Protect yourself from utility scams

HARRISBURG -- Here are a couple of things to know when someone selling electricity or gas knocks on your door:

• The agent first must identify himself or herself by name, the energy supplier the agent represents, and the reason for the visit.
• The agent must make clear that he or she is not working for, and is independent of, the customer’s local utility or any other supplier.
• The agent may not wear apparel or accessories, or even carry equipment containing branding elements, suggesting a relationship with a utility, government agency or other supplier. 
• An agent who conducts door-to-door activities, or appears at public events, must wear a prominently displayed identification badge. The badge must accurately identify the supplier, its trade name and logo. It must have the agent’s name and photo and a customer-service phone number for the supplier. 

The Pennsylvania Public Utility Commission on Thursday offered the consumer tips on door-to-door sales and marketing activities by agents of competitive electric and natural gas suppliers.

Many local consumers entering the competitive marketplace were slammed during the harsh winter of 2014 with variable electric rates that skyrocketed. Others have complained about the tactics of door-to-door marketers.

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“With spring upon us, warmer weather and more daylight, we traditionally see an uptick in door-to-door sales and marketing activity by competitive suppliers,” PUC Chairman Gladys M. Brown said.  “PUC regulations provide consumers with layers of protection to help them recognize deceptive sales practices and avoid falling victim to unscrupulous sales agents.”

From April 1 through Sept. 30 in Pennsylvania, hours for door-to-door sales and marketing expand one hour and run from 8 a.m. to 9 p.m. When a local ordinance has stricter limitations, a supplier must comply with the local ordinance.

Brown urged consumers to avoid intimidating sales pitches pressuring them to act now, reminding them that they are not required to choose a competitive supplier for their electricity or natural gas supply.

Should you elect to enter into a contract with a competitive supplier, you should expect the following once the supplier’s sales agent completes a transaction:

• Before the agent leaves the residence, you should receive a copy of each signed or initialed document relating to the transaction.
• The agent must explain the supplier’s verification process that is used to confirm your intent to switch suppliers.
• After customer verification, the agent must provide a copy of the full disclosure statement with all contractual terms and conditions.
• Agents must remind you that you may rescind the transaction within three business days after receiving the disclosure statement.

Agents also must immediately leave a residence when asked to do so, and must honor a customer’s request to be exempted from future door-to-door sales and marketing activities, Brown said.  Upon receipt of such a request, the agent notifies the supplier, which removes the customer from their databases within two business days.

A consumer's utility bill is split between the cost of the gas or electricity and the cost of maintaining the pipes or wires to carry the energy. A consumer can choose a supplier of gas or electricity on the competitive market. Chambersburg, which operates its own utilities, is the exception. Borough residential customers do not have a choice.

Brown urged customers facing an aggressive sales agent or suspecting a potential scam to contact the PUC’s Bureau of Consumer Services at 1-800-692-7380 and to alert their local utility.  Consumers who feel threatened or are concerned about their safety should contact local authorities to report the incident.

The complete list of regulations governing marketing and sales practices for Pennsylvania’s retail residential energy market is found at 52 Pa. Code, Chapter 111.

Consumers interested in learning about or switching suppliers of electricity or gas can visit www.PAPowerSwitch.com (electric) and www.PAGasSwitch.com (natural gas) --neutral, independent websites operated by the PUC.