District of Columbia Attorney General Brian L. Schwalb has issued a sharp warning to residents about an ongoing wave of deceptive sales tactics by third-party energy companies operating across the District.
These companies are pressuring residents to switch from regulated utility providers, such as Pepco and Washington Gas, only to saddle them with higher rates under contracts that are misleading or outright illegal.
“District residents should be on high alert if someone asks them to switch energy providers as multiple third-party energy companies are using illegal pressure tactics to get D.C. residents to sign predatory contracts,” Schwalb said. “These scams use a variety of tricks to lure customers in with promises of lower utility bills and then trap them into paying outrageous rates long-term. D.C. residents should report any deceptive or high-pressure sales tactics to our Office of Consumer Protection.”
The Office of the Attorney General (OAG) has received numerous complaints detailing how these companies use door-to-door visits, phone calls, mailers, and even appearances at community events like farmers’ markets to convince residents to switch providers. They often disguise themselves as representatives of Pepco, Washington Gas, or even the D.C. government — an act Schwalb’s office confirms is illegal.
The warning comes as many D.C. households continue to struggle with high monthly utility costs.
Pepco and Washington Gas, the District’s regulated utility providers, offer what’s known as a “standard offer of service” rate, typically far lower than what these third-party companies charge once initial promotional offers expire. Residents who remain with Pepco or Washington Gas are automatically enrolled in these regulated rates and are under no obligation to switch providers.
Some of the deceptive tactics reported to the OAG include:
- Salespeople are requesting to see utility bills while falsely claiming to represent Pepco, Washington Gas, or the D.C. government.
- Urgent-looking mailers that mimic official notices but are from private companies.
- Claims that residents must switch providers or that switching will save them money — without disclosing that the lower rate is temporary and subject to a sharp increase.
The OAG advises residents to be wary of any incentive offers, such as gift cards or “signing bonuses,” tied to switching services. They urge consumers to ask critical questions before agreeing to any new energy contract, such as:
- How long does the introductory rate last?
- What is the rate after the discount period ends?
- Is there a cancellation penalty?
- Is the rate fixed or variable?
The law requires all third-party salespeople to identify themselves and their companies, present a photo ID, and obtain the customer’s permission before initiating their pitch. They must also allow potential customers to complete verification calls independently, without interference or coaching—something the OAG says is frequently ignored.
If a resident believes they’ve encountered deceptive or illegal sales behavior, they are encouraged to report it to the Office of Consumer Protection at 202-442-9828, by email at consumer.protection@dc.gov, or by filing a complaint online.
Customers who switch energy providers have a three-day grace period to cancel without penalty. After that, fees may apply depending on the contract. For additional help canceling or switching back, residents can contact the Office of the People’s Counsel at (202) 727-3071 or the D.C. Public Service Commission at (202) 626-5120.
“Don’t be tricked into paying more,” an official said. “If it sounds too good to be true, it probably is.”
