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PSC Suspends Retail Supplier's Ability To Market To And Enroll Customers

November 9, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The New York PSC suspended Astral Energy, LLC's ability to market to and enroll residential and non-residential customers until the Commission orders otherwise.

The PSC, in a prior show cause order, had previously delineated that the PSC has, "received numerous complaints, many alleging slamming," against Astral, including an allegation from BluCo Energy, LLC that, as described by the PSC, "in an effort to sign up BluCo’s customers, Astral has called existing BluCo customers and stated to them that BluCo was going through financial difficulty and that BluCo had negotiated with Astral for Astral to offer BluCo customers a more competitive rate."

Click here for prior story on allegations against Astral

In response to the show cause order, Astral had already voluntarily suspended all marketing and enrollment of residential customers for a period of 60 days or until 10 days after the conclusion of the first month when the level of Quick Resolution System (QRS) complaints filed with the Department are equal to or below the level achieved in May 2015. Astral also detailed other remedial measures it was taking in its response to the show cause order

However, the PSC said that, "in the 21 days since the issuance of the Show Cause Order, the rate of QRS complaints regarding Astral has not significantly decreased."

"In August 2015 the Department received 12 QRS complaints against Astral, ten of which allege slamming. In September 2015, the Department received 25 QRS complaints regarding Astral, all alleging slamming and/or concerns regarding Astral’s marketing activities. Since the Show Cause Order was issued on October 15, 2015, despite Astral’s claimed corrective measures to prevent future slamming complaints and further non-compliance with the UBP, the Department received 15 QRS complaints from residential and non-residential customers alleging slamming, difficulty returning to the utility, questionable marketing practices and dissatisfaction with price of a fixed rate contract ... This indicates continuing lack of oversight of its marketing agents," the PSC said

"Moreover, even though, in its 7-Day Response, Astral provides assurances that it is correcting deficiencies in its operations, as described in the Show Cause Order, there is reason not to rely on Astral’s mere representations that it will market and enroll customers in compliance with the UBP. Specifically, while Astral had provided the Department with sample contracts that generally were compliant with the requirements of the UBP, Astral in practice provided its customers with an insufficient and non-UBP compliant sales agreement," the PSC said

"In suspending its marketing to residential customers, Astral does appear to recognize the gravity of the problems posted by its non-compliance with the UBP. However, Astral’s offer to cease marketing only to residential customers and only for a pre-ordained limited time period is insufficient. The issues raised in the Show Cause Order were not limited to residential customers. For example, Astral used its noncompliant sales agreement with non-residential customers as well, and the Department continues to receive QRS complaints from non-residential customers about Astral regarding slamming and marketing issues," the PSC said

"Furthermore, given the apparent fundamental issues that Astral’s management seems to have been unaware of until recently, it is appropriate to require subsequent Commission action before Astral be allowed to enroll customers again. Astral is still preparing its 30-Day Response to the Show Cause Order regarding whether consequences should be imposed. Suspending Astral’s ability to market to and enroll customers is necessary to ensure customers are not harmed in the interim while the Commission considers Astral’s response and determines whether to impose consequences, including possibly revoking Astral’s eligibility to operate as an ESCO in New York State," the PSC said

"Accordingly, Astral is prohibited from marketing to and enrolling customers until the Commission orders otherwise," the PSC said

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