Utilities, Energy & Communications · Surprise rank #97
Regret a Third-Party Energy Contract? NY Gives Residential Customers 3 Days to Cancel Without Penalty
New York residential customers who switch to an Energy Service Company (ESCO) have a short rescission right after receiving the written agreement.
Who
New York residential utility customers who have just entered a covered ESCO energy-supply agreement.
What to do
Start here: Contact the ESCO immediately using the cancellation method in the agreement and keep proof of when the agreement was received and when cancellation was sent.
Eligibility: The request must be made within the three-day rescission period after receipt of the agreement.
What you get
A residential customer can rescind the ESCO agreement within three days of receiving it without a penalty.
Benefit: Avoidance of the contract and any early-termination penalty when rescission is timely.
Possible value: Depends on the contract, price difference and any termination fee that would otherwise apply later.
Good to know
Important: After the rescission period, the ESCO may charge an early-termination fee if the contract permits it. Review the customer disclosure statement.
Availability: Active consumer right
Why people miss it: Consumers may think signing or giving verbal authorization makes the energy contract immediately irreversible.
Sources reviewed: Aug 10, 2026