New Gas Company?

[Justin]

Thanks to deregulation we now have a choice in which gas company to use. I have switched but no one seems to know about it. Has anyone heard of Ambit? Will this help keep energy prices competitive?

[Mr. Vain]

Actually, there is no REAL choice of gas companies. Its just an illusion.

Ambit, just buys gas in bulk from Nicor and resells it. According to Ambit's terms and conditions, you are buying gas from Ambit, but Nicor is still supplying the gas and the service.

Ambit, is just a big MLM (Multi Layer Marketing) scheme.

Good article on Ambit (albeit its about Ambit Electricity in Texas but its the same company and concept).

ambit energy scam

[Justin]

Mr Vain,

Regardless if it is a MLM (Multi Level Marketing) company or not. My gas bill is cheaper and I earn frequent flier miles ever month I pay my bill. Nicor did not offer that, and I received a 2 night stay at a hotel for switching. So far so good. Switching was easy and did not cost me a penny. So I still get the same service, it is still delivered the same way, and I pay less. If it is a scam... I am pretty happy with it.

[Mr. Vain]

The problem that I have with companies like this, is the fact that they tend not to last long and end up getting sued by the DOJ. A lot of MLM companies are flawed because their focus isn't customers but rather the downline of "independent sales agents".

There was another similar company in the area that closed up shop and ended up getting sued by the DOJ.

According to the ambit website customers will only save 1% off their Nicor bill, which is $1 for every $100.

Those "travel vochures", I hate to say, but anyone can buy those for like $15 or less. And there horrible to redeem.

Unfortunately, the people who are the most willing to talk up Ambit, are the independent sales agents so no one can truly get an unbias logic based opinion.

[Justin]

Well this company is focused on customers. How many gas companies offer their customers an opportunity to earn an income, or travel rewards. Not only that but that downline they are so focused on... aren't they all customers? Also if you are a consultant you must have a set number of customers yourself to get paid. Not only that but you can sign up as many consultants as you want but if each and everyone does not meet these customer requirements no-one gets paid.

I think that "only 1%", as you put it is still saving. I might be frugal, but saving is saving. Everyone is entitled to their own opinion, and I respect yours. I appreciate your input and your opinion. I on the other hand have went with one bank over another for 1%, for my mortgage (.25%), credit cards, and now my gas bill. I know interest is a little different, but sales tax isn't. I have gone to Iowa for back to school shopping for my kids on no tax weekend to save money. As far as the travel vouchers, wether they are $15.00 or not, that is more than Nicor has ever offered me. When I first signed up and I was just a customer, I reffered five friends and received a free cruise. When we get back I will let you know how difficult it was and if it was worth their $15.00

I do not understand how there was another gas company here that went under already if the area has only been deregulated for 4 months. I have never seen the Dept. of Justice work that fast, but I will take your word for it.

I do believe that Ambit buys their gas in bulk from shell not nicor. I might be wrong, but that is who their contract is with.

[Mr. Vain]

According to Ambit's website, Nicor is the distributor of the gas. Purchasing gas from shell then giving that gas to Nicor to distribute seems more work and overhead then needed.

Illinois Terns PDF

I will have to wait to I get to my other computer to find the name of the other company that the DOJ sued. The only reason why I know about it, is because a girl I used to work with was a customer of theirs and she got a letter in the mail and showed it to me, it was accompanied by a check for the money she had paid the company.

[William Collett]

I know that this discussion is a bit old - but thought that I should jump in!
I'm an Ambit Rep and some where along the way in this blog it was said Ambit buyes gas from Nicor. Keep in mind Nicor is a distributor and Ambit is connected with Royal Dutch Shell. We all need to keep in mind that the natural gas is pretty much just dumped into the pipeline. Then goes to the distribution hubs. The main hook up for the the ships to unload is in Supirior WI.
So yes bulk is bulk but some where along the way some has to put it into the pipeline like Shell, BP,Exon. They are the big three with natural gas, oil,etc. So Nicor would be buying from them not the other way around.
I work with nonprofits doing fund raising with Ambit. We have raised thousands and thousands of dollars directly for the churches and send church members on cruises and get seniors free natural gas. The free gift for just signing up (two nights and three days) is a bit of a pain to set up ...but it was a fun trip.