Connecticut Strengthens Marketing Standards for Third-Party Electric Suppliers

The Connecticut Public Utilities Regulatory Authority on May 6 issued a final decision adopting comprehensive marketing standards and sales practices for electric suppliers. The new standards are designed to ensure that customers choosing third-party suppliers have access to accurate information to make educated decisions.

The standards apply to switching practices, solicitations and renewals, hiring and training of sales representatives, and door-to-door sales and telemarketing practices. The decision also establishes a disclosure statement, requiring promotional materials aimed at residential customers to provide the highest and lowest rate charged by the supplier as part of a variable rate offer in each of the preceding 12 months.

Under the new rules, competitive suppliers must record all telemarketing and door-to-door marketing calls. Marketing content must provide certain information that enables customers to comprehend the final result of the call and outbound marketing must display the suppliers’ ID and contact details. Third-party-verifications must clearly explain the details of contracts that customers enter into with suppliers. Suppliers are required to train and monitor marketers and self-report violations to the agency.

The new standards stem from investigations that revealed issues in the third-party electric supplier market. Regulators found that suppliers need to better monitor their marketing and take expedited action to prevent systemic violations. In addressing customer complaints, the agency found there it is necessary to listen to the recording of the transaction to ascertain violations. Supplier marketing was found to frequently mis-characterize or mis-state standard offer service. Further, investigations revealed a common pattern of marketing violations, including improper third-party verifications and failure to properly disclose standard service rate.

All suppliers must implement and comply with the new standards from Aug. 6.