DPU Reaches Settlement Agreement with Competitive Supplier
BOSTON — The Massachusetts Department of Public Utilities (DPU) recently entered into a settlement, also known as an Informal Remedial Plan, with Direct Energy Services, LLC, a subsidiary of NRG Energy, Inc., for its noncompliance with the DPU's requirements for competitive suppliers.
The Plan is a direct result of the DPU's investigation into the company's business practices, specifically for telemarketing activities.
As part of the settlement, the company will donate $101,750 to Boston Medical Center's Clean Power Prescription program, a first-in-the nation program that allows the Center's providers to write their patients' prescriptions for reduced utility bills using renewable energy generated by the hospital. The program helps to support the physical, economic, and environmental health of BMC patients.
This marks the first time the DPU has posted an Informal Remedial Plan online, providing transparency for customers and illuminating to the public the DPU's rigorous oversight of competitive suppliers. The Plan was issued by Commissioner Liz Anderson in her capacity as the Delegated Commissioner overseeing regulation of licensed competitive energy suppliers in Massachusetts.
"The DPU's competitive supply team has long fought to protect consumers from predatory tactics of competitive suppliers, through both formal proceedings and often unseen compliance efforts that make an impact," said Liz Anderson. "As the Delegated Commissioner for competitive supply matters, I have the privilege of leading this dedicated team so we can continue to do what is right for consumers and hold suppliers accountable for compliance with the state's laws and regulations."
The investigation revealed that the company did not use an introductory marketing script at the beginning of 407 calls between July 2024 and June 2025, as required by the DPU. Marketing scripts, which must be recited at the beginning of every call, are designed to provide customers with non-deceptive information regarding the competitive supply company by specifying the name of the company, that the company is a licensed electric supplier, and that the company is not affiliated with local utilities or municipal energy programs.
The Informal Remedial Plan resolves the company's noncompliance in this instance. As part of the Plan, the company will not engage in outbound telemarketing activities in Massachusetts for one year, effective December 19, 2025. Outbound telemarketing includes telephone marketing and sales activities, including contacting existing or previous customers, initiated by the company or its third-party vendors.
The Plan does not affect the company's license to provide electricity supply services to existing customers in Massachusetts.
