The deregulated energy market in Texas comes with great benefits for area customers who have the power to choose their preferred electricity provider. However, in an effort to protect both the consumers and the independent providers within Texas? deregulated electricity market, the state has placed several rules and regulations on the industry to help maintain the well being of both parties.
For consumers, it is essential to understand these rules so that they may shop for a new provider with confidence and fully comprehend how these different regulations may impact their shopping experience.
Credit Requirements for Customers
Electricity utilities can require customers to establish and maintain a certain amount of credit before they can sign up for service. Customers filing residential applications can demonstrate their satisfactory credit through proof of good standing with a previous utility company, proof of ownership of substantial equity or credit references.
Initial and Additional Deposits
Both residential and business applicants may be required to pay a deposit on their credit bill if proof of credit cannot be establishment. A deposit may also be required if a customer has been late paying a bill during the last 12 months or had an electric connection turned off from delinquent payment.
An additional deposit may be required after notification of service termination from non- payment. Customers required to pay an initial deposit, or an additional deposit, will have ten days to do so following the notification?s issuance.
Residential customers who pay their bill on time for 10 months, and business customers who pay their bill on time for 24 months, will promptly have their deposit refunded.
Residential Customer Guarantees
All customers have the right to a written guarantee agreement between themselves and the electric utility. If customers fail to uphold their end of the agreement and pay for their electricity service on time, the company must provide the customer with a notification before disconnecting their service.
The company must allow the customer 16 days from the notification to pay the amount owed on their bill.
Non-Discriminatory Practices
Electric consumers have the right to non-discriminatory service. Electric companies may not deny service to any customer based on their income level, location or if they qualify for low-income energy assistance.
Protection From Slamming and Cramming
Slamming is a serious act of switching electric service providers without the permission of the customer. The state of Texas strictly prohibits this act and protects its customers from falling victim to slamming.
The state also protects customers from cramming; an illegal act that includes adding charges to an electric bill for optional services that have not been approved by the customer.
Dispute Resolution
Energy customers have the right to file an official complaint with the Texas Public Utility Commission, knowing that the electric company is required to promptly address that complaint.
Customer Protections
All energy customers have the right to privacy of personal information. All contracts must also have a Terms of Service agreement detailing their company?s terms and conditions, and a ?Your Rights as a Customer? section. An Electricity Facts Label must come with all new contracts, that details pricing information.
Before a contract is about to expire, customers have the right to receive notification within at least 30 days of the end of the contract?s term.
For consumers, it is essential that they understand their rights as a customer in this deregulated market. In fact, the state of Texas has detailed the specifics of the rules, requirements and guidelines that govern the state?s deregulated electricity market in a public document, designed to help eliminate confusion on the common practices of the deregulated electricity industry.
