SYRACUSE, N.Y. - Jun 20

 

National Grid customers will receive a two-month 7 percent discount if they agree to quit using the utility and pursue alternate energy suppliers, utility officials said.

State regulators pushed for the program, entitled New Choices, so customers would start to shop around for energy providers. It mirrors programs executed by other utilities and supports a statewide effort to get customers and more energy marketers involved in New York's retail energy market.

The program would allow customers to choose a new supplier for electricity or natural gas. National Grid can make the selection for customers, and they would receive the discount off of the new utility's price for the first two months.

National Grid will take on the risk of collecting payment from customers under the program. The utility will purchase receivables for each of the 12 energy marketers participating in New Choices, and National Grid will take the loss if the company cannot collect from the customer.

After the two-month discount ends, customers will be allowed to choose between staying with the new utility or switching back to National Grid.

Depending on the amount of energy a customer uses, the savings in the first two months could range between a few dollars and $30 a month, officials said.

Some critics say the effort to diversify consumer options will not help utility customers.

Many utility customers do not compare energy prices because the cost-benefit is unclear, said Ben Wiles, a senior attorney at Public Utility Law Project, a nonprofit Albany group representing low-income utility customers.

The state does not require energy marketers to publish prices, so customers are unable to comparison shop, Wiles said.

"We think these (programs) are pretty unattractive to consumers," Wiles said.

Customers who participated in a similar program with Orange & Rockland, a Pearl River-based energy company, have stuck with their new energy provider, said David Flanagan, speaking for the state Public Service Commission.

"For one reason or another, they seem to be satisfied with their service," Flanagan said.

The Public Service Commission recently announced that it may require energy marketers to begin disclosing their prices regularly. The commission will not take action on the issue until marketers and other parties can respond.

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Information from: The Post-Standard, http://www.syracuse.com