Retail energy sales FAQ: what reps sell, verification, state rules and pay

A supply contract. The customer agrees to buy electricity or natural gas from a competitive supplier at the rate and for the term in the contract. The rep explains the offer at the door and starts the enrollment. Nothing is installed and nothing about the service to the home changes.

No. The local utility still delivers the energy, reads the meter and handles outages. The supplier provides the energy itself, and its charge replaces the utility's supply charge on the bill. A rep must never suggest that the utility is being replaced or that service will be interrupted.

Either the supplier or, commonly, a marketing company the supplier hires to sell for it. Ask which supplier you would represent, who signs your agreement and who pays you.

Whether it is fixed or variable, how long it lasts, what happens when the term ends, and any fee for leaving early. A fixed rate stays the same for the term; a variable rate can change from month to month. Most complaints in this industry come from customers who did not understand which one they signed.

A minority. The Energy Information Administration counted 13 states and the District of Columbia with active statewide retail choice programs in 2023. Door-to-door energy jobs exist only in those markets, and each one has its own rules.

Source: U.S. Energy Information Administration: retail choice programs (2023)

An independent, recorded confirmation that the customer understands and agrees to the switch. Ohio requires independent third-party verification of door-to-door enrollments, with the verifier confirming that the agent has left. New York records the verification and says the agent should not be present for it. Never coach a customer through the call.

More: Third-party verification

Source: Ohio Administrative Code 4901:1-21-06 (customer enrollment and third-party verification) · New York Department of Public Service: how to shop for energy services

The account holder, or someone the account holder has authorized. Enrolling a tenant, a relative or a neighbor who is not on the account is the fastest way to a rejected sale and a complaint. Ask early whose name is on the bill.

More: Slamming

Yes. Pennsylvania, for example, requires the agent to tell the customer that they may rescind within three business days, and federal law gives a similar cooling-off period for most sales made at a home. After that window the contract's own cancellation terms apply.

Source: 52 Pa. Code 111.9 (door-to-door sales by energy suppliers) · Federal Trade Commission: Cooling-Off Rule (16 CFR Part 429)

The usual reasons are a failed verification call, a signer who is not the account holder, a customer who is already under contract with another supplier, and a customer who cancels in the rescission period. A rejected enrollment does not pay, so careful sales earn more than fast ones.

It is set by each state. Pennsylvania requires a badge, prominently displayed, with the supplier's logo, the agent's photo and name and a phone number. New York requires a badge showing the agent's name and photo and the supplier's name and phone number, and the agent must leave a card. Wear the badge the whole time you are on the doors.

Source: 52 Pa. Code 111.9 (door-to-door sales by energy suppliers) · Pennsylvania Public Utility Commission: tips on door-to-door energy sales (2024) · New York Department of Public Service: how to shop for energy services

In Pennsylvania, door-to-door energy sales are limited to 9 a.m. to 7 p.m. from October through March and 9 a.m. to 8 p.m. from April through September, and a stricter local ordinance takes priority. Other states and cities set their own windows, so check both before you start.

More: Permit rules by city

Source: 52 Pa. Code 111.9 (door-to-door sales by energy suppliers)

In Pennsylvania, yes: before an agent sells door to door, the supplier must obtain a criminal history record from the State Police and from every other state where the person lived in the previous twelve months. Expect a check in other choice states as well, and tell the company early about anything on your record.

Source: 52 Pa. Code 111.4 (agent qualifications and criminal background checks)

Do not say or imply that you are from the utility, that the customer is required to choose a supplier, or that the offer is a government program. Do not promise savings the contract does not state. Leave at once when asked: Pennsylvania and New York both say so in their rules.

Source: 52 Pa. Code 111.9 (door-to-door sales by energy suppliers) · New York Department of Public Service: how to shop for energy services

Commission per enrollment that passes verification and goes active, usually paid weekly, with bonuses for volume. Enrollments that are rescinded or that drop within a set period are commonly charged back. Ask how long that period is.

More: Chargeback

It can be: the pitch is short, nothing is installed, and pay is frequent. It also has less room for improvisation than any other door-to-door sale. You follow an approved script, wear a badge and hand every sale to a verifier. People who like clear rules do well; people who like to freestyle do not.