Proposed Rule Would Require "Informed" Consent to Enter Into Retail Energy Contract

Adding one word to the definition of slamming under the District of Columbia Municipal Regulations could drastically change retail energy contracts in the District.

As part of a series of changes to the Consumer Bill of Rights (click here for related story today), the D.C. PSC has proposed modifying the definition of slamming to include a requirement for "informed consent".

The new definition of slamming would be:

"Slamming (for Energy Suppliers): the practice of switching, or causing to be switched, a Customer's natural gas or electric supplier Account without the express informed consent of the Customer."

In comparison, the current definition of slamming is:

"Slamming (for Energy Suppliers): the practice of switching a Customer's natural gas or electric supplier Account without the express consent of the Customer."

Although there may be a body of precedent generally in contract law regarding informed consent, the newly proposed rule revisions are silent regarding how informed consent is determined with respect to energy contracts in D.C., and whether completely complying with the provisions of the Consumer Bill of Rights would establish any rebuttable presumption of informed consent.

However, the proposed rule contains the current provision that, "In the event of a dispute over the existence of a Contract, the Energy Supplier shall bear the burden of proving the Contract's existence."

Click here for related story today on newly proposed marketing and contracting requirements in DC

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