Gov. Cuomo Puts NY Energy Service Companies Under Greater Scrutiny

New York Energy Service Companies

Energy service companies or ESCOs that operate in the deregulated states have enjoyed great freedoms in the way they conduct business. For many years, end-consumers have been bombarded with a wide range of energy saving plans that are supposed to help them lower their utility bills. These deals did not always turn out great and it some cases they resulted in rate hikes that put additional strain on the budget of households and businesses.

This is why, New York Gov.Cuomo decided to say "enough is enough" and put some order in New York's energy service chaos.

A Comprehensive Action Plan

The new comprehensive action plan is aiming to protect residential and small business customers from unfair trade tactics. Considering that the State of New York has over 7 million residential electric customers, 4,3 million residential gas customers and over 20 percent of them shop around for retail energy -this action plan is going to affect a lot of people.

Green Energy

Green Means Green and Cheap Means Cheap

This new action plan should bring an end to misleading advertisements offering cheap or green energy. If energy service companies claim that what they offer will actually save money, they really need to support that with numbers.

The same goes for the "going green" promises that have been quite popular since the U.S started gravitating towards renewable energy sources. ESCOs will need to prove that at least 30 percent of their energy comes from renewable sources to support their "green" claims.

Energy Service Companies Using Unfair Tactics Left and Right

The New York's Public Service Commission has identified unfair charging tactics used by many different energy service companies. There's more than a few companies that have charged double the usual price of energy and there are instances where people were paying three times higher for their electricity simply because they were locked into an unfavorable contract. One variable rate plan available in the Finger Lakes region even went up to 8 times the regular price of electricity.

A Time Out for Unfair Trade

These ESCOs have received a well deserved time out and can no longer sign new contracts until they make some major changes to their policies. Furthermore, the Public Service Commission will strengthen its policies for revoking eligibility to those who violate state regulations. This level of scrutiny will even out the playing field and allow energy service companies who offer fair rates to thrive under the protection of the state.

What Does This Mean for Luminext?

Well, this does make things a lot easier, but it does not put us out of business. Even in a market where you can surely find cheaper rates, you can still use our expertise to get the lowest one possible. Our assistance can even bring you rates that are not publically available on the market. The state of New York has over 200 eligible ESCOs and we will find you the best one possible. Consulting with us is free of charge, so contact us today and let's work on lowering your bills!

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