The Texas electricity market attracts two kinds of companies: legitimate providers and predators who profit from confusion.
Some tactics are outright illegal—switching your account without permission, threatening fake disconnections, charging for services you never ordered. Others are technically legal but designed to exploit you—teaser rates that evaporate after one month, fees buried so deep in contracts that even lawyers miss them, “free electricity” plans with daytime rates that guarantee you pay more.
Here are the seven most common electricity scams in Texas, exactly how they work, and how to make sure you never become a victim.
1. Slamming: Unauthorized Provider Switching
How it works: A door-to-door salesperson or telemarketer asks to see your electricity bill “just to compare rates.” They use your account number to switch your service without permission—a practice called “slamming.”
DATA: Slamming is illegal in Texas, and providers can face significant penalties. First Choice paid $25,000 to settle allegations of unauthorized customer switching. Despite penalties, slamming remains one of the most common complaints filed with the Public Utility Commission of Texas (PUCT). Established providers like TXU Energy and Reliant Energy have strong regulatory track records you can verify.
Warning signs:
- Someone asks to see your full electricity bill
- You receive a welcome letter from a provider you didn’t contact
- Your bill arrives from a different company than expected
- You get a cancellation notice from your current provider
How to avoid it:
- Never show your account number to unsolicited salespeople
- Verify all door-to-door salespeople have a PUCT-required badge showing the provider’s name, PUCT certificate number, and toll-free verification number
- If you want to compare rates, contact providers yourself or use PowerToChoose.org
- Keep records of all provider communications
If it happens to you: The PUCT has a formal resolution process under Substantive Rule 25.495 for returning you to your original provider and resolving billing issues. You should not be charged for services you didn’t authorize.
2. Fake Disconnection Threats
How it works: You receive a call from someone claiming to be your electricity provider saying your power will be shut off in 1-2 hours unless you pay immediately—usually via gift cards, prepaid debit cards, or wire transfer.
DATA: This is the most reported electricity scam in Texas. Scammers use urgent language and pressure tactics to prevent you from thinking clearly or verifying their identity.
Warning signs:
- Threats of immediate disconnection (within hours)
- Demands for payment via gift cards, wire transfer, or cryptocurrency
- Caller won’t let you hang up to call back on the official number
- Caller ID shows your provider’s name (can be spoofed)
- They refuse to provide a supervisor or call-back number
The truth: In deregulated Texas, legitimate disconnections follow strict rules:
- You must receive written notice at least 10 days before disconnection
- Disconnections cannot occur on weekends or holidays
- Your retail electric provider (REP) will never call demanding immediate payment
- No legitimate company accepts gift cards as payment
How to avoid it:
- Hang up immediately on any disconnection threat call
- Call your provider directly using the number on your bill
- Never provide payment information to inbound callers
- Report the scam to your provider and the PUCT at 1-888-782-8477
3. Teaser Rates That Disappear
How it works: A provider advertises an incredibly low rate—sometimes as low as 5-7 cents per kWh. What they don’t clearly disclose is that the rate only lasts 1-3 months, then jumps dramatically.
DATA: Teaser rates typically last only one to three months, and many homeowners don’t notice the increase until receiving a massive bill. The low introductory rate often requires specific usage levels—if you use more or less, you don’t get the advertised price.
Warning signs:
- Rates that seem too good to be true (under 8 cents/kWh in 2026)
- Promotional periods buried in fine print
- Aggressive sales tactics pushing immediate sign-up
- Difficulty finding or accessing the Electricity Facts Label (EFL)
How to avoid it:
- Always read the Electricity Facts Label (EFL) before signing
- Look for the “Promotional Period” section in the EFL
- Calculate your actual cost at your usage level, not the advertised sample rates
- Compare the rate after the promotional period ends
- Be especially wary of plans requiring exactly 2,000 kWh usage for the best rate
Protection tip: Understanding the EFL is one of the best ways to avoid deceptive electricity contracts.
4. Hidden Fee Traps
How it works: A plan advertises a low energy rate but buries expensive fees in the EFL. Common hidden charges include minimum usage fees, high base charges, and conditional bill credits that disappear if you don’t hit specific usage targets.
