What's happening
This bill requires energy service companies to obtain express customer consent for contract changes, including price changes, and mandates clearer disclosure of pricing and comparison information during contract renewals.
Why it matters
Strengthens consumer protection. by requiring that energy service companies (ESCOs) obtain explicit customer approval before making any material changes to contracts, especially regarding price changes or switching between fixed and variable pricing—helping prevent “surprise” billing or unfavorable terms being imposed without notice.
Limits automatic renewals with unfavorable terms. by prohibiting ESCOs from charging early termination or cancellation fees if customers haven’t expressly consented to new material terms, ensuring customers aren’t financially penalized for rejecting or not agreeing to new conditions.
Mandates greater transparency at renewal. by requiring ESCOs to provide clear, written notice with specific details—including both the current and proposed renewal price, the local utility’s price, and guidance on how to compare bills—empowering customers to make informed choices and easily assess if switching providers or plans is in their best interest.
Potentially increases competition and accountability. among energy providers by making pricing and contract changes more visible and requiring direct customer engagement, which could encourage ESCOs to offer more competitive and customer-friendly terms.
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Who cares
Headline styles
Require Energy Price Transparency
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 55
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Clear Energy Pricing
Assembly Floor Calendar · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1046
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to changes in energy service pricing
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 6 and 7 of section 349-d of the general business law, as added by chapter 416 of the laws of 2010, are amended to read as follows:
6. No material change shall be made in the terms or duration of any contract for the provision of energy services by an ESCO without the express consent of the customer. A change in price or a change to or from fixed or variable pricing shall be deemed to be material. This shall not restrict an ESCO from renewing a contract by clearly informing the customer in writing, not less than thirty days nor more than sixty days prior to the renewal date, of the renewal terms and of his or her option not to accept the renewal offer; provided, however, that no fee pursuant to subdivision five of this section shall be charged to a customer whose express consent has not been obtained to any change in material terms and conditions, or who objects to such renewal not later than three business days after receiving the first billing statement from the ESCO under the terms of the contract as renewed. The public service commission and the Long Island power authority may adopt additional guidelines, practices, rules or regulations governing the renewal process.
7. In every contract for energy services and in all marketing materials provided to prospective purchasers of such contracts, all variable charges shall be clearly and conspicuously identified. In any notice regarding contract renewability, the provider shall disclose the following information as it exists at the time of such notice: (i) the price charged for energy services; (ii) the price it proposes to charge upon
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03756-01-7
S. 1046 2
renewal; (iii) the price that is charged by the customer's distribution utility; and (iv) information notifying the customer how they may compare past bills with what they would have been charged had they received energy services from their respective distribution utility, including, the internet address of any bill calculator offered by such customer's distribution utility's website.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to changes in energy service pricing
Purpose or general idea of bill
The purpose of this bill is to protect consumers from unknown price increases to their energy bills.
Summary of specific provisions
Section 1. Would declare a change in the price or type of price for energy service to be a "material" change which would require the consent of the customer. It would change the law to require consent from any customer whose terms or conditions would undergo a material change. The bill would also include a provision that the energy provider disclose information about the current price of services, any proposed price changes, distribution prices, and information to inform the customer how they may view their past bills if there is to be a material change.
Section 2. Sets the effective date.
Justification
Recent reports state that New York's energy service companies charge some of the highest residential energy costs in the United States. With that in mind it is essential that consumers have the ability to make informed choices when it comes to signing a contract for energy services. This legislation is intended to insure that New Yorkers have full disclosure to any material change in price or in contract terms that may be proposed by their energy provider. In this manner it can be ensured that the consumer consents to the changes.
Prior legislative history
S.6798/A.9032 of 2016; referred to Consumer Protection
Fiscal implications
None to the State
Effective date
This Act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.