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BPU Adopts Amended Retail Energy Competition Rules
Among other amendments to existing rules the New Jersey BPU approved at its August 12th Session modified rules governing retail electric and natural gas disclosure and licensing rules.
Note that final rules were not available at time of publication. However, at the Commission session Staff represented that there were only three changes in the final order from the proposed rules previously published. Staff noted that these modifications would be incorporated into the final rules.
The amended competition rules apply to all retail electric and gas customer classes unless specifically noted otherwise.
The NJ BPU new rules are intended to strengthen customer protection against third party supplier slamming, deceptive advertising, and significant billing errors. The amendments are also intended to provide clarity, including on the applicability of the Board’s regulations for public utilities owned by non-traditional holding companies.
The new modified rules require what is referred to as a “preferred supplier freeze” that allows a customer to direct their utility to block any future switch from one third party supplier (TPS) to another. This “preferred supplier freeze” would remain in place until the customer lifts the freeze.
Note that under the new rules a municipal aggregation would not be permitted to enroll, on an opt-out basis, if the customer has a “preferred supplier freeze” in place.
The preferred freeze mechanism must be implemented within 12 months, which staff indicated was extended from the prior proposed six month period.
To add/remove a “preferred supplier freeze”, the utility must obtain the customer’s consent, in the manner described below, and must confirm the customer’s name, address, and account number. Per the rules, the utility must (1) obtain the customer’s written or electronically signed authorization, or (2) obtain the customer’s verbal authorization stating the customer’s intent to add or remove the freeze. For verbal authorization, the utility shall use the same methods that the utility presently uses to verify that an individual is the customer of record or is authorized to make changes to the utility account. Note that under these two options, a customer’s selection/removal of the “preferred supplier freeze” must be done by the customer and not by the TPS or it’s agents. Moreover, note that a customer’s authorization to add/remove a switch block does not constitute authorization for a switch; rather per the rules, the there is separate authorization that is required for a switch that still must be obtained per the existing switching rules.
The new rules also include notice requirements related fixed price expirations:
- Fixed contracts or fixed with variable price element require the TPS to provide notice to the customer at least 30 days prior to expiration of the fixed price element.
- For a fixed contract that defaults to a variable rate at expiration, the expiration notice shall provide, “an explanation of the difference between a fixed rate and a variable rate that is easily understandable by the general public.”
For residential customers with a retail contract that contains fixed, variable, or both fixed and variable rate elements, the TPS must include the historical variable rate billed by the supplier for the three preceding months. If no historical data exists, the TPS shall state that no historical data is available.
Contract summaries for residential customers only, shall include historical variable rates billed by the TPS for the three preceding months. When no historical data exists, the supplier shall state that no historical data is available.
The new rules will also include changes to licensing, bond and other changes previously proposed. More details to follow when final rule language is available.
As previously reported, the New Jersey BPU issued a notice to amend its existing energy competition rules at N.J.A.C. 14:4 and to adopt new rules to be added to the provisions at N.J.A.C. 14:4. The proposal was published in the February 2, 2026 issue of the New Jersey Register. The deadline for written comments on this matter was 5:00 p.m. on Friday, April 3, 2026.
