Alert to Warn DC Residents About Energy Company Scams
Over the past two months, unauthorized individuals have been entering my apartment building and going door-to-door, pressuring residents to switch their energy provider. This has been deeply unsettling—especially knowing that these tactics often target the elderly and vulnerable.
Please stay alert, don’t share personal information with unsolicited visitors, and report any suspicious activity to building management or local authorities.
Spread the word and stay safe out there!
Attorney General Schwalb Issues Alert to Warn DC Residents About Energy Company Scam
Multiple Companies Are Using Deceptive Tactics to Pressure or Trick DC Consumers into Switching Energy Providers, Then Charging Higher Rates
Attorney General Brian L. Schwalb today issued the below consumer alert to warn DC residents about third-party energy companies using deceptive and potentially illegal sales tactics to pressure or trick DC consumers into switching energy providers. These third-party energy companies also often charge more for energy than Pepco or Washington Gas.
“District residents should be on high alert if someone asks them to switch energy providers as multiple third-party energy companies are using illegal pressure tactics to get DC residents to sign predatory contracts,” said Attorney General Schwalb. “These scams use a variety of tricks to lure customers in with promises of lower utility bills and then trap them into paying outrageous rates long-term. DC residents should report any deceptive or high-pressure sales tactics to our Office of Consumer Protection.”
CONSUMER ALERT: THIRD-PARTY ENERGY COMPANY SCAMS
Has anyone approached you asking you to switch energy suppliers? The Office of the Attorney General (OAG) has learned of multiple third-party energy companies using sales tactics that we believe are deceptive and illegal, and pressuring or tricking DC residents into signing contracts. These companies also frequently charge customers higher prices for energy than Pepco or Washington Gas.
What is a third-party energy company?
A third-party energy company is any company selling electricity or gas that is not Pepco or Washington Gas, which are the regulated utilities. Pepco and Washington Gas customers pay a regulated “standard offer of service” rate. The Pepco or Washington Gas standard rate is often significantly less than the rate third-party energy companies charge.
District residents may choose to buy energy from providers other than the regulated utilities, and third-party energy companies may reach out to you to encourage you to switch. These companies may visit your home, call you, mail you brochures, or attend public events (like local farmers’ markets). They may also offer incentives, like free gift cards or “signing bonuses,” to persuade you to switch services.