Consumer Advocate: PUC Should Keep, Share List of Bad Actor Brokers, Agents

Pennsylvania should maintain a list of bad actor brokers and agents in the retail energy industry, the Pennsylvania Office of Consumer Advocate said in comments to the PUC.

The OCA was commenting on several recent settlements (click here) with retail energy suppliers concerning alleged marketing violations.

The OCA noted that the issues prompting investigations of two suppliers appeared to involve independent brokers or sales agents. While the settlements correctly held the individual suppliers responsible for their agents' conduct, the OCA suggested further actions to protect customers.

In particular, OCA said that the fact that one of the suppliers later rejected 24 potential new agents, upon instituting new safeguards and operating procedures, "identifies a potentially significant problem with the use of independent brokers and contractors."

"The Commission may wish to consider establishing a mechanism that would alert all EGSs to information regarding possible fraudulent or deceptive sales practices by specific independent brokers or contractors. In this way, other EGSs that may be using these same independent brokers or contractors can ensure that their controls are sufficient to prevent a similar occurrence," the OCA said.