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Guidelines strict for door-to-door solicitors

As Ohioans are presented with more opportunities to choose their natural gas suppliers, it is important to understand the rules that govern what marketers can and cannot do to get consumers’ business.

Increased competition in the natural gas marketplace is one way to keep bills low. When more suppliers are available for homeowners to choose from, the chances are better that lower rates will result.

However, consumers need to keep in mind that with the growing number of independent suppliers competing for new clients, chances are that Ohioans will receive a visit from a door-to-door salesperson. If consumers are visited by a solicitor, they should know that there are rules that must be followed when asking to switch natural gas suppliers.

Ohio law clearly defines the code of conduct that natural gas salespersons must follow. If consumers receive a visit from someone claiming to represent a marketer, he/she should make sure the salesperson has done the following:

• Stated that he/she is a representative of the marketer and NOT the utility;

• Fully explained any documents to be signed, how much it will cost, including tax, and how long the contract will be in effect; and

• Orally explained the right to cancel and has given right-to-cancel forms.

All door-to-door salespeople must show valid photo identification issued by the natural gas supplier. Within three days of receiving a consumer’s signature, the marketer is required to notify the natural gas utility of his/her intention to switch companies.

The OCC is available to assist with questions about choosing a natural gas supplier. Call toll free, 1-800- PICKOCC (1-800-742-5622) or review the “Comparing Your Energy Choices” fact sheet on the OCC Web site, www.pickocc.org, for up-to-date information about current suppliers and their offers.

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Alternatives available to traditional telephone service

Telephone service is an essential need for most Ohioans to stay connected with family and emergency services. With the cost of utility services, including telephone, continuing to climb, searching for alternative options may be one way for consumers to control their utility budgets.

For consumers who subscribe to a telephone including special services and some allowance for long distance calling, there are a number of alternatives to consider when looking for the best available price and services. Traditional landline carriers, competitive carriers such as cable companies and cell phone providers offer a variety of bundled packages as options. Phone service over a broadband connection also is a viable alternative, where available. When comparing choices, consumers should be sure to carefully compare prices and packages.

Consumers who subscribe only to basic telephone service have fewer alternatives, if any. Many competing companies do not offer basic service by itself. These companies only offer packages that include services not all customers want or need.

Cellular or wireless phone service has become a popular form of communication to stay in touch with family and friends. Cell phone providers offer many features and calling plans in specific areas using a set amount of minutes each month. Some companies also offer plans with unlimited calling. Cell phones allow consumers to stay connected whenever and wherever they want. But some areas still do not have a strong enough cell signal. Consumers should check with each cell phone company to determine whether that company’s coverage areas meet their needs. In addition, many wireless providers require a multi-year contract for service and there may be fees for early cancellation.

Voice over Internet Protocol (VoIP) is a telephone service that could provide savings over traditional landline service. A broadband Internet connection and special equipment is required to make and receive calls. It is possible that 9-1-1 service may be unavailable and VoIP service may be interrupted during a power outage.

There are advantages and risks to all of these telephone options. All traditional local and long-distance telephone companies must meet Ohio’s minimum telephone service standards. These regulations include how much time a company can take to restore service and what action can be taken by companies if a consumer’s bill is not paid on time.

Wireless service can give you the freedom to talk without needing a landline telephone and VoIP also may provide savings over traditional telephone service. These services are not regulated in Ohio and the minimum telephone service standards do not apply to the companies that provide them.

The Office of the Ohio Consumers’ Counsel has more information about each of these telephone options on its Web site. Consumers also can compare the costs and options available at www.pickocc.org or by calling toll free 1-877-742-5622.

