Energy Choice
                            

Matters

Update: PSC Suspends ESCO's Ability To Market To, Enroll Customers For At Least One Year, Issues Written Order Detailing Decision

March 19, 2018

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

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

The suspension of Flanders Energy LLC to market to and enroll new residential and non-residential customers in New York shall be in place for at least one year, and continue until the PSC orders otherwise, the New York PSC directed in a written order imposing the suspension which was first announced last week

In its written order, the PSC recited allegations that had first prompted an order to show cause to be issued against Flanders Energy (see details on the allegations here).

Additionally, the PSC stated in its March 16 order suspending Flanders' ability to enroll customers that, "even though Flanders states that it suspended its marketing and enrollments as of May 2017, Con Edison reports, in response to Staff inquiry, that Flanders has in fact enrolled hundreds of new customers since June of 2017."

"Flanders’ continuing non-compliant conduct and continued enrollment of customers even though Flanders claimed it suspended all marketing and enrollments calls into question whether the Department, this Commission or New York State consumers can rely on the information that Flanders provides," the PSC stated in its March 16 order

"Since Staff issued the NOAF in April of last year, almost 50% of Flanders’ residential and commercial customers dropped the ESCO’s service as of December 2017. Although Flanders reported in its First Response, dated October 6, 2017, that it would send a letter to each of its customers informing them that they may have been improperly enrolled with Flanders and that if the customer wished to modify their commodity supply arrangements the customer should contact Flanders, it did not send the letter until January 17, 2018, over three months after it committed to do so," the PSC stated in its March 16 order

"Once customers received the letter, Staff reports a significant increase in the number of complaints to the Department about Flanders and its marketing and enrollment practices. Specifically, from January 21, 2018 through February 26, 2018, the Department received 23 complaints regarding Flanders. The majority of customers explained that they were slammed, were unaware that they were being served by an ESCO and they wished to be returned to their default utility service. That so many of the customers so consistently recounted the same issues is indicative that Flanders enrollment practices were severely deficient," the PSC stated in its March 16 order

"Moreover, the complaint case files demonstrate that Flanders typically returned the customer to the utility but did not always or consistently refund the customer for any charges in excess of what the customer would have paid to its incumbent supplier, if the customer had not been switched to Flanders without the customer’s authorization. Such a resolution does not meet the requirements of UBP §5.K.2, which mandates refunding slammed customers so that the customer pays no more than it would have paid to its incumbent provider," the PSC stated in its March 16 order

"Rather than complying with the UBP requirement, Flanders’ responses to the customer complaints show that it does not fully refund the overcharges to customers that claimed they were slammed, unless the customers specifically ask for any 'overcharges' that may have been billed to the customer," the PSC stated in its March 16 order

"In its responses to the Show Cause Order, Flanders did not dispute the findings set forth in the NOAF or that Order. Flanders acknowledged that it had enrolled customers without authorization, although it asserted that the enrollments were the result of sales agents that worked for its third-party marketer that has since been terminated. Flanders also acknowledged that it is ultimately responsible for the actions of third party marketers it contracts with. Flanders further committed to (1) take corrective measures to ensure that all future customers are enrolled in accordance with the standards set forth in the UBP and (2) respond to complaints received by the Department as was directed in the NOAF and Show Cause Order. While Flanders’ comments and commitments acknowledge its transgressions, and indicate a desire to meet its obligations, Staff reports that Flanders continues to provide insufficient information and documentation when responding to complaints received by the Department. This information is essential to provide Staff with an adequate basis for assessing Flanders’ future compliance with the UBP. To this end, in addition to complying with the requirements of the consumer complaint process set forth in 16 NYCRR Part 12, when a customer complaint is sent to it by the Department, Flanders is directed to report additional details to the Department regarding each existing and future customer complaint sent to it by the Department," the PSC stated in its March 16 order

"[B]ased on Flanders’ failure to provide the additional information set forth above in response to customer complaints, and its non-compliance with the refund requirement of UBP §5.K.2, further actions are warranted to protect consumers in New York State. Accordingly, Flanders is required to suspend its marketing to and enrolling of residential and non-residential customers throughout New York State, until the Commission orders otherwise. To ensure that Flanders does not enroll any new customers during this period, the Secretary shall provide notice of this Order to Con Edison, which is the only utility in whose service territory Flanders currently operates," the PSC stated in its March 16 order

"[I]f Flanders again fails to comply with any facet of the UBP, the PSL, or the Commission’s regulations and orders, the Commission will seriously consider revoking Flanders’ eligibility to operate as an ESCO in New York State, or imposing any other consequences the Commission may deem appropriate in light of the circumstances and Flanders’s past performance. Should Flanders desire to restart marketing to residential and non-residential customers, it may petition the Commission to do so not less than one year after the date of this Order," the PSC stated in its March 16 order

Case 17-M-0415

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Director, Retail Energy Supply & Pricing -- Retail Supplier -- Houston
• NEW! -- Sales and Channel Partner Manager -- Retail Supplier
• NEW! -- Sr. Energy Analyst -- Broker -- DFW
• NEW! -- Commercial Energy Advisor
• NEW! -- Energy Broker
• NEW! -- Business Development Manager - Texas, Retail Provider
• NEW! -- Account Manager, Retail Energy -- DFW
• NEW! -- Operations Manager -- Retail Supplier
• NEW! -- Business Development Manager - Northeastern US, Retail Supplier
• NEW! -- Senior or Principal Quantitative Research Analyst, Energy Commodity/Risk