Economic Development
Energy Service Companies (ESCOs)
Long Island Choice is a LIPA program that provides residential and commercial customers with the option to purchase their electric supply directly from energy service companies other than LIPA.
What are ESCOs and do I have to choose one?
ESCOs are companies that can sell their supply of
electricity to you through LIPA's wires. ESCOs can generate this
electricity themselves or purchase it from others for resale.
You must choose an ESCO to participate in Long Island Choice,
but it is important to understand that an ESCO does not have to
accept you as a customer!. If you do not wish to choose an ESCO,
LIPA will continue to supply you with electricity.
What should I look for in an ESCO?
When choosing an ESCO, you may wish to consider factors such
as dependability, convenience and the company’s reputation. You
may also want to think about other products and services that
ESCOs offer. Though LIPA provides a list of licensed and
qualified ESCOs, only you can determine which ESCO is best for
you.
How does an ESCO get qualified to be in the Long Island
Choice Program?
Since ESCOs are not regulated, they will need to be licensed
through LIPA prior to doing business in LIPA’s service
territory. To participate in the program, ESCOs must agree to
LIPA’s consumer protection rules and participate in LIPA’s
training programs. You should not enter a contract with an ESCO
that is not licensed by LIPA!
What are the consumer protection provisions that apply to
ESCOs?
LIPA will monitor the performance of ESCOs to ensure that
you are protected from unfair and unethical practices. If you
have a question or problem regarding the electric supply portion
of your bill, you need to call your ESCO. ESCOs are required to
provide their toll-free telephone numbers on your bill, along
with LIPA’s customer service number. As a requirement of the
licensing process, ESCOs must also submit a formal dispute
resolution process to LIPA.
Will LIPA automatically provide customer information to
ESCOs for marketing purposes?
No. The ESCO must obtain your written, electronic or taped
recorded verbal authorization to access customer information.
Note that if you give an ESCO your LIPA electric account name
and number, that ESCO will be able to obtain energy usage
information about your account from LIPA.
After signing up with an ESCO, is there a time period
within which I can cancel the contract?
Yes. You have the right to cancel your contract with an ESCO
within 5 days after the contract is signed.
How do I know if an ESCO has been licensed by LIPA?
Click here for a list of LIPA-licensed
ESCOs.
How often can I switch ESCOs?
At the end of your contract term with an ESCO (or before the
end of that term in accordance with the provisions of the
contract), you may return to LIPA bundled service, stay with
your current ESCO, or choose a new ESCO. The first switch from
LIPA to an ESCO and the first switch back from an ESCO to LIPA
are free. After that, there is a $10 fee for switching. You can
terminate your contract with an ESCO by giving at least 10 days
notice (or even more advance notice if your contract requires
it).
Can I come back to LIPA if my supplier goes out of
business, or if I don't like my ESCO?
In the event your ESCO goes out of business, LIPA will
supply you with electricity at LIPA's existing rates or you may
choose another ESCO. If you are unhappy with your ESCO, you must
provide 10 days notice to terminate the contract.
