Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

Latest Delaware Proposal Still Doesn't Allow for Real-Time Supplier Enrollments Via Telemarketing?

April 23, 2014

Email This Story
Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Delaware PSC has issued another set of proposed revisions to the retail electric market rules, and the latest proposal still literally prohibits telephonic enrollments as they are most often conducted, though whether this reflects poor language or is intentional is another matter.

The PSC had issued a prior set of proposed revisions last summer, and EnergyChoiceMatters.com noted at that time that, when read literally, the earlier proposal provided that verbal verification of a telemarketing sale could not occur until the customer "has been given a copy of the Disclosure Statement," which in the earlier proposal was described as a "written" disclosure.

Though certain language has been slightly reworked, the crux of this issue remains in the latest Delaware proposed rules.

Specifically, the newly proposed rules provide that, "Verbal authorization provided over the telephone as a result of telemarketing or as a result of a Door-to-Door Sale must undergo a Verification Process ... The Verification Process shall ... Confirm that the Customer has been given a copy of the Disclosure Statement ..." (emphasis added).

This language clearly provides that the customer must have been given the disclosure statement, which is defined as a written document, before the verification occurs. This would prohibit the typical cold call telesales and enrollments, limiting enrollments to situations where the customer has previously been given a disclosure statement (or is provided one via email in real-time during the telemarketing call, as the disclosure statement can be provided electronically).

ADVERTISEMENT
Comment on this story at RetailEnergyX.com

However, the use of the past tense in requiring that the customer "has been given" a copy of the disclosure statement may be a continuing oversight, because in the broader context of the rules, traditional telemarketing with immediate verification and enrollment is not explicitly prohibited.

Moreover, in a discussion of the disclosure statement, the proposed rules clearly contemplate that it is permissible that, in telesales, the disclosure statement will be provided to the customer after verification, not before.

Specifically, the proposed rules provide, in a separate section, that, "For a contract entered into verbally through audio recording, Electric Suppliers must affirm to the Customer that the supplier will send the customer the Disclosure Statement within three (3) business days of obtaining the Customers' verbal authorization to enroll." (emphasis added)

This section clearly contemplates that a telesales customer will receive the disclosure statement after obtaining the customer's verbal authorization to enroll, which is inconsistent with the language used above providing that the verification shall affirm that the customer "has been given" the disclosure statement.

Also notable is that the latest proposal retains, with modification, a requirement that suppliers make variable rate information available to customers in advance of charging the rate.

Specifically, suppliers, "offering a variable Price product shall provide a toll-free number or link on the Applicant's website where customers may obtain the Price per kWh at least five (5) calendar days prior to the Price effective date. Customers may waive the five (5) calendar day advance notice by certifying that (s)he has access to ongoing price information via automated price response equipment. This waiver must be prominent and in 10-point type or larger."

It was not clear what specifically, "access to ongoing price information via automated price response equipment," means, or what specific access and information qualifies for this exemption (we understand it generally refers to load response information).

Correcting part of an inconsistency noted by EnergyChoiceMatters.com in the earlier proposed rules, the latest proposal does not provide that, "The Electric Supplier must provide ten (10) calendar days written notice to its Residential or Small Commercial Customer(s) of any price and/or terms of service changes."

Instead, under the new proposal, "The Electric Supplier must provide Written Notice five (5) calendar days in advance to its Residential or Small Commercial Customer(s) of any price and/or terms of service changes."

While this five days now aligns with the 5-day advance posting of new variable rates on the internet or by phone, we still find this "written notice" requirement for price changes (to the extent this applies to variable rates) inconsistent with the direction elsewhere in the rule that suppliers are to provide variable rate info via phone or website.

Additionally, the latest proposed rules still require elsewhere that, "The Electric Supplier shall provide the Residential or Small Commercial Customer with at least ten (10) calendar days written or e-mail notice of any Price changes for a fixed Price contract," making this requirement inconsistent with the 5-day notice described above.

Other notable proposed rules include:

• Verbal authorization of an enrollment provided over the telephone as a result of telemarketing or as a result of a door-to-door sale must undergo a verification process. The electric supplier may choose an independent third-party verification system or the electric supplier shall implement its own audio recording system which includes the entire conversation with the customer.

• For person-to-person and telemarketing solicitations, the agent of the electric supplier shall state that they are not working for and are independent of the customer's EDC.

• A door-to-door sale shall only be conducted at a residential dwelling between the hours of 9 a.m. to 8 p.m.

• An electric supplier may not permit a person or agent to conduct door-to-door sales and marketing activities until it has completed a criminal background investigation, including for current employees and agents engaged in such marketing

Notably, the latest proposed rules strike an earlier proposal that explicitly provided that, "The Electric Supplier may not hire a Person or Agent for Door-to-Door Sales or marketing who was convicted of a felony or misdemeanor when the conviction reflects adversely on the persons suitability for such employment."

The rescission period has been muddled by the latest proposed rules.

In one section, the proposed rules would provide that a residential or small commercial customer has 7 business days from the day the EDC sends the confirmation letter to rescind their selection without penalty or fee.

However, elsewhere, the authorization completed by the customer must state that the customer, "will not be switched from the current Electric Supplier or SOSS [Standard Offer Service Supplier] until the ten (10) day rescission period has expired."

The current rescission period is 10 calendar days.

The new proposal retains an earlier proposal that the Price to Compare for SOS be included on all bills.

The proposed rules also contain various provisions relating to disclosure statements, renewal notices, and permissible marketing, but such proposals do not significantly depart from standard fare in the industry.

See Related Story Today: Will New Definition of Broker Ensnare All Intermediaries and Marketing Agents (Even MLM)?

Regulation Docket 49

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Marketing Manager-Lead Generation -- Retail Provider -- Houston
NEW! -- Business Developement Manager -- New York
NEW! -- Channel Marketing Manager -- Retail Supplier -- Houston
NEW! -- Regional Sales Manager, TX/PA/Various -- Retail Supplier -- Houston
NEW! -- Manager, Pricing -- Retail Supplier -- Houston
NEW! -- Energy Analyst -- Retail Supplier
NEW! -- Senior Billing & Transactions Analyst -- Retail Supplier -- Houston
NEW! -- Analyst - Energy & Operations -- Retail Supplier -- New York
NEW! -- Analyst, Trading and Supply Operations -- Retail Supplier -- Houston
NEW! -- Vice President Risk Management -- Retail Supplier -- New York

Search for more retail energy careers:
RetailEnergyJobs.com


Email This Story

HOME

Copyright 2010-13 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search