DC electricity supplier scams: what every Pepco customer needs to know

If someone has knocked on your door, called you, or approached you at a community event offering to lower your Pepco bill — possibly with a gift card or signing bonus — read this before you do anything.

Washington DC's deregulated electricity market has become a hunting ground for predatory third-party energy suppliers. The DC Attorney General, the Office of People's Counsel, and the Department of Energy and Environment have all issued formal warnings. The problem is widespread, well-documented, and getting worse.

What is a third-party electricity supplier?

When DC deregulated its electricity market in 2001, the idea was to let competition drive prices down. In theory, you could shop around for a cheaper electricity supplier while Pepco continued to deliver your power through its lines.

In practice, for residential customers, it hasn't worked out that way. DC's Department of Energy and Environment analyzed 14 months of market data from 2023–2024 and found that DC residential customers of third-party suppliers paid, on average, 70% more for their electricity supply than they would have paid on Pepco's standard rate. There are 236 approved third-party electricity suppliers in DC. Most DC homeowners have never heard of them — they reach you through salespeople, not storefronts.

How the scam works — step by step

Slamming — being switched without your consent

The worst version of this is called slamming — when a supplier switches your electricity account without your knowledge or authorization. The DC Office of People's Counsel recorded 2,197 formal complaints about fraudulent or abusive treatment by retail suppliers between February 2022 and June 2025. That's only complaints against nine of DC's 236 approved suppliers.

Slamming often happens when a salesperson gets your account number — from your bill, from a database, or sometimes from your trash. You may not realize your supplier has changed until you see an unfamiliar company name on your next Pepco bill and a higher charge.

Seniors are targeted specifically

DC People's Counsel Sandra Mattavous-Frye confirmed publicly that these companies prey specifically on seniors and low-income residents. Salespeople have been documented standing outside social service buildings to approach clients as they leave. Phone calls targeting seniors on fixed incomes are common, offering gift cards and "special senior rates" that don't exist.

One senior in DC signed up with a third-party supplier on the promise of a voucher — which they never received. Another couldn't dispute charges even when their bill was double Pepco's rate because the supplier refused to recalculate. People with medical conditions requiring power-dependent equipment — oxygen machines, medical refrigerators — have had their power disconnected as a result of bills they couldn't pay.

Red flags — what to watch for

Your legal rights

By DC law, every third-party energy salesperson must:

• Tell you what company they represent and that they are selling a service
• Ask for your permission before beginning the sales pitch
• Present photo ID clearly stating their name and the company's name
• Allow you to complete the Third-Party Verification Call completely alone — without the salesperson present or coaching you

If any of these steps are skipped, the sale may be illegal. You have the right to cancel within 3 days of signing with no fees. After that, check your contract for early termination fees — but you still have the right to switch back to Pepco.

What to do if it happened to you

You can switch back to Pepco's standard rate at any time. Contact Pepco directly — they can reverse the switch. To report a scam or get help:

The connection to solar — they are not the same thing

This is worth saying clearly: the third-party supplier scam and legitimate free solar are completely different things.

A free solar PPA from a reputable company doesn't touch your electricity supplier at all. Pepco remains your utility and your supplier. Solar panels are installed on your roof to offset your Pepco usage — your relationship with Pepco doesn't change. Anyone telling you that going solar means switching your electricity supplier is either confused or misleading you.

Common questions