Deceptive Trade Practices – Texas Electric Utilities
In Texas, electricity service was deregulated in 2001 when lawmakers determined the free market would prove beneficial in terms of level of service and pricing for Texas electric consumers. Since 2001, service has not improved, pricing has significantly increased, billing regulation and disconnection are infrequent and electric companies are now involved, in what appears to be, deceptive trade practices.
The Deceptive Trade Practices Act (DTPA) prohibits the act of creating confusion and misunderstanding into an affiliation’s responsibilities and services, prohibits the misrepresentation of goods and services as to a specific quality and grade, prohibits advertising of a service with the intent to not supply the level of public demand and prohibits the engagement of activity which creates confusion and misunderstanding. Additionally, when a company is found to be in violation of the Deceptive Trade Practices Act, the proof of monetary damage, loss of profit and intent to deceive are not required. For Texas electric customers, the filing of Deceptive Trade Practice violations should be considered as the Texas electric utility providers continue to fail to provide service as demanded by the public, fail to appropriately bill for services, are involved in price gouging, engage in disconnection of services without following regulatory guidelines for financial assistance to the needy and are engaging in acts which create a financial burden on the electric customer. Remedies, fortunately, under the DTPA are provided under both federal law, as well as state law with the Attorney General privileged, with the option of pursuing civil penalties up to $10,000 per violation.
In Texas, the electric utility services are deregulated. At pricing equivalent to 50% above the average rate for the country, Texas electric companies may be practicing in price gouging during a period of significant high temperatures and heat advisories. As a result, Texas electric utility consumers are suffering the affects of this price gouging from their wallets. In addition to questionable justification of pricing, the Texas electric utility companies are required to provide prompt and appropriate billing notices, include 10 day termination notices and offers for average billing when a customer is current on billing. In this deregulated Texas electric utility market, none of these practices are taking place. In fact, the Texas electric utility companies have been known to disconnect service without warning, require deposits higher than allowed under the Public Utility Commission guidelines, and offer no voluntary recommendations for average billing, deferred billing or consumer services when faced with a customer who may have, or has had, electricity service disconnected. In fact, the Texas electric utility companies have been known to disconnect calls when faced with a customer who seeks assistance in terms of financial arrangements.
With electrical service increasing an average of $100 or more per month, during summer heat waves, Texas customers are unable to manage electrical service charges as in the past. To correct the matter, Texas electric consumers, in significant numbers, are filing complaints with the electric utility companies and with the Public Utility Commission. While the PUC can not regulate pricing, they are the first line of defense when the electric company is involved in deceptive trade practicing in terms of customer service, billing and deposit collections. For Texas electric utility customers with poor or inappropriate activity by the electric service provider, contact the Public Utilities Commission for complaint filing at www.puc.state.tx.us.
