Ambit Energy

Ambit Energy

Company type	Private
Industry	Energy, Multi-level marketing
Founded	January 1, 2006 (2006-01-01) in Addison, Texas, United States
Founder	Jere Thompson Jr., Chris Chambless
Headquarters	Dallas, Texas , United States
Area served	Deregulated U.S. energy markets
Products	Electricity, natural gas, solar energy solutions, Green-e certified plans
Website	www.ambitenergy.com

Ambit Energy operates as a global multi-level marketing enterprise delivering electricity and natural gas solutions within deregulated U.S. energy market sectors. The company’s headquarters are located in Dallas, Texas, and it was established in 2006 in Addison, Texas by founders Jere Thompson Jr. and Chris Chambless.

Business model

The customer base for Ambit Energy is built through a network of independent representatives employing a multilevel marketing strategy. The company holds membership in the Direct Selling Association of America.

Ambit generally provides fixed-rate utility agreements lasting one or two years. Upon expiration, customers are often transitioned automatically to variable-rate plans, which can result in significantly higher charges. This practice has triggered consumer grievances, legal actions, and an inquiry by the New York Public Service Commission. In December 2015, the New York Department of Public Service resolved these issues through an out-of-court agreement that returned almost $1 million to 1,566 affected customers.

In 2010, Inc. Magazine recognized Ambit Energy as the fastest-growing privately owned company. The firm’s rankings included 390th place in 2011, 1,996th in 2013, and 2,074th in 2014.

Products and services

Ambit Energy offers electricity, natural gas, solar energy solutions, and Green-e certified plans supported by Renewable Energy Certificates. These products are promoted via independent consultants.

Solar

Solar energy options are accessible through a partnership with Sunrun in selected states such as Illinois, California, and New York among others. While Ambit’s consultants initiate sales of this service, customers subsequently work directly with Sunrun representatives to complete the enrollment process.

Criticism from consumer advocates

The company has encountered regulatory challenges and consumer complaints. In 2014, ConsumerAffairs highlighted reports of abrupt rate increases coupled with difficulties customers faced when attempting to reach Ambit to discuss their service plans.

In New York, sales agents working on commission have been accused of misrepresenting contract terms and aggressively targeting vulnerable populations. The New York Public Service Commission recorded approximately 450 complaints in 2014, primarily concerning unexpected rate surges following contract renewals. A subsequent investigation led to Ambit reimbursing nearly $951,000 to 1,566 customers.

Ambit Energy has been named in class-action lawsuits across Illinois, New York, New Jersey, and Pennsylvania. One case in New Jersey alleging unfair rate hikes was dismissed because the company had disclosed its rates within its service agreements.

From 2010 through 2012, Texas authorities imposed fines totaling $57,500 on Ambit for breaches of customer protection regulations. Consumer advocates such as Carol Biedrzycki from Texas ROSE have criticized Ambit’s emphasis on aggressive marketing over sustained customer service and have condemned the high connection and disconnection fees charged by some energy providers in Texas.