The energy industry has evolved since the start of deregulation when the US created the Federal Energy Regulatory Commission, or the FERC in 1977. In the early years of deregulation, the energy industry resembled that of the wild west. Energy suppliers adopted a practice called “slamming” which is when a supplier signs up a customer for third-party supply without the customer’s authorization. Without any type of legal ramifications, slamming became rampant within the industry. This led to stricter laws and regulations. Now, the practice of slamming is illegal yet that hasn’t seemed to deter some companies.
We have recently, within the past year, dealt with a number of our clients getting slammed. This is not only disruptive to the client, but also to us the broker – who are the ones that clean up the mess and have to deal with re-enrolling the client. I can not stress enough how frustrating this is. I understand that in any industry, you will have a few bad apples. Laws and regulations are implemented to limit these unsavory activities. Some people and companies just believe they are above the law. What they are actually doing is polluting the industry and breeding wariness among end users. Shame on you. We will continue to report you.
Energetek is committed to protecting our clients against slamming. If you are a victim of slamming you should:
- Contact your broker – they are there to help you navigate the next steps
- Contact your utility company – In the event that you do not have a broker, contact your utility company to notify them that you are a victim of slamming and that you did not authorize the transaction. They will also tell you WHO slammed you.
- Contact the supplier that you were switched to – demand the contract that was allegedly “signed” or authorized
- Report them – many states have complaint applications where you can file a formal complaint against these companies and individuals
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