Does this situation sound familiar? Someone knocks on your door, telling you they can help save money on your energy bill if you just switch energy services companies. While some of these door-to-door salespeople are above board, far too many make phony claims and shill energy contracts that are more likely to bankrupt you than save you a few dollars each month.

These salespeople work for an ever-increasing number of energy-service companies (ESCOs) that have sprung up as alternative energy suppliers to Con Edison and other utilities. While my concerns with the unaccountable monopoly that is Con Edison are well documented, the scams that some ESCOs perpetrate on New Yorkers have proven we must be cautious as we seek solutions to New York’s sky-high electricity rates.

Far too many residents in my neighborhood and across New York are falling victim to these hucksters. In some cases, these salespeople pose as utility workers and use this pretext to obtain private customer information so they can transfer service without permission. In other instances, customers are promised extraordinarily low rates, only to find that a few months later their energy bills have ballooned several hundred percent and they face exorbitant fees to end their contracts.

If misleading sales tactics, lengthy and indecipherable fine print, and “teaser” rates weren’t bad enough, many ESCOs are deliberately and aggressively seeking out older consumers and those whose first language is not English in order to take advantage of them. In many ways, these ESCOs use the same underhanded tactics that duped so many into entering subprime mortgages. It is no surprise that consumer complaints against ESCOs have risen nearly 400 percent in recent years, according to the State Consumer Protection Board.

In order to better protect New Yorkers from these predatory companies, I introduced legislation establishing an Energy Consumer Bill of Rights. Assembly Bill A1558 establishes consumer safeguards to end aggressive and deceptive tactics by energy companies offering supply contracts to residential and small-business customers.

Under the Energy Consumer Bill of Rights:

• Fees for early cancellation of a contract would be capped at $100.

• Prepayment for energy services would be prohibited.

• ESCO representatives would be required to present identification and a short, plain-language statement outlining the customer’s rights.

• Variable charges would have to be clearly and conspicuously identified and changes in contract length would not be allowed without the express consent of the customer.

• The Attorney General would be authorized to seek civil penalties of $1,000 per violation. Customers injured by violations would also be able to sue to recover damages.



I am heartened that the American Association of Retired Persons has joined me in the fight to protect consumers by supporting this important consumer protection. As AARP spokeswoman Luci de Haan pointed out, “energy costs are of paramount concern to many older New Yorkers who are on fixed incomes and are least able to bear the brunt of deceptive marketing practices. The measures set forth in [this proposal] can assure that older consumers are making smart and financially sound choices when selecting a private energy company.”

The Energy Consumer Bill of Rights passed the Assembly in February and is currently awaiting action in the State Senate. I hope for its speedy enactment so that we can limit the number of our neighbors who are taken advantage of by these charlatans.


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Michael Gianaris, a Democrat representing parts of Queens, is a member of the Assembly Consumer Affairs and Protection Committee.