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Consumer Advocate: PSC Should License Suppliers' "Independent Representatives" (Including MLM Agents)

October 6, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Maryland PSC should, "license or register," the, "independent representatives" of retail energy suppliers, the Office of People's Counsel said in comments to the Maryland PSC.

OPC was commenting on PSC Staff's proposed revisions to the customer protection rules, which, as previously reported, would eliminate the ability for retail electric and natural gas suppliers to obtain customer consent for a switch via a verbal authorization, such as a TPV, and would instead require that all authorizations be in the form of written or electronic consent (click here for story).

"Give[n] the reliance on door to door and telephone marketing, the Commission should have the ability to easily identify the independent representatives (including multi-level marketers) who are soliciting residential customers; they are the representatives who actually interact directly with consumers," OPC said.

"OPC recommends that the Commission license or register independent representatives of licensed energy suppliers. At a minimum, suppliers should be required to provide a list of all IRs to the Commission, and update it on a regular basis," OPC said.

OPC also:

• Opposed POR, and sought to limit purchased receivables to the lower of supplier charges or shadow-billed SOS charges

• Proposed that suppliers be required to obtain affirmative consent to roll customers onto a variable rate at the end of a fixed rate term

• Proposed limiting termination fee to $50

• For variable rates, proposed a cap or limitation on monthly or other periodic changes; alternatively, at a minimum, advance disclosure of a clear, understandable and replicable methodology or formula for the rate change.

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