Constellation Energy, Inc., is a publicly traded energy company that provides electricity, natural gas, and energy services to consumers and businesses in the United States. The company is currently facing a class-action lawsuit alleging that it has charged customers a retail service charge that exceeds the cap stipulated in its contracts.
The lawsuit was filed in federal court in New Jersey in August 2022, and it names Constellation Energy, Inc. and its subsidiary, Constellation NewEnergy, Inc., as defendants. The complaint alleges that Constellation’s standard contract outlines that its retail service charge “will not exceed $0.065 kW/h.” However, the complaint alleges that Constellation “ignores the language of its contract” and charges more than $0.065 per kilowatt hour, hitting customers with electricity and natural gas rates consistently higher than what they were charged by their existing utilities.
The lawsuit is seeking injunctive relief and damages for customers who have been overcharged by Constellation. The case is still in its early stages, and no trial date has been set.
- What is a retail service charge?
A retail service charge is a fee that is charged by energy suppliers to cover the costs of providing electricity and natural gas to customers. The fee typically covers costs such as customer service, billing, and marketing.
- Is Constellation Energy allowed to charge more than the cap stipulated in its contracts?
No. If Constellation’s standard contract states that its retail service charge “will not exceed $0.065 kW/h,” then the company is not allowed to charge more than that amount.
- What is a class-action lawsuit?
A class-action lawsuit is a type of lawsuit in which a group of people with similar claims sue a defendant together. Class-action lawsuits can be used to resolve a large number of claims efficiently and fairly.
- What can I do if I think I have been overcharged by Constellation Energy?
If you think you have been overcharged by Constellation Energy, you should contact the company’s customer service department. You can also contact a consumer protection agency in your state.
- Is there a way to get out of my Constellation Energy contract?
It depends on the terms of your contract. Some Constellation Energy contracts allow customers to cancel early, but there may be a fee associated with doing so. You should review your contract carefully to see what your options are.
The Constellation Energy lawsuit is still in its early stages, but it is important for customers to be aware of the allegations and their rights. If you think you have been overcharged by Constellation Energy, you should contact the company or a consumer protection agency.
- Constellation NewEnergy Facing Class Action Over ‘Excessive’ Retail Service Charges: https://www.classaction.org/news/constellation-newenergy-facing-class-action-over-excessive-retail-service-charges
- Constellation Sues Another Gas Supplier Over Delivery Failure: https://news.bloomberglaw.com/environment-and-energy/constellation-sues-another-gas-supplier-over-delivery-failure