PSC Staff Warns Retail Suppliers That Use of Fraudulent Caller ID, Failure to Identify Agent May Lead to Prohibition from Market

Staff of the New York PSC have issued an email to all ESCOs warning ESCOs that the use of fraudulent caller ID by them, or their agents, may result in a Staff recommendation that the ESCO be prohibited from selling energy in the state.

In an email obtained by EnergyChoiceMatters.com, New York PSC Staff informed ESCOs that the Department is receiving "numerous and frequent" complaints from customers, utilities, ESCOs, the media, and high level PSC employees regarding, "deceptive ESCo marketing practices on telemarketing to residential customers."

"Generally, the display on the telephone is a non-working telephone number or reads something like 'Energy Assistance', 'Discount Energy' or in some cases a utility name," Staff said.

"If the call is answered, the ESCO agent explains that the customer may qualify for discounted energy and asks the customer for his or her account number in order to determine if they qualify. When the customer asks questions - like who is the ESCO - the call is terminated," Staff said.

"A failure to identify yourself is a deceptive marketing practice, among other things. The practice must end (be 'cured') immediately," Staff informed ESCOs.

"We have been unable to identify the specific ESCOs that employ these deceptive practices with these third-party organizations, but we are getting close," Staff warned.

"When we do identify the ESCO or ESCOs involved, we may recommend that they be prohibited from selling energy in New York. You are responsible for what your agents are doing. You need to monitor them like you monitor your own employees," Staff said.