State: Large Number of Retail Suppliers, "Generating Revenues By Offering Consumers Little More Than Higher Prices"

The sweeping changes that the New York PSC has ordered in the retail market were adopted, "[i]n light of the apparent scarcity of energy-related value-added products and services available in the residential and small non-residential markets; the high complaint rates; and what appears to be a large number of active ESCOs generating revenues by offering consumers little more than higher prices," the PSC said.

Given these factors, "it is apparent that these markets are not providing sufficient competition or innovation to properly serve consumers," the PSC said.

The PSC blamed the "major weaknesses" in the residential and small non-residential retail energy markets, "due to the lack of accurate, transparent and useful information and marketing behavior that creates and too often relies on customer confusion."

The PSC also said that a Staff review found a large variation in the price charged for energy commodity services with no value-added attributes -- "a result that is inconsistent with a workably competitive market," the PSC said.

"Despite the large number of ESCOs, there seems to be almost no competitive pressure to innovate and provide value-added services or products to residential and small non-residential customers," the PSC said.

Related New York Stories Today:

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Here's What ESCOs Will Be Required to File, and What New York Will Disclose, in Reporting ESCO Historic Pricing

New York Bans Teaser Rates from Power to Choose; Requires ESCOs to "Guarantee" Customers Pay No More Than Power to Choose Pricing, Expands Site to Small Commercial

State Ends Retail Supplier Customer Referral Programs

Here's How All ESCO Mass Market Sales Pitches Must Start in New York, and What TPVs Must Cover

New York Asks If ESCOs Should Pay Annual Fee, Whether Eligibility Requirements Should Be Changed

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New York Explains Treatment of Current Low-Income Customers on ESCO Service, Now That Such Service Is Generally Prohibited

New York to Examine Supplier Consolidated Billing, Customer Acquisition Costs, Other Barriers to Value-Added Offerings

Case 12-M-0476