Ambit Energy

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Ambit Energy
Industry Energy
Genre Retail electricity and natural gas provider
Founded 2006
Founders Jere 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 and Washington D.C.
Key people
 Jere Thompson Jr. (Co-Founder & CEO), Chris Chambless (Co-Founder & CMO), John Burke (CIO), Laurie Rodriguez (CFO)[1]
Revenue USD $ 1 Billion (2013)[2]
Number of employees
 625 (2014)[3]
Website ww2.ambitenergy.com

Ambit Energy is a United States multi-level marketing[4] company that provides electricity and natural gas services in energy markets in the U.S. that have been deregulated.[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 multilevel 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 is the United States.[7]

Ambit typically offers customers one or two-year fixed-rate contracts for utilities. 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 are substantially more expensive. This has prompted complaints and lawsuits from consumers, and an investigation from New York Public Service Commission.[8][9][10][11] In December 2015, the Department of Public Service in New York reviewed Ambit’s response to the investigation and determined that it had adequately addressed deficiencies and had appropriately adjusted.[12]

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

Products and services

Ambit Energy offers electric, gas, solar services [13] and Green-e plans, offered with a Renewable Energy Certificate (United States).[14] The products and services are offered through their Independent Consultants.[15]

Solar

Solar [13] is offered through Sunrun in several Ambit markets: California, Connecticut, Massachusetts, Maryland, New Jersey and New York. The service is sold through Ambit’s Independent Consultants. Their customers are then matched with a representative from Sunrun who completes the enrollment the process.

J.D. Power and Associates rankings

Ambit Energy was recognized as the Highest in Residential Customer Satisfaction among Retail Electric Providers in Connecticut, New Jersey and Pennsylvania in 2014.[16] and 2015.[17] and the Highest Retail Electric Provider Satisfaction in New York Region in 2013.[18]

Criticism from consumer advocates

Ambit Energy has come under scrutiny from regulators and consumer advocates. A 2014 story by ConsumerAffairs documents numerous complaints by customers whose rates doubled or tripled without warning. Complainants also said it was difficult to contact Ambit to discuss rates or switch plans.[19]

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.[4] 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. NYPSC evaluated Ambit’s answer to the investigation and decided their adjustments to customers’ rates and bills were appropriate.[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 Energy Holdings LLC unfairly hiked up its rates was dismissed by the judge, who ruled that Ambit disclosed its rates in its terms of service.[20]

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.[21] Biedrzycki has also criticized Ambit and some other Texas energy providers for charging excessive connection and disconnection fees.[22]

Community investment

Ambit Energy started Ambit Cares [23] in September 2015 to advocate fighting hunger in America. Ambit’s employees and Independent Consultants support the cause by volunteering their time and making monetary and food donations in their local communities.[24]

Markets

Ambit Energy provides energy in 17 areas, 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..[25]

References

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  6. ↑ 6.0 6.1 Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ Ambit Energy public profile - Direct Selling Association
  8. ↑ 8.0 8.1 Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ 9.0 9.1 9.2 Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ 10.0 10.1 Lua error in package.lua at line 80: module 'strict' not found.
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  12. ↑ 12.0 12.1 Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ 13.0 13.1 Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
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  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.

External links

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