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New York Adopts Order Requiring TPV For Additional Sales Channel

January 19, 2018

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

The New York PSC has adopted an order with changes to the Uniform Business Practices that now require ESCOs, for residential and small non-residential customers, to conduct, "an independent third party verification," for any sale resulting from a scheduled appointment, in addition to door-to-door and telephonic sales

The revised UBPs further describe that, "Use of either an Independent Third Party or an Integrated Voice Response system to obtain customer authorization is required for any telephone solicitation or sales resulting from door-to-door marketing or appointment."

ESCOs must now ask as part of the TPV, "Do you participate in your utility’s low-income assistance program?"

The PSC declined, at this time, to extend the TPV requirement to other sales channels, such as direct mailer or electronic enrollments, as originally proposed

"The Commission acknowledges that the addition of TPV requirements for electronic and direct mailer enrollments is not appropriate at this time," the PSC said

In its final order, the PSC ultimately dropped a proposal that would have required the ESCO, during its marketing pitch, to advise the customer to check the utility's price as a comparison. The PSC noted that this proposal is being addressed in ongoing proceedings.

The revised UBPs restrict the ability for an ESCO to act as the customer's agent, to prohibit an ESCO from seeking to use such authority to block switches or take related actions.

A customer may authorize an ESCO to act as the customer’s agent (ESCO agent) in establishing a new delivery account for distribution utility service. The customer’s ESCO Agent is not authorized to cancel a pending enrollment, an enrollment with a different ESCO or utility, or place and/or lift utility account blocks where a customer has authorized a change in provider, the new UBPs provide

The revised UBPs also only allow assignment of an ESCO customer contract where the contract specifically allows for such action and customer notice is provided. Previously, assignment was allowed if the contract allowed assignment or the customer was provided notice. In assignments, the ESCO must provide an opportunity for each customer to choose another ESCO or return to full utility service.

An ESCO shall provide a written notice no later than 30 calendar days prior to the assignment or transfer date to each customer and distribution utility.

Other revisions were meant to update the UBPs to reflect current law and requirements.

Most notably, while this provisions has been required under HEFPA, the UBPs now explicitly state that, "Every ESCO shall offer residential customers a voluntary budget billing or levelized payment plan for the payment of charges. The ESCO is responsible for determining the budget bill amount and must evaluate each budget billed account on a quarterly basis for conformity with actual billings. Each such plan shall provide that bills clearly identify consumption and state the amounts that would be due without levelized or budget billing."

The budget billing requirement and attendant ESCO obligations apply even where the ESCO uses utility consolidated billing.

Other changes to reflect new laws include a UBP modification that prevents energy providers from charging a contract termination or early cancellation fee in the event of a customer's death.

Additionally, Green Mountain Energy Company (Green Mountain), filed a petition on October 7, 2016 requesting amendments to Sections 10.C.1.b.1 and 10.C.1.d to eliminate an ESCO representative’s full name on the UBP-required identification badge. To protect the safety and privacy of ESCO agents when interacting with prospective customers, Green Mountain proposed amending these sections to only display the representative’s first name and a unique employee identification number. The PSC adopted this change

The UBPs also now include requirements related to the PSC's clean energy and ZEC requirements

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