Is Just Energy A Real Company?

Just Energy is a retail energy and gas provider operating in Canada, the United States, and the United Kingdom. The company was founded in 1997 in Ontario, Canada and has since grown to serve over 1.5 million customers worldwide. Just Energy sells electricity, natural gas, and green energy products like carbon offsets and solar power to residential and commercial customers.

Just Energy aims to provide energy rates that are lower than the local regulated utility companies. They offer fixed-rate, variable rate, flat bill, and price protected energy rate plans. Customers can enroll in Just Energy’s services either door-to-door, online, or over the phone.

Just Energy has faced some controversies in recent years. In 2018, the company was fined $500,000 for violating telemarketing sales rules in Massachusetts. There have also been complaints about deceptive sales practices by door-to-door sales agents misrepresenting contract terms. However, Just Energy maintains that these instances are rare and do not reflect their business practices overall.

History of Just Energy

Just Energy is an independent energy marketing company that was founded in 1997 in Toronto, Canada by Rebecca MacDonald and Scott Gahn. The company started off by selling natural gas to residential and commercial customers in Ontario through door-to-door marketing.

In 2001, Just Energy expanded its operations to the United States. Over the next several years, it continued expanding to offer additional energy products and services such as electricity and green energy options. The company also expanded into other markets like the UK, Germany, Ireland, Japan and Australia.

Some key people involved with Just Energy over the years include co-founders Rebecca MacDonald who served as CEO until 2007 and Scott Gahn who was the President. James Lewis took over as CEO from 2007 to 2018 before the current CEO, Patrick McCullough, took over in 2019. Other notable executives include Beth Summers who is the CFO and R. Scott Gahn who is the current President.

Major events in Just Energy’s history include its IPO in 2004 when it began trading on the Toronto Stock Exchange as JE. The company also began trading on the New York Stock Exchange in 2012 as JE. Just Energy has acquired several other energy companies over the years including Hudson Energy Services, National Home Services, Momentis, Filter Group and TerraPass.

Services Offered by Just Energy

Just Energy provides a range of energy services to residential and commercial customers across North America. The company offers electricity, natural gas, solar power, and renewable energy options depending on the location.

For electricity, Just Energy provides fixed-rate and variable-rate plans. Fixed-rate plans allow customers to lock in a set energy rate for 1 to 5 years, while variable-rate plans fluctuate based on the market. Electricity plans are available in states like Texas, Illinois, New York, and Georgia.

Natural gas plans are offered in markets like Ontario, Manitoba, Quebec, Michigan, Ohio, California, and New York. Just Energy secures gas supply on behalf of customers and offers competitive pricing plans. Gas supply is transported to homes and businesses through local utility pipelines.

Just Energy also provides solar power and renewable energy options in select markets. This includes selling electricity generated from solar or wind sources. Customers can choose to power their homes with cleaner energy through Just Energy’s renewable power plans.

For pricing, Just Energy offers both fixed and variable rate plans. Fixed rate plans allow customers to secure a consistent energy rate for a term of 1 to 5 years. Variable rate plans will fluctuate based on market conditions. Rates depend on local energy markets and utility pricing in each area Just Energy serves.

Most plans have monthly customer fees, credit checks, and early cancellation fees. Just Energy contracts are only available in eligible states and cities where the company operates.

Reviews

Just Energy has a mixed track record when it comes to customer reviews and complaints. On one hand, some customers report being satisfied with Just Energy’s rates and customer service. Positive reviews praise their competitive variable rates and easy enrollment process. However, Just Energy has also received a significant number of negative reviews and complaints over the years.

One of the most common complaints against Just Energy is hidden fees and unexpected rate hikes after the initial promotional period ends. Customers report being hit with fees and charges they were not made aware of initially. Just Energy has also been accused of using high-pressure and deceptive sales tactics to get people to sign contracts they don’t fully understand.

Just Energy has been the subject of a growing number of lawsuits and investigations over its business practices. They have faced class action lawsuits alleging fraud, misleading marketing, and violation of consumer protection laws. Several states and regulatory agencies have investigated or taken action against Just Energy in response to waves of customer complaints.

While Just Energy maintains an A+ rating with the Better Business Bureau, their overall review profile is poor. Just Energy has over 1,500 BBB complaints on file and only 1 out of 5 stars on review sites such as Trustpilot. Complaints from both BBB and third-party sites show a pattern of questionable business practices and poor customer service.

Scandals

Just Energy has been involved in several controversies and scandals over the years related to allegations of deceptive business practices. This includes multiple lawsuits, regulatory investigations, and accusations of misleading customers.

In 2017, a class action lawsuit was filed in Canada alleging the company enrolled customers without consent and made false representations about rates. Just Energy settled the case in 2019 for $3.4 million.

