State regulators are launching a review after initial findings show many New Yorkers who took advantage of initial discounts to sign up with independent, retail energy providers are paying more for electricity and natural gas than from utilities.
The Public Service Commission review announced Thursday goes to the heart of de-regulation of utilities in the late 1990s. The idea was to allow ratepayers to choose suppliers from dozens of companies. The retailers then deliver the gas and electricity over the lines of traditional utilities, including National Grid and New York State Electric and Gas Co.
The competition was supposed to drive prices lower.
But these energy service companies, known as ESCOs, often provide more expensive supplies of solar and wind energy, which some customers are willing to pay more for.