Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

NY State Agency: Long-Term Financial "Consequences" Of ESCO Contracts Require TPV-ing All Sales

May 16, 2017

Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Requiring independent third party verification of all mass market ESCO sales, including mailers and internet sales, is needed as such contracts may include, "long term financial consequences," the Utility Intervention Unit (UIU) of the New York State Department of State’s Division of Consumer Protection said in comments to the New York PSC

As was first reported by EnergyChoiceMatters.com, the New York PSC has proposed changes to the Uniform Business Practices to require all ESCO mass market sales be subject to an independent TPV (internet, mailer, etc.)

The Retail Energy Supply Association had said in comments that the proposed extension of the TPV requirement to all mass market sales is, "overly burdensome on both the customers and the ESCOs and is a dramatic departure from recent trends in consumer buying behaviors."

"Today we live in a world where consumers value speed and ease when transacting. Amazon’s surge in popularity is a perfect example of this trend with their next day and in some cases even same day delivery service," RESA said

However, the UIU contrasted customers' seamless purchase of "routine products that do not require a long term financial commitment," with ESCO contracts

"Consumers are often requested to agree to terms and services when responding to a direct mailer or purchasing a product through the internet. Many times the attestation is done in haste for routine products that do not require a long term financial commitment. However, consumers agreeing to a contract with an ESCO are agreeing to terms that may have long term financial consequences. Therefore, TPV for all ESCO enrollment provides the consumer an opportunity to hear and agree to the terms. This should help ensure that the consumer understood the contract," the UIU said.

RESA, however, noted in its comments that many customers purposely engage in people-less and paperless transactions when buying cell phones and even cars -- products which may similarly include long-term financial commitments.

"Customers purchasing ESCOs’ products are the same customers shopping on-line. Many enjoy the convenience and simplicity of engaging with their ESCO (or any product or service provider) without requiring human interaction. The same logic would apply to someone responding to a mailed solicitation. The response is fully voluntary and requires an affirmative action from the customer. A call a few days later to verify the action is confusing to the customer and might not be feasible given peoples’ work and travel schedules (which could have been the primary driver behind the on-line transaction or mailed-in response in the first place)," RESA said

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Pit Crew Analyst - Pricing, Contracting & Service Guru -- DFW / Irving
NEW! -- Sales & Marketing Manager -- Retail Supplier
NEW! -- Director, Regulatory Compliance -- Retail Supplier -- Houston
NEW! -- Sr. Energy Consultant
NEW! -- Manager of Regulatory Affairs -- Retail Supplier
NEW! -- Sales Support Specialist Energy Solutions -- Retail Supplier
NEW! -- Paralegal, Regulatory Affairs -- Retail Supplier -- Houston
NEW! -- EDI Transactions Manager -- Retail Supplier -- Houston
NEW! -- Director of Channel Sales -- Retail Supplier
NEW! -- Sales Manager -- Retail Supplier -- New York
NEW! -- Sales Manager -- Retail Supplier -- MA / NJ
NEW! -- Sales Agent -- Retail Supplier -- Multiple markets
NEW! -- Customer Retention -- Retail Supplier -- Houston

Email This Story

HOME

Copyright 2010-16 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search