Laura Askew was shocked to see her electric bill climb from a typical $75 a month to staggering heights of $200, $500, then even $800 in 2023.
Upon examining her bill more closely, she discovered that it listed WGL Energy Svcs. as her supplier instead of Pepco.
Concerned about the drastic increase while living alone and not using extensive heating or cooling, she reached out to both Pepco and Washington Gas, which is associated with WGL Energy, seeking answers.
Despite her inquiries, Askew received no satisfactory explanations.
Compounding her frustrations were repeated calls from WGL Energy and other unidentified companies demanding that she pay a $70 fee to exit her contractual obligations, a contract she insists she never agreed to in the first place.
Bernie Tylor, public relations manager for WGL Energy, asserts that the company values integrity and compliance while employing extensive verification methods to protect genuine customer enrollments.
However, Askew is not alone; her neighbors have also experienced unexpected and hefty bills, with one elderly resident even moving out of her home due to concerns about her oxygen machine after receiving a disconnection notice.
The practice of switching utility providers without the consumer’s consent is commonly referred to as ‘slamming.’
This deceptive practice emerged from D.C.’s deregulated energy market, which was designed to increase consumer choice and lower prices when implemented in 2001.
Yet, the result has often been an increase in costs for many District residents.
Countless consumers find their electricity services redirected to different suppliers without prior consent, often leading to complex contracts with fluctuating rates that begin with low initial offers but quickly escalate, resulting in staggering bills or subsequent threats of disconnection.
Laurel Peltier, chair of the Maryland Energy Advocates Coalition, states that most consumers who explore retail energy options end up paying more.
She emphasizes that third-party energy rates in the District are “horrendous.”
According to a 2021 Wall Street Journal investigation, U.S. energy consumers paid $19.2 billion more to third-party suppliers than they would have to their traditional utility companies.
In D.C., the overcharges appear especially pronounced, with 65 percent of energy sales attributed to third-party suppliers, based on 2023 data from the U.S. Energy Information Administration.
The issue has garnered the attention of D.C.’s Office of the People’s Counsel and Attorney General Brian Schwalb, both of whom have issued warnings about possible scams targeting District residents.
The alerts outline the misleading tactics employed by third-party energy companies aiming to coerce or deceive residents into altering their energy providers, typically at higher rates than Pepco or Washington Gas.
Warnings caution consumers against salespeople posing as Pepco, Washington Gas, or D.C. government representatives who request to view their utility bills; this information can then be misused to switch providers without the customer’s informed consent.
Moreover, mailers labeled ‘urgent’ that closely mimic official communications from utility companies are commonly used to mislead customers.
The Attorney General further advises D.C. residents to remain cautious of assertions that they are ‘obligated’ to choose a provider or that switching will result in guaranteed lower bills, as these introductory rates can sharply increase over time.
The Office of the People’s Counsel is actively investigating reports of unauthorized utility switches, noting an egregious case in which an individual was duped by a scammer impersonating a representative of the pandemic rental aid program, STAY DC.
After unwittingly sharing her bill, the resident found that both her gas and electric accounts had been transferred to a third-party provider without her consent.
OPC advises consumers to refrain from sharing personal details and to meticulously review contracts prior to switching utility providers.
In a statement, Adina Kauzlarich, senior communications manager at Pepco, stated, “To enroll with a third party, customers must provide their service number or present a copy of their bill.”
Pepco cannot intervene in disputes involving third-party suppliers but does encourage customers to revert to Standard Offer Service with Pepco at any point, noting that customers should be aware of any cancellation fees outlined in their contracts.
Since at least 2022, OPC has received thousands of complaints regarding third-party energy suppliers in the D.C. area.
In a Freedom of Information Act request, the agency shared more than 1,000 pages of complaints related to just nine of the 236 approved third-party suppliers in the District.
The majority of grievances highlight unclear and misleading charges that culminate in inflated bills, with consumers reporting enrollment with these third-party entities without their explicit understanding or consent.
One resident described being misled into believing she would receive a discounted rate only to face substantially higher bills, resulting in financial hardship.
Another senior citizen was drawn to enroll with the third-party supplier Smart Energy under the false pretense of receiving a promised voucher, which was never delivered.
In a particularly troubling complaint, a family with a wheelchair-bound member and four chronically ill children faced disconnection of their electricity, a frequent consequence of exorbitant third-party charges.
Vulnerable groups, including seniors on fixed incomes, households with children, and individuals relying on power-dependent medical equipment, are often left without necessary electricity and heating due to these practices.
Consumers finding themselves in disputes over charges generally have limited options for recourse.
In one complaint, OPC highlighted that a third-party supplier declined to revise a bill even when it was double the utility’s rate.
Another consumer who sought a reassessment from Mpower, a third-party supplier, received a response asserting that their enrollment was valid and, therefore, Mpower had no obligation to refund or evaluate rates against the utility’s charges.
For households at risk of disconnection or displacement, the Department of Energy and Environment’s Low-Income Home Energy Assistance Program has provided periodic aid.
The agency reports assistance to over 18,000 households in the past, yet it faced more than 9,000 requests for help in fiscal year 2025, and funding for the program was depleted by March.
Those believing they have fallen victim to third-party supplier scams are encouraged to reach out to the Office of the Attorney General’s Office of Consumer Protection at 202-442-9828, via email at [email protected], or submit an online complaint.
Additionally, complaints can be lodged with OPC or the DC Public Service Commission.
This article has been revised to clarify that Pepco customers can switch back to a third-party supplier at any time, without a specified 10-day limitation.
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