How Some Energy Service Companies Swindle Thousands of New Yorkers

Every year, thousands of New Yorkers fall prey to third-party utility companies that promise them big savings on their electric or gas bills, but jack up their prices over time. 

Nearly a quarter of all residential customers in New York get their energy through these Energy Service Companies — or ESCOs. And while many follow customer protection rules, Village Voice reporter Jon Campbell found these deceptive practices are widespread.

New York deregulated its utility industry more than a decade ago with the intent of bringing competition to a market that had been controlled by regulated monopolies like Con Edison, Campbell said.

"The idea behind deregulation was to introduce a whole flock of new, nimble, private companies that would compete and thereby drive down prices," he said. "But many industry watchdogs say that those envisioned price savings haven't really materialized." 

These predatory sales representatives often target elderly, low-income or non-English speaking customers, and Campbell found the New York Public Service Commission, charged with overseeing these companies, has done little to rein ESCOs in.

Campbell spoke to WNYC's Jami Floyd.