There have also been investigations by regulatory agencies in the U.S. and Canada concerning Just Energy’s sales and marketing tactics. In 2020, the Massachusetts Attorney General sued the company for deceiving customers, including elderly residents. Just Energy settled that case for $7.5 million.

Other lawsuits have accused Just Energy of charging excessive fees, automatically renewing contracts without permission, and making it difficult for customers to cancel. The company has faced criticism for lacking transparency in its pricing and contract terms.

While Just Energy maintains its business practices are lawful, the recurring legal issues and penalties imposed point to systemic problems with how the company acquires and services customers. The scandals have damaged Just Energy’s reputation despite its efforts to portray itself as a trustworthy energy provider.

Legitimacy of Just Energy

Just Energy is a legitimate energy provider that operates in several deregulated energy markets across North America. The company is licensed to sell electricity and natural gas in the states and provinces where it conducts business. Just Energy must follow regulations set by public utility commissions and energy oversight agencies in each jurisdiction.

As a licensed energy retailer, Just Energy provides terms and conditions to customers that outline pricing, contract duration, renewal terms, fees, and other key details. Customers have the option to thoroughly review the terms before entering into an agreement. This provides transparency into Just Energy’s offerings.

While Just Energy engages in door-to-door marketing of energy contracts, which has led to some criticism, the core business of supplying energy under contract is legal and regulated. There are proper channels to file official complaints if the terms and conditions are not followed.

Reputation

When looking into the reputation of Just Energy, two key areas to examine are the company’s Trustpilot score and BBB rating. On Trustpilot, Just Energy currently has a poor score of 1 out of 5 stars, based on nearly 1,700 reviews. The vast majority of these reviews are negative, with customers complaining of overly high rates, misleading sales tactics, and poor customer service. Just Energy’s Business Profile on the Better Business Bureau (BBB) similarly paints a concerning picture. The company has a BBB rating of just 1 out of 5 stars, with over 1,500 complaints filed against the business in the last 3 years. Just Energy has also received an “F” grade from the BBB due to failure to respond to complaints in a timely manner. Based on these poor reviews and ratings, Just Energy appears to have developed a substantially negative reputation when it comes to how the company treats its customers. Many reviewers caution others to avoid signing up for Just Energy’s services.

Financials

Just Energy is a publicly traded company listed on the Toronto Stock Exchange and New York Stock Exchange. As such, the company’s financial information is publicly available through quarterly and annual reports.

In its most recent 2021 annual report, Just Energy reported:

• Revenue of $2.1 billion, down from $2.8 billion the previous year.
• Total assets of $1.1 billion, compared to $1.7 billion in 2020.
• Long-term debt of $322 million, versus $570 million in 2020.

The decrease in revenue and assets from 2020 to 2021 reflects Just Energy’s financial difficulties and restructuring efforts. The company has been working to reduce its debt load. However, Just Energy still faces challenges with profitability, cash flow, and debt obligations.

Overall, Just Energy’s financials demonstrate it is a legitimate large corporation, though one that has faced instability in recent years. The public nature of its financial reporting provides transparency into the company’s performance.

Alternatives to Just Energy

For customers looking for alternatives to Just Energy, there are a few options:

Other Energy Providers

Most areas have multiple energy providers to choose from. Do some research to see what other companies service your area. Some major electricity and gas providers include Direct Energy, Constellation, NRG, and many more regional and local providers.

Shop around and compare rates and services between competitors. See who offers the best prices and incentives. But make sure to read the fine print to understand the full terms of service.

Green Energy Options

If you want a more eco-friendly energy source, look into renewable energy providers that get electricity from solar, wind, hydro, and other green sources. This allows you to reduce your carbon footprint.

Many areas now give you the option to select 100% renewable energy from your utility company. You may pay slightly higher rates but it supports the growth of clean energy.

You can also install solar panels or other renewable energy systems to produce your own clean electricity. This involves high upfront costs but can pay off in the long run.

Research all the green energy choices available for an ethical and sustainable energy supply.

Conclusion

In summary, Just Energy is a legitimate energy company that has been providing services since 1997. They offer electricity, natural gas, solar power, and green energy plans to residential and commercial customers across North America. The company has faced some controversies and customer complaints over pricing and sales practices, but they remain one of the largest independent energy providers. While not perfect, Just Energy has millions of customers, trades publicly, and brings in billions in revenue annually. Their longevity and size indicate they are not a scam but rather an established energy supplier. Customers unsatisfied with Just Energy do have the option to switch providers or complain to regulatory agencies to seek resolution. Overall, the evidence shows Just Energy is a real and legitimate company, albeit one that has a mixed reputation.