State Creates New Guidelines to Protect Energy Consumers

If you've ever been approached by a door-to-door salesman selling a cheaper electricity rate and not sure if he's legit, new safeguards are now in place to protect you.

The Connecticut Department of Public Utility Control issued new guidelines this week that prohibits deceptive sales and marketing practices.

The impetus for such a change came from the DPUC after receiving complaints of aggressive and deceptive sales techniques. One particular case from 2009 involved Clearview Electric Inc., in which the DPUC fined the company $27,500 in civil penalties for engaging in inappropriate sales practices.

The new guidelines are "intended to facilitate the effective operation of a vigorous, dynamic, yet fair, competitive energy market," according to DPUC documents.

They include:

• Ensuring sales agents have the proper training and documentation to show it
• Complying with the "Do-Not Call" law
• If engaging in telemarketing, immediately provide the name of the agent, supplier and purpose of the call
• Conducting background checks on door-to-door salesmen and requiring them to wear uniforms and ID badges. They can only work during the hours of 10 a.m. to 6 p.m.

The guidelines prohibit:

• Suppliers from engaging in misleading or deceptive conduct or misrepresenting the rates or savings offered
• Changes to a contract without at least 30 days prior written notice to a customer

According to Donna Devino of the DPUC, the guidelines are voluntary but lawmakers are considering them this session as part of Senate Bill 1 — an act concerning the state's energy future.

She hopes the public knows the DPUC is looking out for them when it comes to shopping for energy choices.

"There is no doubt about it being very confusing and that's why we want to protect customers," Devino said. "We want to make sure (the suppliers) aren't doing anything that will have a negative affect on consumers."

Bob Blake, the senior vice president of regulatory affairs for MX Energy based in Stamford, said the new guidelines will be good for the market.

"It invokes some better protections to ensure the market will continue to be dynamic and viable and ultimately will keep the market stable," Blake said. "When you have an open competitive marketplace without the proper guardrails, you can get some bad actors in the marketplace and they can ruin the market for everybody.

"You have to make sure everyone is playing fairly in the marketplace while keeping the market still viable and dynamic and I think the commission has done a really good job of trying to find that balance point in this decision."

For more on the DPUC decision, click here.

For information on energy supplier choices, click here.