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Utility scam shield

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Electricity scams and high-pressure sales spike whenever rates rise. There are two things to watch for: outright fraud, and legal-but-deceptive sales practices that quietly pad your bill.

Outright scams (always illegal)

• “Your power will be shut off in 30 minutes”

  Your utility never demands instant payment by phone to avoid same-day shutoff. Hang up and call the number on your bill.

• Demands for gift cards, crypto, or wire transfer

  No legitimate utility or supplier accepts gift cards or crypto. This is always a scam.

• Door-to-door “rate reps” wanting to see your bill

  They use your account number to switch your supplier without clear consent (“slamming”). You never need to show your bill to keep your service.

• “You’re owed a refund — confirm your account number”

  Refunds appear on your bill, not via callers asking for account or bank details.

How a supplier can quietly pad your bill

These practices are generally legal — which is exactly why they're easy to miss. This doesn't mean every third-party supplier is bad; some offer genuinely good fixed rates. The point is to read the fine print and check the rate yourself.

• Teaser rates that expire

  A low “intro” rate for the first few months that then resets — often well above your utility's standard rate — while the contract quietly auto-renews. The headline number isn't the number you keep paying.

• Variable rates tied to nothing

  A “variable” or “month-to-month” rate that can change every billing cycle, with no cap and no public index you can check. Your price can climb without warning.

• Monthly fees on top of the rate

  Flat “service,” “account,” or “membership” charges added every month regardless of how much electricity you use — they don't show up in the advertised cents-per-kWh.

• Early-termination fees (ETFs)

  A penalty — often $100–$200 — to leave before the contract term ends. Check for it before you switch, and weigh it against what you'd save.

• “Guaranteed savings” with nothing in writing

  Door-to-door or phone pitches that promise you'll save versus your utility, with no written guarantee. A real fixed-rate offer puts the rate and term in writing.

• A rate above your utility's standard rate for the identical electricity

  The power is exactly the same no matter who supplies it. If a supplier charges more than your utility's Price to Compare / SSO / BGS / SOS, you're paying extra for nothing different.

These are widely documented practices flagged in consumer alerts from state utility commissions and attorneys general. Before signing with any supplier, read the contract's Terms of Service and the disclosure/“electricity facts” label, and compare the rate to your utility's standard rate.