NY cracks down on non-utility energy retailers

Posted at 9:44 PM, Feb 23, 2016
and last updated 2016-02-24 11:40:20-05

New York State is tightening the rules on energy retailers who promise big savings to consumers who switch from traditional utilities.

Gov. Andrew Cuomo says Tuesday that the state will require the companies to guarantee savings for residential and small business customers.

The rules wouldn't apply to energy companies that derive at least 30 percent of their electricity from renewable sources.

In addition, new rules are designed to prevent aggressive marketing efforts by companies that make unwanted calls or visits to consumers.

The changes come after a state review found many instances of energy retailers overcharging customers or failing to deliver on promised savings.

New York has more than 200 energy services retailers competing with traditional utilities to provide electricity and natural gas.