This is infuriating. Our energy broker in Texas switched our electricity contract from a 2-year fixed rate at 6.8 cents/kWh to a variable rate product without our written approval. We only found out when our November bill from CenterPoint showed rates over 9 cents/kWh. The broker claims we gave 'verbal authorization' during a routine call but I have no record of this. Our original contract had 8 months remaining. What are my legal options here?
Broker switched our contract without authorization - legal options?
Vivian - that sounds like unauthorized switching which is illegal in Texas. Contact the Public Utility Commission of Texas (PUCT) immediately to file a complaint. They take unauthorized switching very seriously. Also document everything - bills, contracts, any communications with the broker. You may be entitled to have the original contract reinstated.
Warren's right about filing with PUCT. I'd also suggest sending a certified letter to the broker demanding they reverse the switch and compensate you for any overage costs. Document the difference between what you should have paid (6.8 cents) vs what you're being charged. That's your damages right there.
Thanks Warren and Larry. I've calculated we're looking at about $3,200 in additional costs over the remaining 8 months at current variable rates vs our original fixed contract. Filed the PUCT complaint this morning. The broker is now claiming they have a recording of me agreeing to the switch but won't provide it.
If they claim to have a recording, demand a copy through your attorney or the PUCT process. In Texas, they need clear, unambiguous consent for contract changes. Even if there's a recording, you can argue you weren't properly informed of the rate change implications. Keep pushing - unauthorized switching cases often settle in the customer's favor.
Vivian - Randy here. I've seen similar cases and the key is proving you didn't receive adequate disclosure of the new terms. Even with verbal consent, Texas law requires brokers to provide written confirmation of material changes within specific timeframes. Did you receive any written notice of the switch before it took effect? If not, that strengthens your case considerably.