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Jun 10, 2023

Consumer advocates warn about energy price hikes and door

A twirly compact fluorescent lightbulb. Harrisburg, Pa. — Several electric

A twirly compact fluorescent lightbulb.

Harrisburg, Pa. — Several electric utility providers have notified customers that the cost of electricity is increasing this month for "default service." This price increase is providing an ideal environment for door-to-door energy salespeople to pressure homeowners into price-gouging agreements.

The Pennsylvania Office of Consumer Advocate (OCA) and the Office of Attorney General urge Pennsylvanians to know their options in response to price changes and to be careful and wary about door-to-door sales.

"From the gas pump to the grocery store, many Pennsylvanians are feeling squeezed financially because of higher prices for essential items, so it certainly comes as unwelcomed news that many electric utilities are increasing their prices for select customers," Attorney General Henry said. "Consumers should know they have options."

Always be vigilant while dealing with salespeople who might try to pressure you into making a quick decision. Take your time to decide what is best for you and your household.

The competitive market may provide some savings, but before agreeing to anything, make sure that you know product terms, fees, and variability allowed in an energy contract while shopping around for providers.

The OCA offers these tips for seeking out alternate energy suppliers:

Consider the standard offer program or customer referral program: These programs provide a 12-month fixed rate contract that offers 7% off the utility price at the time of your enrollment. Your rate will be fixed, and it will be lower than the utility price at the time you enroll, but the actual percentage of the savings you see may change (or be eliminated) if the price to compare changes in the future. Contact your utility company to find out more.

Use OCA's shopping guide or shop on PA Power Switch: Both are official state-hosted and monitored websites. All suppliers listed are licensed to provide service in Pennsylvania.

Learn about the offers before signing up for service: Looking at the price per kWh is not the only factor. Some suppliers charge additional fees that may include but are not limited to monthly fees, customer charges, or early cancellation fees.

After enrollment, plan for the end of your contract: Although suppliers are required by the Pennsylvania Public Utility Commission's regulations to notify customers of the end of their contracts, it is best to keep track of this information to ensure the account is not rolled into a variable or higher rate when the contract expires.

Look at your bills every month: Be sure to monitor your monthly electric bills to ensure you are being charged the agreed-upon rate with your selected supplier.

Regardless of whether you switch to another supplier, you should consider enrolling in a budget billing program. This program spreads seasonal bill increases over a period of time. Budget billing is available to all consumers regardless of income. To enroll, contact your utility company directly.

"The Office of Consumer Advocate wants consumers to be prepared for increased energy costs and know their rights," Pennsylvania Consumer Advocate Patrick Cicero said. "Door-to-door salespeople should have clear identification. You are not required to let them into your home and you may ask them to leave at any time. Should you sign a contract with a salesperson at your door, you may rescind that contract within three business days."

Contact the Office of Consumer Advocate if you have questions: OCA has a consumer hotline that can assist households who have questions about their energy bills. Call 1-800-684-6560 Monday through Friday from 8:30 a.m. to 5 p.m. or email us at [email protected].

Consumers who believe they have been taken advantage of or victimized by their energy company should file a complaint online or contact the Office of Attorney General at [email protected] or 1-800-441-2555.

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This story was compiled by an NCPA staff reporter from submitted news. To see a list of our editorial staff please visit our staff directory.

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