The Baltimore Sun published an editorial calling for a "full investigation" of retail energy suppliers and the market.

The Sun's editorial stated, "The PSC must do a better job of investigating these companies accused of bad business practices and ban more of those who can’t seem to follow the rules and appear determined to prey on unsuspecting customers, many of them low-income and already struggling to pay their bills. A full investigation should be conducted on whether these companies are targeting the most vulnerable."

The Sun's editorial stated, "Perhaps, its [sic] time for the General Assembly to call for a study into whether deregulation has had the intended impact of increasing competition, expanding consumer choice and lowering utility prices."

Among other reforms, the Sun proposed that contracts from retail suppliers should be required to, "show how much or less bills will be."

"Lawmakers should also prohibit these third parties from price gauging [sic]," the Sun's editorial said

The Sun cited previously reported data concerning pricing under retail supply versus SOS. "Reports last year by the Office of People’s Counsel and the Abell Foundation found that deceptive marketing tactics had landed people with companies that charge them 50 to 75% more than they were paying prior. From 2014 to 2017, Maryland households paid tens of millions of dollars more per year in aggregate to third-party electricity suppliers — or about $255 million more in all than if they had stayed with their previous company," the Sun's editorial said

Certain characterizations in the Sun's editorial drew a sharp rebuke from PSC Chair Jason M. Stanek.

In a response published by the Sun, Stanek wrote, "The Sun’s editorial ... badly misconstrues the state of retail energy supply in Maryland and ignores the Public Service Commission’s efforts to police bad actors and enforce the law in a competitive marketplace where customers can choose their energy supplier."

Stanek wrote, "Contrary to the statements made in the editorial, the Maryland Public Service Commission initiated all of the complaints currently under investigation, not the Office of People’s Counsel. The PSC is constantly monitoring the market with additional cases under internal investigation. This year, the PSC took decisive action against a gas supplier that engaged in unlawful conduct. The PSC revoked that supplier’s Maryland license, levied a record-breaking, half-million dollar fine and ordered refunds to customers."

Stanek wrote, "The Sun improperly suggests that practically all energy suppliers are out to scam the public and should be viewed with suspicion. This is simply untrue. The majority of retail energy suppliers are legitimate businesses that serve more than a half-million residential utility customers in Maryland. The Commission is not slowing down and plays an important role beyond simply enforcement. Early next year, we will continue our efforts to educate customers by launching an enhanced online marketplace tool to assist those who wish to shop for an electricity supplier."

See the full op-ed and response at the links below:

Sun Editorial

Stanek Response

Tags:
Maryland   Sales & marketing   Electric choice   Complaints  

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