NEM Working on Self-Policing, Potential "Seal of Approval" for Retail Energy Industry

The National Energy Marketers Association announced that its members are working on examining and developing the next steps, after NEM's National Standards of Conduct, to ensure a positive energy consumer shopping experience, including potentially self-policing mechanisms and/or a NEM seal of approval.

"The extreme market conditions that have recently been experienced are of the utmost concern for our members and their customers. We are working to understand the various causes that could be at play as well as potential solutions to lessen the impact on consumers," said Craig Goodman, NEM President.

"Relatedly, our members decided to proactively pursue next steps for the implementation of NEM’s National Standards of Conduct that was unanimously adopted last year. A member subcommittee was formed at the [recent annual] meeting to examine and make recommendations on next steps that could include self-policing mechanisms, a certification process, training programs and/or development of a NEM seal of approval. NEM and its members are committed to voluntarily improve the quality of the marketplace to ensure consumer value and satisfaction,” said Goodman.

During a recent annual executive session, NEM members identified the following policy priorities for 2014:

• "Support the transition of utilities from the competitive commodity merchant function into a new role as the Utility of the Future, focused on the core competency of ensuring the reliability of the delivery infrastructure;

• "While utilities remain in the default service role, ensure the proper and timely allocation of costs to the utility default service price so that consumers are not misled by an understated or overstated utility Price to Compare;

• "Promotion of retail energy industry ethics and integrity, including NEM’s National Standards of Conduct and next steps to promote industry compliance; and

• "Provision of consumer protection guarantees and education to ensure consumer shopping occurs in an informed, timely and consensual fashion."