National Energy Marketers Association to Release National Marketing Standards of Conduct in Advance of NARUC

The National Energy Marketers Association will release a National Marketing Standards of Conduct for the sale of retail energy in advance of the winter National Association of Regulatory Utility Commissioners meeting, which begins this Sunday.

NEM's formal National Marketing Standards of Conduct will be publicly released in the next few days at NARUC. It will be available on the NEM website [energymakreters.com] when released.

"The Social Compact that defined the 20th Century Obligation to Serve is evolving into a new 21st Century Opportunity to Serve," NEM said.

"Utilities historically are 'Obligated to Serve' consumers in exchange for a guaranteed return of and return on invested capital. Today, in many states, Energy Marketers compete for the 'Opportunity to Serve' consumers of all sizes, incomes and load shapes, with no guarantees of profits, market share, or economies of scale. Implicit in today's new Opportunity to Serve is the ability to compete with the best service, the best price, the best technologies, or any combination thereof," NEM said.

"No regulatory mandate to serve is needed to incent marketers to compete. NEM members are honored to serve consumers and to endorse and implement these National Marketing Standards of Conduct, as well as ethical business practices that protect the consuming public," NEM said.

"Billions of dollars have been invested in good will, trade names, and business reputations. In a competitive energy market there is no profit in a tarnished reputation, ill will, or poor conduct," NEM said.

"The bottom line is that the energy consuming public needs more competitive energy and technology choices. And, the new Energy Services and Technology Industry is honored to serve this public need. It is also in the public interest to transition utilities out of competitive markets in order to free their resources to invest in a reliable 21st Century infrastructure," NEM said.

While specifics regarding the National Marketing Standards of Conduct will be available upon formal announcement, the standards generally address prohibitions on false, misleading or deceptive conduct, and address required information and contract disclosures during energy marketing.

Notably, the National Marketing Standards of Conduct will include specific standards for network and relationship marketing companies and agents.

In particular, the Standards of Conduct require network marketing companies to establish and maintain, "a clear channel of accountability for the actions of [their] agents."

All members of NEM endorse a zero tolerance policy for any fraudulent, illegal, or unethical conduct of any employee or agent, NEM said.