Energy Service Companies (ESCOs) play an important role in New York’s energy market, providing electricity, natural gas, and renewable energy solutions to millions of consumers. By opening their market, New York gave residents the ability to choose their energy provider rather than rely solely on local utilities.
The Energy Services Company Consumers Bill of Rights (GBL § 349-d) outlines the rights of consumers who purchase energy service from ESCOs. Recent updates to this legislation contain important provisions that you should be aware of. In this blog, we’ll walk you through the changes and how they affect you, including what policies Agway has implemented in order to protect and empower customers.
Understanding ESCOs
Because they operate in the energy sector, ESCOs are often confused with public utilities. In reality, they’re private companies with a separate and distinct business model. In a regulated market, utilities produce, supply, and distribute all the energy you consume. But in a deregulated or open market, these functions can be handled by separate entities.
Producers generate electricity and harvest natural gas. ECSOs purchase electricity and natural gas from producers and sell it to their customers. Utilities own and maintain the pipelines, power lines, and substations that deliver electricity and natural gas to you. This separation provides consumers with more flexibility regarding choice and pricing. ESCOs focus on choice and customer care. Customers cannot choose their public utilities, but can choose which ESCO they want to work with.
Express Consent
According to recent amendments to General Business Law (GBL) §349-d, ESCOs are prohibited from altering a contract price without the express consent of the customer. ESCOs are also not allowed to switch customers to a fixed or variable pricing plan or from a fixed or variable pricing plan without express permission from the customer. These new provisions ensure clear pricing and allow consumers to plan their energy budget with greater accuracy.
How Agway Protects Customers
Agway strives to be upfront when dealing with customers. Before the end of each price term, we provide a written renewal notification detailing the new rate and term and informing the customer of their right to reject the renewal offer. Consumers enrolling for the first time receive the current available price, which will run through the next scheduled expiration or renewal date.
Our goal is not only to protect consumers, but empower them, which is why we require explicit, express consent before modifying the price or term of your energy plan. Customers wishing to continue their EnergyGuard™ coverage must provide express consent by following the steps outlined in the renewal letter. Customers who do not respond may be returned to their local utility and lose their EnergyGuard™ coverage, as well as its associated savings.
Saving on Home Repairs with Agway
Agway is not an ordinary energy services company. We don’t just supply consumers with electricity and natural gas. Our EnergyGuard™ Repair Program protects your heating and cooling systems, as well as your internal wiring, from damage caused by wear and tear. This type of depreciation is impossible to avoid and often expensive to repair. Property insurance doesn’t cover these sorts of problems, but we do.
What’s more, when the need for repair occurs, our customers don’t have to waste time searching for a qualified repairman. They call us instead. Our service team maintains a network of certified contractors and electricians, strategically located to respond to emergencies. Customers don’t have to worry about deductibles or service fees, either. Agway pays for the cost of the visit and all covered parts.
Don’t let a breakdown upset your budget. Current Agway customers interested in keeping their coverage should review their renewal letter and provide their consent before the deadline indicated on the letter. If you’re not a current Agway customer, sign up and start enjoying the benefits of EnergyGuard™ today!