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Violation could cost Aqua Ohio thousands of dollars

Aqua Ohio could face fines of up to $10,000 per violation for failure to resolve billing issues that affect its residential customers. The Office of the Ohio Consumers’ Counsel (OCC) represented residential customers in a hearing to determine if the company violated the law and the appropriate amount of penalty for those violations. Aqua Ohio already has conceded to some fault for the violations. The Public Utilities Commission of Ohio staff has recommended that its commissioners accept an October 2008 agreement that would require Aqua Ohio to pay a total of $25,000 to three separate community action agencies and be fined $1,000 per day until the billing issues are resolved.

The OCC has worked with Aqua Ohio over the past year to resolve the company’s billing and backlog issues. Throughout the course of two settlements, Aqua agreed to fix all these issues by Oct. 15, 2008. As of February, customers were still reporting billing issues to the OCC and PUCO. The billing problems have resulted in customers not receiving an actual meter reading or a bill for extended periods of time. Other customers complained about improperly assessed late payment fees.

The OCC filed testimony on behalf of residential consumers Feb. 17 regarding these problems. In addition to a $25,000 contribution the company agreed to pay to three community action agencies, the OCC also is requesting the PUCO order daily penalties for Aqua Ohio’s failure to resolve all billing issues by the Oct. 15 deadline and to take other necessary action to resolve these problems. A PUCO decision is anticipated in April.

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Choice consumers urged to read fine print

While many Ohioans have their heating source delivered directly from a major natural gas company such as Columbia Gas of Ohio, Dominion East Ohio Gas, Duke Energy Ohio or Vectren Energy Delivery of Ohio, not all purchase gas from these companies. Some have elected to purchase natural gas from a competitive natural gas company to heat their home. Customers who make this choice must sign a contract with the supplier before receiving natural gas from them. It is the details entailed in the contract that consumers must understand fully before accepting an offer.

Falling natural gas prices and increased competition have given customers the freedom to comparison shop for lower rates but also has led to confusion among those who did not fully understand the details of the agreement they entered into. It is up to consumers to understand the fine print before signing any agreement. If consumers are unsure of anything in the language of an agreement, they should ask the marketer questions or refer to the company’s Web site.

Many sites include frequently asked questions to address commonly occurring situations. Questions that are not completely addressed by the question and answer pages should be directed to the company’s customer service center.

Consumers should have a complete understanding of the agreement before enrolling with a marketer.

Consumers should verify the following before completing an enrollment:

• Whether the agreement will be automatically renewed upon completion;

• Whether automatic renewal would be subject to a higher rate;

• An understanding of whether the rate is a fixed or variable rate and what those two terms mean;

• Whether any additional fees, such as for enrollment, transfer or cancellation, may be charged; and

• That the supplier is a certified participant in Ohio’s choice programs.

After consumers have received their first bill, they should check the numbers against the signed copy of the contract to make sure the charges assessed reflect what was agreed to. Consumers need to be aware that in many cases, if they decide to switch to a different supplier offering a lower rate, it generally takes 45-60 days for the new rate to go into effect.

Consumers should be sure to read and save any materials received from the supplier as they may include notices of changes to the original offer, rate or length of the service agreement.

The Office of the Ohio Consumers’ Counsel (OCC) offers an up-to-date chart listing of all alternative suppliers in Ohio, their rate offers with fixed or variable rate contracts and the contract length. The OCC’s “Comparing Your Energy Choices” chart is available at www.pickocc.org. Consumers also may contact the OCC toll free at 1-877-742-5266 with questions about natural gas choice.

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Give the OCC your opinion

For decades, the Office of the Ohio Consumers’ Counsel has communicated with consumers through its bi-monthly newsletter, Consumers’ Corner. This publication is available in both electronic and print versions. In order to measure its effectiveness, the OCC wants to hear what your opinions are of the newsletter.

You can provide your opinion in one of two ways:

1) Electronically – Visit www.pickocc.org and click on the Consumers’ Corner newsletter survey link on the front page.

2) By phone – You can call the OCC toll-free at 1-877-742-5622 and ask for the OCC Communications Department. A staff member will accept your responses.

Please spend a few minutes to answer 10 brief questions. All responses are anonymous.