DPU Settlement with Direct Energy for Telemarketing Violations
Summary
The Massachusetts Department of Public Utilities (DPU) reached a settlement with Direct Energy Services, LLC, requiring the company to donate over $100,000 and cease telemarketing activities for one year. This action stems from an investigation into Direct Energy's noncompliance with DPU requirements for competitive suppliers regarding marketing scripts.
What changed
The Massachusetts Department of Public Utilities (DPU) has finalized a settlement agreement with Direct Energy Services, LLC, a subsidiary of NRG Energy, Inc., resolving an investigation into the company's telemarketing practices. Direct Energy will donate $101,750 to Boston Medical Center's Clean Power Prescription program and will be prohibited from engaging in outbound telemarketing activities in Massachusetts for one year, effective December 19, 2025. The investigation found that Direct Energy failed to use required introductory marketing scripts at the beginning of 407 calls between July 2024 and June 2025, which are designed to provide customers with non-deceptive information about the company and its affiliation status.
This settlement requires Direct Energy to cease telemarketing for a year and make a significant donation, serving as a penalty for non-compliance with DPU regulations. Other competitive energy suppliers in Massachusetts should review their telemarketing scripts and call procedures to ensure full compliance with DPU requirements, as the DPU has indicated a commitment to rigorous oversight and holding suppliers accountable. Failure to comply with such requirements could result in further enforcement actions and penalties.
What to do next
- Review telemarketing scripts and call procedures for compliance with DPU requirements.
- Ensure all required introductory marketing scripts are recited at the beginning of every call.
- Cease outbound telemarketing activities in Massachusetts for one year from December 19, 2025.
Penalties
$101,750 donation to Boston Medical Center's Clean Power Prescription program; one-year cessation of outbound telemarketing activities in Massachusetts.
Source document (simplified)
- This page, DPU Reaches Settlement Agreement with Competitive Supplier, is offered by
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- Electric Power Division
Press Release
Press Release DPU Reaches Settlement Agreement with Competitive Supplier
Direct Energy agrees to donate over $100,000 to Boston Medical Center’s Clean Power Prescription program and will cease telemarketing activities for one year
For immediate release: 1/05/2026
- Department of Public Utilities
- Electric Power Division
Media Contact
Alanna Kelly, Communications Director
Phone
Call Alanna Kelly, Communications Director at 857-283-3794
Online
Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
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.
Media Contact
Alanna Kelly, Communications Director
+
Phone
Call Alanna Kelly, Communications Director at 857-283-3794
Online
Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
Department of Public Utilities
The Department of Public Utilities (DPU) oversees investor-owned electric power, natural gas, and water companies in Massachusetts. In addition, the DPU regulates the safety of bus companies, moving companies, and transportation network companies. We also oversee the safety of natural gas pipelines.
Electric Power Division
The mission of the Electric Power Division (EPD) is to ensure that the electric distribution companies in Massachusetts provide safe, secure, and reliable electric service while promoting affordability, equity, and greenhouse gas emission reductions.
In addition, EPD supports the DPU Commission’s goals to:
• protect electric ratepayers
• improve transparency, responsiveness, and public engagement
• increase the DPU’s capacity to tackle future challenges
Media Contact
Alanna Kelly, Communications Director
Phone
Call Alanna Kelly, Communications Director at 857-283-3794
Online
Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
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