EXAMPLE: A plan might advertise 9 cents/kWh but include:
- $9.95-$20 monthly base fee
- Minimum usage requirement (500-1,000 kWh)
- Bill credits that only apply if you use exactly 1,000 kWh
- $150+ early termination fee
Warning signs:
- Advertised rate seems lower than competitors
- EFL is hard to find or download
- Multiple asterisks in rate advertising
- “Free electricity” claims
- Base charges that seem high relative to your usage
How to avoid it:
- Calculate your true cost using the EFL formula:
(Monthly Cost at Your Usage) ÷ Your kWh Usage = True Rate - Watch for minimum usage penalties—if you use less electricity than required, you pay extra
- Compare the average price at your actual usage level (found at the top of the EFL)
- Be skeptical of “free nights” or “free weekends” unless you can shift most usage to those times
- Use your actual historical usage from bills, not the EFL’s sample 500/1,000/2,000 kWh examples
Reality check: If the EFL isn’t easy to find, that’s a red flag signaling hidden fees or tricky terms.
5. Cramming: Unauthorized Charges
How it works: Your electricity bill includes charges for services you never requested or authorized—products like insurance, home warranties, or “energy management” services.
DATA: Cramming is illegal in Texas, and the PUCT enforces these violations. However, cramming remains common because many consumers don’t carefully review each line item on their bills.
Warning signs:
- Unfamiliar charges on your electricity bill
- Services you don’t remember signing up for
- Vague line items like “premium service” or “enhanced protection”
- Small monthly charges (often $2-$10) that add up over time
How to avoid it:
- Review every line item on your monthly bill
- Question any charge you don’t recognize
- Keep records of what services you actually authorized
- Never sign documents without reading them completely
- Be cautious about “free trial” offers that auto-enroll you in paid services
If it happens: Contact your provider immediately to dispute unauthorized charges. If they won’t remove them, file a complaint with the PUCT.
6. Phishing Emails and Text Scams
How it works: You receive an email or text that looks like it’s from your electricity provider. It includes the provider’s logo and realistic formatting, asking you to:
- Click a link to view your bill or avoid disconnection
- Update payment information
- Verify your account details
- Download an attachment
DATA: Phishing scams are increasingly sophisticated, using legitimate-looking branding and urgent language to trick you into clicking malicious links or providing sensitive information.
Warning signs:
- Urgent action required (account suspended, payment failed)
- Requests to click links or download attachments
- Asks for account numbers, Social Security numbers, or payment details
- Generic greetings (“Dear Customer”) instead of your name
- Slight misspellings in the sender’s email address (reliantenerqy.com instead of reliantenergy.com for Reliant)
- Threats of immediate service interruption
How to avoid it:
- Never click links in unsolicited emails or texts
- Type your provider’s URL directly into your browser
- Verify your provider’s official contact methods
- Check sender email addresses carefully for subtle misspellings
- Call your provider using the number on your bill to verify any suspicious communication
- Enable two-factor authentication on your account if available
Red flag: Legitimate providers won’t ask for sensitive information via email or text.
7. Too-Good-To-Be-True Promotions
How it works: Scammers pose as electricity providers offering unbelievable deals: free electricity for a year, guaranteed rates below market value, or special “government programs” that don’t exist.
EXAMPLE: Common fake promotions include:
- “Free electricity for low-income households” (legitimate programs exist, but scammers impersonate them)
- “Government energy rebate—claim yours now”
- “Refer 3 friends and get free power for life”
- “Special senior citizen discount—verify your Social Security number”
Warning signs:
- Offers that sound too good to be true
- Requests for Social Security numbers or bank account details upfront
- Pressure to sign up immediately before “the offer expires”
- Provider names that sound similar to legitimate companies but with slight variations
- No PUCT certificate number or it doesn’t match PUCT records
How to avoid it:
- Verify any provider using the PUCT’s Directory of Retail Electric Providers
- Check that the provider has a valid PUCT certificate
- Research the company’s complaint history
- Be skeptical of unsolicited offers
- Contact providers directly rather than responding to ads or calls
Verification: Every legitimate retail electric provider in Texas must have a PUCT certificate number. Look it up before signing anything.
