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Issue link: https://read.dmtmag.com/i/251536
28 FEBRUARY 2014 FUEL OIL NEWS | www.fueloilnews.com I n early January, customers of a fuel marketer, heretofore referred to as "The Marketer," com- plained to the State of New Hampshire that they were running out of fuel, were experiencing delays in the delivery of their fuel, or both. The Marketer, generally regarded as New Hampshire's largest retail heating oil supplier, and in business for nearly five decades, reported the problem resulted from unusually severe weather, crushing demand and an unforeseen technical malfunction that downed the company's phone system. Ostensibly due to the size of the marketer and the number of customer involved, New Hampshire Governor Maggie Hassan waded into the whirlwind, citing concern over cold weather and the "potential health and safety risks to citizens". Governor Hassan noted that "[The Marketer] is a private business, and the state has little legal authority to regulate its deliv- ery practices. However, we do have to act to protect the health and safety of our citizens". Hassan stated further that The Marketer was cooperating fully with the State's efforts. In an unprecedented move, the New Hampshire set up and manned a "hot line" for the purpose of fielding calls from customers of The Marketer. Callers to the hot line were told that the hot line would try to work through The Marketer to arrange delivery, or connect callers to other options. Other fuel retailers, whose delivery footprints overlap those of The Marketer, collectively took on "thousands" of accounts. The situation also raised the specter of whether The Marketer had sufficient capital, in the form of funds paid in advice for pre-bought fuel, and the New Hampshire Office of the Attorney General pressed The Marketer for "a more detailed account of the shortage" and "a concrete plan as to how the company planned to catch up, particularly with its pre-buy customers who invested months in advance for fuel this winter." The pressure on the industry, collectively and on individual marketers, has been considerable as the fuel association in New Hampshire does everything it can to mitigate damage to the industry's reputation. By press time, the association had taken hundreds of calls from consumers, lawmakers, state officials, media, the Governor and others and the industry was under the gun to come up with proposals that would address collective concerns and protect the interests of New Hampshire fuel consumers. In late January a meeting of about 30 members of the Oil Heat Council of New Hampshire was held for the purpose of building consensus on a plan of action, or list of recommendations, that the industry could put forth to authorities. Legislation affecting fuel dealers and program offerings that the association had previously fought were now back. In general, a number of options were suggested, including but not limited to: • A prohibition that would restrict fuel dealers from offering pre-buy programs before May 1 of the pend- ing heating season. This was in response to concerns that some marketers offer pre-buys earlier and earlier each year as a means to generate cash as a result of poor financial performance. • That pre-buy customers be required to make their pre-buy payments using credit cards only. It was suggested that the credit card companies have made customers whole when the provider of the product or the service reneged on the promise of the delivered product or service. • A requirement, similar to what is in place in Maine, that would enhance the reporting require- ments for fuel marketers that offer certain programs. This was essentially a means by which to force further transparency of programs and compliance with state laws concerning offered fuel purchase programs. • Requiring any marketer offering a pre-buy program to essentially execute—and publish—an affidavit stating that the marketer is in full compliance with state laws concerning pre-buys and contracts. This was driven by the suggestion that the sooner the marketer had to declare openly and publicly his/her compliance with state laws concerning programs, the lesser the chance that a marketer would run afoul of State requirements. By the time you read this, the association will have met again with authorities again to seek mutually agreeable solutions. The details of the New Hampshire event may be unique; however, the dynamic plays out time and time again. Regardless of the reasons for incidents: weather, infrastructure failure, human error, poor planning, incompetence or any combination of the above we individually and collectively suffer the con- sequences. No matter the source, "industry failure" can, and often does, bring the full weight of the authorities, media, and public opinion, raining down upon us like a ton of bricks. We are again "painted with the same brush" and, no, we cannot get the "toothpaste back in the tube" — at least not all of it. l F O N Bio: Shane Sweet is an energy and management consultant with clients in the heating oil, propane and motor fuel sectors. He served the industry as President & CEO of the New England Fuel Institute "NEFI" from 2007 to 2011, and as Executive VP/Director and Lobbyist for the Vermont Fuel Dealers Association "VFDA" from 1993 to 2007. CoNTACT: shanemsweet@gmail 802-558-6101 cell/text. Suggestions by readers for future column content, as well as general comments, are welcome. Shane Sweet OPERATIONAL INSIGHT Paint & Toothpaste