Don’t be duped – Beware of these marketing gimmicks.

Energy Service Companies, are known as ESCO’s in New York State. These are companies, like M&R Energy Resources, that are approved by the Public Service Commission and the local utility company to sell natural gas and electricity.

Many ESCO’s are considered honest, fair and adhere to the rules established by the state of New York. However, there are those ESCO’s that, in an effort to increase their sales, make claims that are untrue. Before you choose an ESCO for your home or business make sure you have the facts to make an informed choice.

  • A utility company will NEVER call to verify your account number, to introduce a new program or offer a special discount. M&R Energy has received several calls from our customers complaining that they are receiving phone calls from other ESCOs that lead them to believe that they are calling from the utility company to verify their account number, to introduce a new program or a special discount. The ESCO calling typically has your name, phone number and address. They then use this information to ask for your utility account number. This practice of leading you to believe your utility company is calling is an attempt for the ESCO to acquire your account number in order to enroll your account with them. Should you receive this type of call, from an ESCO, please reconsider providing your account number to them until you have received specific terms of what they are prepared to offer you in writing.
  • Low Introductory Rates. Consumers do not be fooled by ESCO’s contacting you to offer a very low introductory rate to supply your natural gas or electricity. This is a sales approach utilized to entice you to enroll with their company. If you are offered such a rate, ask the ESCO what their rate will be the following month and thereafter. Often the response is “we don’t know what the rate will be.” If you don’t have in writing the details of the monthly pricing, then the ESCO can charge you any rate after the introductory rate expires. Normally, the rate in the following month is much higher than the introductory rate and also higher than the utility price. For your protection, always ask for the pricing details in writing. Don’t be fooled by a lower introductory rate.
  • Get the pricing option in writing. An ESCO can make any offer to a consumer. However, if they do not put that offer in to writing then it is not valid and that ESCO can charge you any price for your natural gas or electricity. Often times an ESCO will make the claim that they can save you 10% or more off of your utility bill. However, they will not put such an offer in to writing. Whatever offer you receive make sure that the offer in is writing.
  • Tax Savings Offer. An ESCO will claim to offer a sales tax savings program. This program is not unique to a particular ESCO. Every commercial customer (and now Rockland County residents) in New York State, that is currently charged sales tax, will have the sales tax removed only from the utility delivery charges when they choose to purchase natural gas or electricity from an ESCO. This results in a 3% – 4% savings off of your utility invoice. However, you will continue to pay for sales tax on your natural gas or electricity supply, just not on the utility delivery charges. If you are a residential customer, outside of Rockland County, then you have never paid sales tax on delivery or supply charges. In New York State, all residential customers are sales tax exempt. Therefore, this claim of a sales tax discount does not apply to you unless you live in Rockland County. M&R Energy Resources Corp. is an approved ESCO, based here in the Hudson Valley, provides natural gas and electric to thousands of retailers, restaurants, manufacturers, office buildings, hospitals, municipalities, homes and schools.

We are M&R Energy Resources. Your Proven Choice for Energy.