Connecticut Attorney General William Tong and Consumer Counsel Elin Swanson Katz urged legislators to pass House Bill No. 7155, An Act Concerning Consumer Protections for Customers of Electric Suppliers, which includes various new consumer protections, including a proposed ban of 'auto-renewals' of third-party electric supplier contracts with residential consumers (by requiring affirmative consent).

See RetailEnergyX.com's exclusive analysis of the bill's provisions in our prior story here

House Bill No. 7155 proposes a requirement that residential customers must provide affirmative consent via a written or electronic signature to renew a contract with an electric supplier. If a residential customer does not provide affirmative consent to a supplier’s contract renewal, the bill requires the customer to be placed on the electric utility standard service rate when the contract expires.

"Electricity is far too expensive in Connecticut as it is, and no one should be tricked into paying even more. These changes will make it harder for bad actors to use teaser rates to lure and lock consumers into over-priced contracts. Putting an end to automatic renewals and enacting new safeguards against aggressive and misleading marketing are important steps to curb abuse in this industry," said Attorney General William Tong.

"One of the most common complaints I hear is that a consumer signed a contract with a low teaser rate for electricity, but then the contract automatically renewed with an escalating rate, sometimes for years at a time. The consumer then finds, when he or she remembers to check the electric bill, that the rate has shot up, and so has the electric bill, sometimes doubling or even tripling the teaser rate," Consumer Counsel Katz said. "The affirmative consent feature safeguards consumers by requiring either their written or electronic signature to renew a contract with an electric supplier. This allows the savvy consumers who read their bills closely each month to 'shop' the market, while preventing those of us who don’t have the time, inclination, or expertise to follow electric rates that closely to avoid these auto-renewals that can costs hundreds or even thousands of dollars a year in excess electric costs. There is no downside to affirmative consent—even the most diligent consumer may miss a renewal notice when life gets hectic," said Consumer Counsel Katz.

In addition to the affirmative consent provision, House Bill No. 7155 also mandates that electric suppliers record the entirety of their marketing interactions with consumers (both in-person and telesales) and perform criminal background checks on any marketer conducting door-to-door solicitations.

The bill also allows the Public Utilities Regulatory Authority to order electric suppliers to pay restitution to their customers upon findings of illegal electric supplier activity.

Tags:
Connecticut   Sales & Marketing  

Comment on this story


ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com
TPV-SALES-EXECUTIVE -- Back Office Provider -- Other
Sr-Market-Risk-Analyst -- Wholesale Supplier/Trader -- New York - New York City Metro
Energy-Regulatory-Specialist -- Other -- Other
More Stories on RetailEnergyX.com:
Former Pa. PUC Chair Cawley Recommends Banning, Or 'Reducing' Reliance On, Door-to-Door Sales
OCC: Customers On Retail Supply Paid $5 Million More Than Default Service In July
Settlement In Lawsuit Against Retail Supplier Nears Approval; PUC Case Continues
Report Names "Most Trusted REP Brands" In Texas
Federal Court Rules Pennsylvania Business Closure, Stay At Home Orders Are Unconstitutional