News & Events

Unauthorized Switching of Accounts and Slamming by Third Party Energy Suppliers

As we enter into the spring energy buying season, AOBA would like to remind members of the unwanted complications that can arise due to slamming by third party energy suppliers.

Slamming occurs when a customer with an existing third party energy supply contract undergoes an unauthorized and often illegal transfer of supply service to another energy provider. Most often, slamming occurs when telemarketers for third party supply companies call a member’s property and switches the customer’s electric service through recorded voice authorizations. For example, a person from a member property that speaks to a telemarketer is often recorded as saying ‘Yes’ to a single question and the supply service is automatically switched.

Utilities will not contact an organization to verify whether or not the switch to the new supply provider was authorized. Once the utility receives notification of the switch to a new supplier, the switch to the new provider occurs automatically. Slamming by a supply provider creates multiple problems for members that can range from penalties for breach of contract with their current supplier to penalties from the slamming supplier, all of which may be labor intensive to correct.

AOBA and AOBA Alliance, Inc. track instances of slamming and report such occurrences to the appropriate parties. If you experience slamming by a supplier, please try to obtain the information of the representative who contacted you and the company they represent. This information can be reported to AOBA by contacting Frann Francis or April Kreller at the AOBA office.