Brokers Enter New Era in New York
July 24, 2023
August 31, 2023 looms as an important date in New York. A new Public Service Commission Order requires any entity providing energy broker or consultant services to register annually with the Commission, pay a registration fee, post financial collateral, and disclose compensation. This applies to Broker, Consultant, ESCO, Distributed Energy Resource provider, Community Choice Aggregator companies and independent subcontractors.
The deadline for submitting registration material for existing entities is August 31, 2023. The Commission has promised to review registration material by December 1, 2023. Business as usual can continue while registration materials are under Commission review.
Registrants shall disclose to customers the form and amount of compensation via a conspicuous statement on any contract or agreement between the energy agent, consultant, broker, or intermediary and its customer. All such disclosures shall include any dollar amount paid, the form in which the compensation was given to the energy broker or energy consultant, the entity which made the payment, and any broker fee or margin which was added to the energy product or service the customer enrolled in.
This disclosure must include commissions, bonuses, and any non-financial compensation. In instances where the broker or consultant has a direct contractual relationship with the customer, this disclosure shall be included on the first page of the customer agreement.
Existing entities that do not submit registration information by August 31 cannot be compensated.
For more:
Energy Broker and Energy Consultant Registration