Ambit Energy

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Ambit Energy
IndustryMulti-level marketing, energy
GenreRetail electricity and natural gas provider
Founded2006
FoundersJere Thompson, Jr., Chris Chambless
Headquarters
Dallas, Texas
,
United States
Area served
TX, IL, IN, OH, NY, MD, PA, NJ, CT, MA, ME, CA, DE, RI, NH, VA, Washington D.C., AB-Canada and Japan
Key people
  • Jere Thompson Jr.
  • (Co-Founder & CEO)
  • Chris Chambless
  • (Co-Founder & CMO)
  • John Burke
  • (CIO)
  • Laurie Rodriguez
  • (CFO)
[1]
RevenueUS$1 billion (2013)[2]
Number of employees
625 (2014)[3]
ParentVistra Corp
Websiteambitenergy.com

Ambit Energy is an international multi-level marketing company that provides electricity and natural gas services in energy markets in the U.S. that have been deregulated.[4][5] The company's corporate headquarters are located in Dallas, Texas, and its operations/call center headquarters are located in Plano, Texas. Ambit Energy was founded in 2006 in Addison, Texas by Jere Thompson Jr. and Chris Chambless.[6]

Business model[]

Ambit Energy obtains customers through a network of independent consultants who work directly with the customers. Ambit Energy uses a direct sales marketing model and is a member of the Direct Selling Association of America, a public relations and lobby organization that represents the interests of multilevel marketing companies in the United States.[7]

Ambit typically offers customers multiple solutions for their electricity and natural gas utilities depending on the customer's market. After the contracts expire, services may automatically switch to variable-rate plans unless customers manually renew the fixed-rate plans. In some cases, Ambit's variable-rate plans could be substantially more expensive if the customer has not properly renewed. This has prompted complaints and lawsuits from consumers, and an investigation from the New York Public Service Commission.[8][9][10][11] In December 2015, the Department of Public Service in New York announced that it had settled out of court and secured refunds for 1,566 Ambit customers, totaling nearly one million dollars.[12] In September 2017 the New York Public Service Commission determined that at least one independent energy marketer, Ambit Energy, can save money for residential customers and be allowed to sell energy to low-income households.[13]

Ambit thus far is the only energy service company, or ESCO, to win a waiver from the PSC's ban on ESCO sales to low-income customers. Eight other ESCOs have waiver requests pending.

Ambit Energy was named 2010's Fastest Growing Privately Held Company by Inc. Magazine.[6] The company placed 390th in 2011, 1,996th in 2013, and 2,074th in 2014.[3]

Products and services[]

Ambit Energy offers electric, gas, solar services[14] and Green-e plans, offered with a Renewable Energy Certificate.[15] The products and services are offered through their independent consultants.[16]

Solar[]

Solar[14] is offered through Sunrun in several Ambit markets: Illinois, California, Connecticut, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Washington DC. The service is sold through Ambit's independent consultants. Their customers are then matched with a representative from Sunrun who completes the enrollment process.[citation needed]

Criticism from consumer advocates[]

Ambit Energy has come under scrutiny from regulators and consumer advocates. A 2014 ConsumerAffairs article discusses circumstances where customers have had their rates increased by as much as 200 percent by Ambit Energy without warning.[17]

In New York, state officials and consumer groups have claimed that sales representatives, who are paid by commission, have misrepresented contracts, exaggerated financial benefits of membership, and been excessively aggressive in recruiting vulnerable groups such as the elderly and non-native English speakers.[5] In 2014, the New York Public Service Commission (NYPSC) received 450 complaints about the company, most of which are for price gouging, or unanticipated rate increases following the expiration of contracts.[9] In May 2015, the NYPSC launched an investigation into the company.[10] The results of the NYPSC investigation were announced in December 2015, with Ambit refunding 1,566 customers for a total of $950,700.[12]

The company has been the defendant in class-action lawsuits in Illinois, New York, New Jersey, and Pennsylvania.[8][9] The New Jersey lawsuit alleging that Ambit unfairly hiked up its rates was dismissed by the judge, who ruled that Ambit disclosed its rates in its terms of service.[18]

In Texas, Ambit accumulated $57,500 in fines between 2010 and 2012 for violating customer protection rules.[19]