How to Verify a Legitimate Provider
Before switching providers or responding to any electricity offer, verify legitimacy:
1. Check PUCT Certification Search the PUCT Directory of Retail Electric Providers to confirm the provider has a valid certificate under section 16 TAC § 25.107.
2. Review Complaint History Check the provider’s complaint record. While all providers receive some complaints, watch for:
- High complaint ratios relative to customer base
- Patterns of slamming or billing complaints
- Recent enforcement actions or fines
3. Verify Door-to-Door Salespeople Every legitimate door-to-door salesperson must wear a badge showing:
- Retail electric provider’s name
- PUCT certificate number
- Toll-free verification number
Call the number on the badge before providing any information.
4. Get Everything in Writing Legitimate providers will:
- Provide Terms of Service before enrollment
- Give you access to the EFL
- Allow time to review documents
- Never pressure you to sign immediately
What to Do If You’ve Been Scammed
If you believe you’re a victim of an electricity scam:
Step 1: Contact Your Current Provider
- Notify them of unauthorized switching or charges
- Request account protection measures
- Document all communications
Step 2: File a PUCT Complaint
- Online: PUCT Complaint Form
- Phone: 1-888-782-8477
- The PUCT will investigate and can force providers to correct unauthorized switches or charges
Step 3: Report to Additional Agencies
- Texas Attorney General: texasattorneygeneral.gov - Consumer Protection Division investigates scams
- Federal Trade Commission: ReportFraud.ftc.gov or call 1-877-382-4357
- Local Law Enforcement: If someone shows up in person making threats
Step 4: Protect Your Accounts
- Change account passwords
- Monitor bills closely for additional unauthorized charges
- Consider freezing credit if you provided Social Security number or other sensitive information
Step 5: Document Everything
- Save all emails, texts, and recorded calls
- Take photos of door-to-door salespeople and their badges
- Keep copies of bills showing unauthorized charges
- Note dates, times, and names of everyone you speak with
Your Rights as a Texas Electricity Consumer
Texas law protects you from deceptive electricity practices:
You have the right to:
- Choose your electricity provider without harassment
- Receive clear, accurate pricing information
- Get written disconnection notice at least 10 days in advance
- File complaints without retaliation
- Accurate billing
- Switch providers without unauthorized interference
Providers must:
- Provide Electricity Facts Labels for all plans
- Honor advertised rates and terms
- Process switches only with your authorization
- Follow PUCT complaint resolution processes
- Maintain valid PUCT certification
Staying Safe in Texas’s Electricity Market
Texas’s deregulated market offers real benefits—but only if you can avoid the traps. Here’s your protection checklist:
Before Signing:
- ✓ Verify PUCT certification
- ✓ Read the complete EFL
- ✓ Calculate costs at your actual usage
- ✓ Check complaint history
- ✓ Get everything in writing
Red Flags to Reject Immediately:
- ✗ Requests for gift cards or wire transfers
- ✗ Immediate disconnection threats
- ✗ Pressure to sign without reviewing documents
- ✗ Requests to see your account number
- ✗ Rates under 8 cents/kWh with no clear explanation
- ✗ Difficulty accessing the EFL
Good Practices:
- Review bills monthly for unauthorized charges
- Keep provider contact information from your bill, not from unsolicited communications
- Research before switching
- Report suspicious activity immediately
- Use trusted comparison tools like PowerToChoose.org or ComparePower.com
The Bottom Line
Scammers target Texas electricity consumers because the deregulated market creates confusion about who’s legitimate. But armed with knowledge, you can protect yourself.
Remember the core rule: If it feels like pressure or too good to be true, walk away and verify independently.
Your electricity choice should be based on research, not fear or false promises. Take your time, verify everything, and don’t let anyone rush you into a decision.
For more guidance on choosing a provider, read our guides on understanding the Electricity Facts Label and how to switch electricity providers safely.
Need Help?
- PUCT Consumer Hotline: 1-888-782-8477
- Report Fraud to FTC: 1-877-382-4357
- Texas Attorney General Consumer Protection: texasattorneygeneral.gov
Compare legitimate Texas providers: Visit our provider directory to research licensed electricity companies and read unbiased comparisons before making your choice. Start with our best electricity providers in Texas ranking or explore specific provider comparisons like TXU vs Reliant.