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Final Order Drops Requirement For Suppliers To Offer "Reciprocal" Cancellation Methods (Suppliers Not Required To Accept Cancellation Via Text)

December 31, 2015

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

A final Connecticut PURA decision concerning communication methods that retail suppliers are required to offer to customers for receipt of various notices, and the mechanisms through which suppliers must accept rescissions, would only require suppliers to offer two (rather than the original five) methods of communication for customer notices, and would drop the requirement that suppliers must accept rescissions through the same method in which customer notices are communicated to customers

As previously reported, in the November 2014 decision, PURA ruled that retail suppliers must offer customers the ability to select to receive certain statutorily required notices from the supplier through all of the following methods: (1) United States mail, (2) electronic mail, (3) text message, (4) an application on a cellular telephone, and (5) a third-party notification service, which has been submitted to the Authority for approval.

Retail suppliers had argued that PURA erred in interpreting the statutory language in requiring suppliers to offer customers a choice from all five of the listed methods

In a final order on reconsideration, PURA said that statute does require that the customer shall be given a choice of communication methods, but said that suppliers must only offer customers a choice between receipt of notification by either U.S. Mail or email. Suppliers will not be mandated to offer customers a choice of receiving notices via text message, an application on a cellular telephone, or a third-party notification service

U.S. mail will be the default method of notification if a customer fails to make a selection. "Suppliers may offer additional options to distinguish themselves in the retail marketplace," PURA said

Additionally, PURA said that a Mobile Web Interface (MWI) may be used as a customer notification option in lieu of a cell phone app, so long as each MWI accomplishes the same goal of unique and secure individual customer notifications.

Furthermore, in its original November 2014 decision, PURA had required that suppliers must allow customers to cancel [meaning rescind in this case] service agreements by email, text, telephone and United States mail

Retail suppliers objected to such directive, particularly noting the difficulty and expense associated with accepting cancellations via text message.

On reconsideration, "the Authority will not require suppliers to implement the four methods outlined above as options to cancel their contract."

"Text messaging can limit a supplier’s ability to collect important customer account information, can be costly to install and maintain, and can delay rescission beyond the three-day window. Such delay could harm market participants. However, were a supplier to implement an accurate two-way text message notification and cancellation system, it could dramatically streamline customer-supplier communication timelines and possibly distinguish itself in the market. The Authority continues to believe that two-way communication is the optimal method of notification and cancellation. However, the Authority will not mandate two-way communication of every supplier at this time. The Authority strongly encourages suppliers to include a customer service telephone number in their text notifications, at which customers can reach the supplier for full notification details," PURA said

The final order also modifies the requirement that suppliers maintain a Connecticut-specific website by allowing suppliers to meet this requirement by providing Connecticut-specific information through one or more pages within a parent or multi-state website. "Through customer selection, zip code filtering, or some other method, suppliers must make Connecticut-specific and Connecticut-only information available to the customer," via such multi-state websites, PURA said

PURA's final order also drops an earlier requirement that suppliers must provide to the customer an exact start and end date for service. "The Authority acknowledges that it is difficult to determine the exact date on which a customer’s meter will be read which in turn makes it difficult to provide the beginning date and expiration date of the contract. Based on the evidence, the Authority directs suppliers to inform customers that their contract will begin on the meter read date following acceptance of an enrollment by the EDC. Such description should be incorporated into all contracts, terms and conditions, and enrollment related customer communications," PURA said

PURA stressed that, "As part of the enrollment process, and to improve the customer experience, suppliers should request the customer’s meter cycle, and use the information to discuss the likelihood that an enrollment will be processed in advance of, or after, the customer’s next scheduled meter reading. Suppliers know when each enrollment will be submitted to the EDC for processing and understand the EDC/Supplier Electronic Data Interface process. The EDC’s meter reading schedule can be used to determine the number of business days necessary in advance of a customer’s next scheduled meter reading for an enrollment to be timely submitted. Suppliers therefore should be able to engage in a meaningful discussion to better inform customers about this issue. This dialogue is intended to provide consumers with more information about the process and is meant to improve, not harm, the market."

Docket 13-07-18RE01

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