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New York Governor Signs Bill Requiring Side-by-Side Comparison Of ESCO, Default Service Pricing On Bills
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New York Governor Kathy Hochul has signed S3876 which, among other things, requires that any bill to a "customer" for ESCO service, including utility consolidated bills, shall include on the first page a "side-by-side" comparison showing both the "price" charged by the ESCO, and the default service price which would have applied in such billing period
While S3876 as drafted uses the term "price" rather than "cost", it is understood that S3876 requires a comparison of monthly costs (amounts due), and not just rates
Such comparison shall additionally and separately include an itemized list of prices charged by the ESCO for any energy-related value-added products provided by the ESCO
S3876 adopts such requirements through amendments to section 349-d of New York's general business law, which defines "customer" as, "any person who is sold or offered an energy services contract by an ESCO (i) for residential utility service, or (ii) through door-to-door sales". As such, the term "customer" in S3876 uses this definition
S3876 also requires that, every 12 months, an ESCO shall provide to a customer a statement comparing the ESCO "price" charged over the prior 12 months, and the default service price that would have applied over such period
This annual comparison, "shall convey such information in a manner that unambiguously conveys whether the customer is saving money or paying a premium for service from the ESCO over such period," the bill provides
Separately, Gov. Hochul also signed a broader consumer protection law (S8416) that prohibits "unfair" and "abusive" tactics, and which also expands protections to small businesses and non-profits, in addition to consumers (residential customers)
S8416 provides that "unfair" and "abusive" acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service are declared unlawful (this prohibition was previously limited to "deceptive" acts)
S8416 provides that, "An act or practice is unfair when it causes or is likely to cause
substantial injury which is not reasonably avoidable and is not
outweighed by countervailing benefits to consumers or to competition.
The term 'substantial injury' as used in this subdivision shall have the
same meaning as the term 'substantial injury' in the federal trade
commission act, 15 U.S.C. Section 41 et seq., provided that the substantial injury of a person or persons other than consumers shall also be
deemed a 'substantial injury' for purposes of this section."
S8416 provides that an act or practice is abusive when:
(i) it materially interferes with the ability of a person to understand a term or condition of a product or service; or
(ii) it takes unreasonable advantage of:
(A) a lack of understanding on the part of a person of the material
risks, costs, or conditions of a product or service;
(B) the inability of a person to protect such person's interests in
selecting or using a product or service; or
(C) the reasonable reliance by a person on a person engaging in the
act or practice to act in the relying person's interests.
S8416 provides that an unlawful act or practice (as described above) is actionable by
the attorney general regardless of whether or not that act or practice
is consumer-oriented
The New York Attorney General said that, among other things, S8416 would combat companies that, "take advantage of consumers with limited English proficiency and," and companies that, "obscure pricing information and fees".
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Broader Law Banning "Unfair", "Abusive" Practices Also Signed (Also Extends Protections To Small Businesses)
December 22, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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