Energy Choice
                            

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Stakeholders Reach Consensus on Some D.C. Retail Energy Rules; Suppliers Maintain That Double Verification of Sales Remains a "Market Killer"

January 1, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Stakeholders have reached consensus on certain proposed retail electric and natural gas marketing rules in the District of Columbia, but unsurprisingly parties did not reach consensus on a proposal from the PSC that retail energy sales be subject to two separate forms of verification, a proposal which retail suppliers continue to call a "market killer."

EnergyChoiceMatters.com first reported in October 2014 that the proposed D.C. rules would require double verification for most rules (click here for story)

In an update to the PSC concerning stakeholder discussions, retail suppliers said that the proposed double-consent requirements, "is the most important aspect of this proceeding."

Suppliers said that these double-consents will: (1) lead to customer confusion; (2) diminish the credibility of suppliers by treating them differently from other sellers in the marketplace; (3) increase suppliers’ costs of transacting business in the District and therefore lead to less attractive pricing options for customers; and (4) discourage energy suppliers from doing business in the District. "In other words, these provisions are market-killers and are not in line with the Commission’s statutory mandate to create and foster competitive retail energy markets," suppliers said

Among the most notable items on which there is stakeholder consensus is accelerated switching timelines.

Specifically, stakeholders agree on provisions that would allow electricity customers to switch energy suppliers within three business days from the date that the utility receives the enrollment transaction from the supplier.

Stakeholders agree on a process for accelerated natural gas switching. Under the current rules, a supplier must submit new enrollments to the utility at least 15 days before the end of the month to enroll a customer by the beginning of the following month. Under the stakeholder consensus, that time period would be reduced to seven days before the end of the month.

Other consensus items include:

• Greater up-front disclosures made by the energy supplier to the prospective customer to ensure that the customer understands the product that he or she is choosing.

• Additional consumer protections applicable to energy suppliers’ door-to-door solicitations, including requirements such as the presentation of an identification badge, mandatory representations by the solicitor, and the inclusion of a Buyer’s Right to Cancel in the contracting documents for door-to-door sales.

• Additional consumer protections applicable to energy suppliers’ telephone solicitations, including mandatory representations to be made by the caller at the outset of the conversation, as well as clarity regarding the supplier’s use of a third party verification for telephone sales.

• Provisions that clarify a customer’s right to rescind a contract within three business days, including communicating that right to customers and also clarifying when the three-day clock begins for a sale.

Notably, the consensus rules would limit in-home solicitations to the hours between 9 a.m. and sunset. Telephonic solicitations would be limited to between the hours of 9 a.m. and 9 p.m.

RM-2014-03 and RM-2015-46

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