- jasoneatspizza
- Jul 6, 2010
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I'm fuzzy on the legal details but some deregulation in PA has led to some odd scams. The short of it is that energy-related utilities have been deregulated a bit in order to "encourage competition." Though the electricity is still all generated by the same power plants as ever the suppliers can change. The idea is that you can choose your supplier so you can get the best rates. I'm not too keen on all the details but it's basically increasing the number of electricity resellers that can sell you electricity even though they all end up using the same infrastructure anyway. It's pretty stupid.
But it has let all sorts of scammers weasel their way into the system. Now we have to deal with fast talking people going door to door using pretty standard tactics to get your money. Basically they start with the scare; "your rates are going to go up!" is the common one. Now we all don't want to pay more for stuff so it gets peoples' attention. However, it's a huge red flag on its own because they're going door to door when you haven't gotten any mail based on rate increases. They talk fast and try to confuse you, sometimes ask to see your bills, or whatever. In the end it's always "here sign this and your rates will stay the same/decrease" but they won't let you see the details. Just "sign this right now or you'll have to pay more pretty much immediately." Another one is people selling "insurance" against rate increases. They almost always quote some new law that nobody has heard about yet that just happened to go through yesterday/this morning that will lead to massive rate increases unless you sign this paper right now. They act like they're doing you a favor.
What they don't tell you is that you end up signing a year+ long contract with an energy supplier middleman type thing. See, you can basically just buy power directly from the company that owns the plants anyway so why bother paying a middle man? They also lock you into rates that are waaaaaaaay higher than what you'd be paying even if rates go up. The "insurance" is pretty much bullshit.
How do you deal with this? If somebody knocks on your door and starts talking about electricity rates just tell them to gently caress off and shut the door. Don't sign anything, don't show them any of your utility bills, don't let them get any information. Just tell them go away.
I'm in Philly, so I've had some of these people come knocking. When you ask who it is, they'll say "power company" to make you think it's your legit power company. So before you even open the door, ask something unambigous like WHICH POWER COMPANY DO YOU REPRESENT
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