Sperian Energy Corporation Accused of Running Price-Gouging Scheme in Pennsylvania

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A case recently transferred to Pennsylvania district court accuses Sperian Energy Corporation of deceptive pricing practices that have allegedly caused thousands of Pennsylvania consumers to overpay for electricity.

Known as an electric generation supplier (EGS), Sperian allegedly attempts to trick consumers into switching energy suppliers. The lawsuit says that to accomplish this, Sperian will offer consumers “false promises,” claiming that its electricity prices are based on market fluctuations and wholesale prices and are therefore better than rates offered by regulated utility providers. In truth, the case alleges, Sperian baits consumers with low initial “teaser rates” before hitting them with “exorbitant” variable rates once their initial rates expire.

According to the complaint, Sperian’s variable rates are not based on market fluctuations, as represented to consumers, and are instead “extraordinarily high premium rate[s]” that consistently exceed “over double the underlying market rate.”

“Specifically,” the case explains, “Sperian’s rates go up to match spikes in the underlying market price. However, when the market price goes down, Sperian’s rate remains at an inflated level several times higher than the market rate.”

The result, according to the lawsuit, is that the defendant collects “millions of dollars in exorbitant charges for electricity” while Pennsylvania consumers are left to foot the bill. The plaintiff argues that he would have been charged a “substantially lower rate” had Sperian’s prices been based on market fluctuations as promised.