Md. Code Regs. 20.53.07.10

Current through Register Vol. 51, No. 22, November 1, 2024

Section 20.53.07.10 - Notice of Contract Expiration or Cancellation

A. Notice. Except as permitted in §§D and G of this regulation, a supplier shall provide the customer with notice at least 30 days before expiration or cancellation of a supply contract.

B. Contents of Notice. The supplier's expiration or cancellation notice required under §A of this regulation shall include:

(1) Final bill payment instructions;

(2) A statement informing the customer that, unless the customer selects a new service provider, cancellation of the contract shall return the customer to the utility; and

(3) The toll free telephone number and the web site address of the Commission.

C. Early Cancellation.

(1) Notice of early cancellation by the supplier shall comply with §B of this regulation.

(2) Early Cancellation Fee.

(a) A supplier may impose a reasonable early cancellation fee if a customer cancels the contract before the expiration date.

(b) A supplier may deduct a cancellation fee from a customer deposit.

(c) Beginning July 1, 2023, a supplier may not impose a cancellation fee on an energy assistance household.

(3) Except as provided in a tariff regarding supplier default, a utility may remove a customer from supplier services only if directed by a supplier, subject to applicable bankruptcy law.

(4) When a supplier contracts with a customer, the newly contracting supplier shall notify the customer that the customer may incur early cancellation penalties under a current supplier contract.

D. Drop for Nonpayment Under Supplier-Consolidated Billing.

(1) A supplier providing supplier-consolidated billing services shall provide a nonpaying customer a minimum notice of 5 days before cancellation of the customer's contract.

(2) A supplier's notice to a nonpaying customer shall include the information in §B of this regulation and the following:

(a) The total amount due;

(b) The date by which the payment is due to the supplier;

(c) The date on or after which the supplier will transmit the drop request to the utility if payment is not received; and

(d) The telephone number at which the supplier representatives who handle payment arrangements, payment plans, and customer complaints may be reached.

E. A supplier that provides supplier-consolidated billing services may transmit the notice required in §A or D of this regulation with the customer's bill.

F. The supplier shall provide a notice required by §E of this regulation in a prominent manner.

G. Cancellation of Contract for Customers Who Start Receiving Energy Assistance.

(1) A supplier which receives notice from a utility that a customer is newly identified as an energy assistance household shall provide notice to the customer within 3 business days.

(2) The notice shall:

(a) Inform the customer that:

(i) The supplier can no longer serve the customer under their existing contract under Public Utilities Article, §4-308, Annotated Code of Maryland;

(ii) Unless the customer selects a new service provider with a Commission-approved contract for energy assistance households, cancellation of the contract shall return the customer to the utility's standard offer service; and

(ii) The supplier cannot charge a termination or early cancellation fee; and

(b) Provide the toll-free telephone number and the website address of the Commission.

(3) In addition to the notice required in §G(2) of this regulation, if the supplier chooses to offer the customer a Commission-approved contract for energy assistance households, the supplier shall include all the information necessary to enroll the customer, including:

(a) The Commission-approved contract for energy assistance households and the contract summary; and

(b) Instructions for the customer to provide consent to receive service under the Commission-approved contract for energy assistance households.

(4) If the existing contract allows the supplier to provide service under a Commission-approved contract for energy assistance without additional customer consent, the supplier shall include with the notice the Commission-approved contract for energy assistance households and the contract summary.

Md. Code Regs. 20.53.07.10

Regulation .10C amended effective April 6, 2009 (36:7 Md. R. 527); amended effective 43:5 Md. R. 386, eff.3/14/2016; amended effective 49:5 Md. R.367, eff. 3/7/2022; amended effective 50:13 Md. R. 513, eff. 7/10/2023