Consumer protections for ESCOs

ESCO: it's an acronym for energy service company. They are the options when a utility customer switches the commodity portion of their bill from the resident utility to an alternate supplier.

New York regulators are considering adopting new consumer service standards for ESCOs.

“Residential consumers are entitled to the same level of protections whether they take service from a competitive energy supplier or a traditional utility,” said Public Service Commission Chairman Garry Brown. “While we welcome and encourage ESCOs to do business in New York, we must ensure that they also offer value to their customers, and that they be good corporate citizens. The issues we are raising for comment are designed to see if the existing system can be improved.”

The new standards are apparently in response to some reports of deceptive marketing practices by some ESCOs.

Here are the new consumer protections being considered by regulators:
· Plain language sales agreements
· An explicit process to resolve ESCO related consumer complaints
· Graduated consequences for ESCO failure to comply with the Universal Business Practices
· Up to 30 day grace periods when the ESCO contract includes a early termination fee
· Standards for telephone and in-person ESCO contacts with customers
· Same language marketing for non-English speaking customers

Read this for more information on the proposal.

To file a comment on this proposal, use this form.

Have you ever had problems with heavy-handed tactics by an ESCO?