Clean Currents Says Independent Contractors Enrolling Customers Should be Licensed in Maryland

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November 30, 2010

"If a person is an independent contractor and is actively engaged in enrolling customers with a licensed energy supplier, he/she should be required to have a broker license," Clean Currents said in comments to the Maryland PSC in its investigation of supplier licensing (9245).

The Maryland PSC is investigating whether several non-traditional sales channels should require a supplier/broker license (11/9).

"In effect, what [independent contractors who enroll customers] are doing is exactly the same as what currently licensed brokers do.  By not having to obtain a license they are 1) gaining an unfair competitive advantage and 2) leaving the public without any definitive licensed organization being held responsible for their actions," Clean Currents said.

Clean Currents said that if a charitable or similar organization is merely promoting a product offered by a licensed entity and directing people to a web site owned and operated by a licensed entity, that organization should not be required to obtain a license.  However, if the organization uses its own "dedicated" website, distinct from that of a licensed entity, then the organization should be required to obtain a license, Clean Currents said.

Similarly, "[i]f an individual is merely informing the public about an offer from a licensed entity, and such individual is not enrolling people on paper or on a web site he owns, or that's under his control, then the individual should not have to get a license," Clean Currents said.

"[S]ales representatives and non-traditional agents should be required to obtain a license if they directly handle contracts for an electricity supplier, but are not employed by a licensed entity.  Employees of a licensed broker or supplier should not be required to get individual licenses as their employers can be held accountable for their sales practices.  Non-traditional agents such as churches and community groups should also not be required to get licensed if they are simply disseminating information to their constituents about electricity choice, whether this information is about one or several companies," Clean Currents added.

Clean Currents suggested a flow chart (see page 3) to determine whether a license should be required of an entity or individual.

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