|
|
|
|
|
Regulator's Staff Revises Proposed Automatic Renewal Protections, Initially Had Proposed Auto-Renewal Ban
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Staff of the Massachusetts DPU recently presented a revised proposal to protect retail energy customers under contract renewals
As previously reported, Staff initially proposed to ban auto-renewals entirely. Under this original proposal, all renewals would require affirmative consent and a re-enrollment, with the re-enrollment accomplished only through the EnergySwitch MA site. Staff did, in its initial proposal, suggest a price cap for auto-renewals as a potential alternative
See full details of Staff's original proposal here
The DPU's retail market review proceeding (19-07), in which Staff made the proposal, was opened to address the residential market, though an original Notice of Investigation specifically asked whether the previous proposals under consideration should also apply to the small C&I market. At a recent work group meeting, Staff's presentation itself did not explicitly state that the revised renewal proposal is limited to residential customers
Staff at a recent working group meeting said in a presentation that, "While staff’s objective remains unchanged, we are swayed by stakeholder comments that alternate means of achieving the objective may be more appropriate."
As presented at a May 5 meeting, Staff's revised proposal would provide that, for customers not on a voluntary renewable product or a time-varying rate (TVR), automatic renewals would be permitted under the condition that the renewal price shall not exceed the basic service price in effect during the first month of the renewal.
For customers on either a voluntary renewable plan or a TVR plan, Staff proposed that the customer must "respond affirmatively" to auto renewal notification(s) in order for the supplier to continue service to the customer at the quoted renewal price without the renewal price being subject to a price cap. Staff's presentation slides did not further explain in what manner customers could "respond affirmatively" -- whether such response would require a full re-enrollment under the mechanisms permitted for initial enrollments (and, to the extent all initial enrollments are required to be completed through Energy Switch MA, whether this requirement would apply to renewal re-enrollments), or whether there would be a more streamlined mechanism for affirmative consent for renewals (emailed online link/check box, mailer & return postcard, etc.)
For customers on either a voluntary renewable plan or a TVR plan, if the customer does not respond affirmatively to renewal notices, automatic renewal would be permitted only under the condition that the renewal price shall not exceed the basic service price in effect during the first month of the renewal
In all auto-renewal cases, there would be no early termination fee permitted for an auto-renewal product
In all cases, suppliers would have the option to renew customers under the conditions listed above for the applicable product type, or to drop the customer to default service
Staff will provide further details concerning its revised auto-renewal proposal in a subsequent communication to the working group
Docket 19-07
Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
May 8, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
|
|
|
|
|