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Mass. Energy Agency: Customers Should Be Required To "Sign" Uniform Disclosure Statement To Contract For Retail Electricity Via Door-to-Door Sale

Suggests "Limits" On Transition To Variable Rate From Fixed Price

March 11, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Massachusetts Department of Energy Resources recommended to the Massachusetts DPU that a recommended disclosure form, "should be presented to and signed by every customer that elects to sign-up for competitive supply," via door-to-door sales

DOER's comments came in a DPU investigation reviewing the retail energy market and various customer protections, the opening of which had been first reported by EnergyChoiceMatters.com (see story here).

DOER's recommendation for the signing of the disclosure statement specifically came in response to a subpart regarding a question about door-to-door sales.

DOER stated in response to development of a door-to-door disclosure statement that, "The Department should consider approving a uniform disclosure form that would be developed jointly by the Attorney General’s Office ('AGO') and DOER, in consultation with other stakeholders, which will explain competitive retail choice, the options available to customers, provide them with a series of suggested questions to ask marketers about their product offering, and provide links to the Department’s Competitive Supply Website. The form should have the relevant Massachusetts government agency logos (i.e., Department, DOER, AGO) on it. The disclosure form should be presented to and signed by every customer that elects to sign-up for competitive supply. The required form could be developed in a process similar to that used for the customer disclosure form DOER established for SMART Program participants, which DOER, the AGO, and the Massachusetts Clean Energy Center jointly developed through a public stakeholder process."

DOER also recommended that the DPU should require competitive suppliers to inform their customers with monthly-priced contracts of, "material variations in price in advance of any change occurring, as the transition from a fixed price contract to a monthly variable rate may not be fully understood by customers."

"The Department should also explore, to the extent feasible, means for placing limits on such transitions until companies ensure customers are fully aware and understand the implications of the transition to monthly term, including any changes in rates," DOER said

D.P.U. 19-07

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