The Division of Ratepayer Advocates (DRA), an independent consumer advocacy unit...
The Division of Ratepayer Advocates (DRA), an independent consumer advocacy unit of California’s Public Utilities Commission (CPUC), asked the commission to extend price controls on basic residential telephone service which are set to expire Jan. 1. DRA said its request…
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was based on findings in its report The Failure of Consumer Protection, which analyzed effects of the PUC’s 2006 decision to remove price caps on phone services such as Caller ID. In the report, the Division said, it found a shortage of competition in the state’s telecom market, although the commission had justified removing price caps on landline services by pointing to competition from wireless and other emerging technologies. The market hasn’t become competitive, said DRA Acting Director Joe Como. “Lifting the price caps on ancillary services has served only to raise rates for consumers,” he said. “The same will happen to basic rates on January 1 unless the CPUC acts now to protect consumers who depend on affordable phone service. DRA proposes that the price controls currently in effect remain in place until the CPUC sets rules that will result in reasonable and affordable rates.” The state Senate’s Office of Oversight and Outcome recently criticized the PUC as having failed to protect consumers.