A notable increase of assertive energy salespeople are targeting companies through mailings, phone calls, and door-to-door soliciting. “Slamming” occurs when a misleading salesperson obtains a company’s electricity account number, and switches their supplier without the company’s knowledge or consent, effectively terminating the company’s existing supplier contract. Company owners whose supplier contracts are terminated without authorization face hefty financial penalties. Many misleading energy salespeople are unlicensed and inexperienced. Not only do these unethical salespeople dupe customers, but also they often violate “do not call” lists and marketing regulations set forth by state utility commissions.

Customer Fees & Penalties

Most electricity suppliers charge an early termination fee to a customer that terminates a contract before it expires. If the customer requests to reenroll the account, some suppliers charge a “gap in service” penalty. Each supplier contract is different in how penalties are assessed. Some suppliers charge a specific penalty fee per meter. Other suppliers calculate a penalty fee based on the contract’s remaining time and electricity usage.

How to Prevent Slamming

1. Make your employees aware of misleading callers. Even employees that are not authorized to discuss your utility bills or make contract decisions can be hounded by a caller and tricked into providing confidential information.
2. Protect your energy bills, account numbers, and related information as you would treat any confidential business information. The account number on your monthly electricity bill is the only requirement to switch suppliers.
3. Beware of an energy salesperson that walks into your building and claims to represent the electric utility. Anyone who works for the electric utility already has digital access to all of your account information.
4. Beware of promotional offers that require your signature.
5. Advise your employees to block energy salespeople from engaging with other employees.
6. Ask callers if they are properly licensed with the state utility commission.
7. Request to be removed from call lists.
8. Review your electricity bill each month.

Since 2001, MTI has endorsed APPI Energy to provide data-driven procurement and consulting solutions to members. APPI Energy is available to review members’ electricity bills and help prevent slamming. If you become a victim of electricity supply slamming, or if you’d like a courtesy consultation, contact APPI Energy at 800-520-6685.