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Retail Suppliers Say Published Proposed Rules in Maryland Could Apply New Agent Requirements To Business Sales

January 12, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Proposed new supplier-agent requirements in Maryland as published in the state register could be interpreted as applying to sales to business customers, the Retail Energy Supply Association said in comments to the PSC on the proposed rules (RM 54)

Click here for background on the proposed rules

Among other things, the proposed agent rules would require agent qualification standards and training requirements, would establish parameters for door-to-door sales (such as identification and badge requirements), and would hold that a supplier, "is responsible for any fraudulent, deceptive, or other unlawful marketing acts performed by its agent in the conduct of marketing or sales activities on behalf of a supplier."

The text of the agent rule provisions do not specifically limit the provisions to residential sales, and RESA noted that, as published, "the rules could be interpreted to apply to both residential and non-residential customers."

"RESA’s understanding based on its consistent participation in each phase of this proceeding thus far is that these new Supplier Agent Relations rules were intended to enhance residential consumer protections ... it was never intended for these chapters to apply to sales to nonresidential customers. RESA is not aware of any discussions, at any time in this process (working group discussions, written comments, the hearings, etc.) where anyone even mentioned the possibility that these chapters would apply to non-residential customers," RESA said

"[B]y statute and the Commission’s current regulations, Maryland law reflects the policy decision that enhanced consumer protections are appropriate for residential sales, but are not needed for non-residential sales. As an example, the Residential Consumer Protection regulations in COMAR 20.53.07 (electricity) and 20.59.07 (natural gas) include significant protections for residential customers which are not included in the Nonresidential Consumer Protection regulations in COMAR 20.53.06 (electricity) and 20.59.06 (natural gas). Adopting the new Chapter 8 [agents] for electricity and natural gas, as written, would require retail suppliers to perform specific actions when selling to non-residential customers that are simply not needed in today’s non-residential market," RESA said

RESA noted that the agent regulations in newly proposed Chapter 8 build off of the existing residential consumer protection requirements in COMAR 20.53.07 (electricity) and COMAR 20.59.07 (natural gas) pertaining to door-to-door and telemarketing sales, marketing and advertising, mandatory contract terms, and so forth, suggesting that the intent was to limit the agent rule to residential service, despite such intent not being clearly codified.

RESA recommended that the proposed new agent requirements be clarified to apply only to sales to residential customers.

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