Broker tried to switch us without authorization - what are my options?

Started by Walt D. — 12 years ago — 13 views
Had a broker contact us last month claiming they could save 20% on our electric costs with Duquesne Light. We told them we weren't interested but apparently they submitted paperwork anyway. Now we're getting calls from some third-party supplier we never heard of saying we're switching next month. This can't be legal, right? We're a small manufacturing operation pulling about 800 MWh annually and can't afford any disruptions to our service. Has anyone dealt with slamming like this before?
Walt, this is textbook slamming and it's definitely not legal. In Pennsylvania you have very specific rights under the supplier switching rules. Contact the PA Public Utility Commission immediately and file a complaint. They take unauthorized switches very seriously, especially for commercial accounts. Also call Duquesne Light right away to put a hold on the switch. You should be able to cancel without penalty since you never authorized it. I've seen this happen with some of the more aggressive brokers who use bait-and-switch tactics.
Rachel's right about contacting the PUC. I had a similar issue with PECO a few years back where a broker forged authorization documents. The PUC not only stopped the switch but also fined the supplier $50,000. Document everything - save any voicemails, emails, or paperwork they sent you. If they called you, check if Pennsylvania is a one-party consent state for recording (it is) and record any future calls. The supplier will likely try to claim they have valid authorization so you need to prove they don't.
This is exactly why I tell all my clients to put password protection on their utility accounts. Most utilities offer this service - you set up a verbal or written password that must be provided before any changes can be made to the account. It's a simple way to prevent unauthorized switches. Memphis Light Gas & Water started offering this after we had several slamming incidents in the commercial district. Walt, definitely file that PUC complaint and consider adding password protection once this is resolved.
Thanks everyone. I called the PUC this morning and they're opening an investigation. Duquesne Light confirmed they received the switch request but agreed to cancel it immediately once I explained the situation. The broker is now claiming they have a signed contract but when I asked them to send me a copy, suddenly they can't find it. Going to follow Phil's advice and set up password protection. This whole experience has been a nightmare - we're just trying to run our business, not deal with these predatory sales tactics.
Walt, glad to hear the utility is cooperating. One more thing - check your mail carefully over the next few weeks. Sometimes these brokers will send fake 'welcome packets' or bills to make it look like the switch went through. I've seen businesses accidentally pay these thinking they're legitimate. Also, if the broker continues to harass you, most states have do-not-call registries for commercial energy marketing. Ohio has one that's been very effective at reducing these unwanted calls.
This thread should be required reading for anyone dealing with energy brokers. I've been auditing utility bills in Colorado for years and the number of unauthorized switches I've uncovered is staggering. Xcel Energy actually started sending confirmation letters to customers before processing switches because of how common this was becoming. The legitimate brokers hate these practices because it gives the whole industry a bad reputation.