Carol Biedrzycki, of the consumer organization Texas ROSE, has said that representatives for multi-level marketing energy companies are more focused on marketing than on providing continuing service.[20] Biedrzycki has also criticized Ambit and some other Texas energy providers for charging excessive connection and disconnection fees.[21]

Markets[]

Ambit Energy provides energy in 17 areas of the United States, all of which have deregulated energy markets. Ambit operates in California, Connecticut, Delaware, Illinois, Indiana, Maryland, Massachusetts, Maine, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, and Washington, D.C..[22] The company began operating in Japan in May 2017,[23] and in Canada in November 2017.[24]

References[]

  1. ^ Ambit Energy. "Ambit's Leaders | Ambit Energy". Ww2.ambitenergy.com. Retrieved 2014-05-17.[permanent dead link]
  2. ^ "The Road to $1 Billion — Direct Selling News". Directsellingnews.com. 2014-04-01. Archived from the original on 2014-04-07. Retrieved 2014-05-17.
  3. ^ Jump up to: a b "Ambit Energy - Dallas, TX". Inc.com. Retrieved 6 May 2015.
  4. ^ Ambit Energy. "About Ambit Energy | Ambit Energy". Ww2.ambitenergy.com. Retrieved 2014-05-17.
  5. ^ Jump up to: a b Belson, Ken (31 August 2008). "An Alternative to Con Ed Revs Up Its Sales Force". The New York Times. Retrieved 4 February 2014.
  6. ^ Jump up to: a b As told to Darren Dahl (2010-09-01). "Meet America's Fastest-Growing Company: Ambit Energy | Inc. 5000". Inc.com. Retrieved 2014-05-17.
  7. ^ Ambit Energy public profile - Direct Selling Association
  8. ^ Jump up to: a b "Ambit Energy accused of gouging customers". Legal Newsline. Locallabs News Service. 3 April 2015. Retrieved 29 April 2015.
  9. ^ Jump up to: a b c Post, Paul (19 April 2015). "New Yorkers scammed by Dallas-based Ambit Energy". Oneida Dispatch. Retrieved 29 April 2015.
  10. ^ Jump up to: a b "State Launches Investigation Into Ambit Energy After Hundreds Of Consumer Complaints". Vos Iz Neias?. 4 May 2015. Retrieved 4 May 2015.
  11. ^ "The Real Deal: Ambit Energy complaints pilling up". CBS 6 (Albany). 17 July 2015. Archived from the original on 2015-08-12. Retrieved 15 August 2015.
  12. ^ Jump up to: a b "Governor Cuomo Announces Energy Bill Refunds For More Than 1,500 New Yorkers". Governor Andrew M. Cuomo (Albany). 28 December 2015. Retrieved 12 May 2016.
  13. ^ [22]
  14. ^ Jump up to: a b "Savings with Solar". Ambit Energy. Retrieved 12 May 2016.
  15. ^ "Green Energy". Ambit Energy. Retrieved 12 May 2016.
  16. ^ "Start a Business with Ambit Energy". Ambit Energy. Retrieved 12 May 2016.
  17. ^ Abel, Jennifer (24 April 2014). "Deregulated energy providers: are they a good deal?". ConsumerAffairs. Retrieved 14 September 2020.
  18. ^ Davis, Christina (31 July 2015). "Judge Dismisses Class Action Lawsuit Against Ambit Energy". Top Class Actions. Retrieved 15 August 2015.
  19. ^ Mencimer, Stephanie (January 27, 2014). "Plug and Played: 6 Shady Power Providers". Mother Jones. Retrieved September 29, 2017.
  20. ^ Gearino, Dan (21 June 2010). "Energy marketing is suspect, critics say". Columbus Dispatch. Retrieved 1 March 2014.
  21. ^ Lieber, Dave (10 August 2013). "The Watchdog: Texas electricity companies profit from fees that some call 'money for nothing'". Dallas Morning News. Retrieved 1 March 2014.
  22. ^ "Service Areas". Ambit Energy. Retrieved 1 March 2014.
  23. ^ "Ambit Energy Japan". Ambit Energy. Retrieved 1 July 2017.
  24. ^ "Ambit Energy Canada". Ambit Energy. Retrieved 14 November 2017.

External links[]

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