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  • Writer's pictureGabe C

Scams When Buying Residential Electricity

Home Electricity Scams on Social Media
Scams on Social Media

Have you noticed how social media is used to deceive or scam people? It is very easy to post on social media. There are many scams on social networks when buying residential electricity.

Social media lend themselves to scams when buying residential electricity

Why do social media is used for scams?

Easy, this is because posting on social media is free, is very easy to create an ad, and it reaches thousands of people and many of those people are naive.

Many of us are naive and just because the price or offer is very good, we fall for scammers. There are times when we don't even pay a little attention and we are already hooked on the lie. Scammers take advantage of our needs. In this case, we all need electricity at home and since electricity prices are high right now, scammers make us offers that we cannot resist.

Is This Offer or Electricity Service Possible?

We are in a time when we cannot live without electricity. As I mentioned a moment ago, electricity prices and deposits with postpaid electricity companies are through the roof. The reason for that is that energy prices are regulated by the wholesale price of natural gas. So some people see this as an opportunity to scam when buying residential electricity. There are residential electricity offers that are impossible. Think about this, why is there only one electricity company offering this?

Energy Cannot Be Unlimited

The energy we receive at home comes at a very high cost. It is very important to understand that 80% of the electricity we use comes from non-renewable resources. It costs a lot of money and effort to get it to our homes. We all use electricity in different ways, and the weather, which changes a lot, affects our energy use.

Just like the gasoline we use in our cars, the prices are not fixed and neither are they unlimited. Gasoline, natural gas, and electricity are energy, whether for one thing or another. They cannot be given for unlimited use at a fixed price.

Here I show you the average electricity use/cost by residence. According to the Texas Public Utility Commission.

Usage/Cost Average Home Electricity in Texas
Usage/Cost Average Home Electricity in Texas

As you can see, those offers are far below reality.

Scams When Buying Residential Electricity

How to catch them...

  • See the quality of the ad.

  • See if the power company really exists.

  • Ask for the electricity company's website.

  • What is your address, physical or PO Box.

  • What is the certification number with the PUC.

  • See the sales agent profile, how old it is, and how commented it is.

  • Ask for the profile of the electricity company that is offering.

  • They have reviews or comments outside of social media like Google, Bing, or local listings.

  • Be careful with payment methods, do not send money to a person or a payment application such as Zelle, Venmo, Cash App, etc.

A real sales agent has to answer all these questions. Regardless of whether he works for one or several electricity companies. We work for several electricity companies and we have all that information that I mentioned a moment ago. We will never ask you to send the money to us, you will always make payments in the name of the electricity company.

Light Plan Annual Average Use

To tell the truth, if there is an electricity plan that charges you the same every month. Even so, the monthly payments don't compare to the scam shown above. This electricity plan is offered by very few electricity companies and I am going to give you the details.

1. A study is made of the average energy use of the residence in the last 5 years. This study takes 5 business days. If you have not lived in your residence for those 5 years, then they will take into account the average use of the people who lived there before.

2. The electricity company is going to cover itself so as not to lose and it is going to make an estimate of what the electricity rates may go up.

3. A credit check will be done. The contract is for a minimum of 12 months.

4. Even so, if the customer exceeds the estimated average usage, the excess energy used will be charged.

Pay the same amount of electricity each month with Solar Panels

The other way to pay the same amount each month will be to have a solar panel system. In the same way, the cost of solar panels is the average cost of electricity in the last 12 months. This SCAM electricity does not come from solar-generated energy.

The Difference in the Cost of Electricity with other Services

Electricity is not like the internet, cable, or cell service. These services can be given without limit since they are produced by computers, servers, etc. and it is not compared to the cost of bringing these services to our homes such as electricity.

To conclude and DO NOT fall into a SCAM

Be realistic, remember why I tell you that electricity cannot be free or unlimited. Someone is paying for someone else's excess energy use.

There is something to worry about. Within the world of residential and commercial electricity, there is something called "true up" or "real use". This is an assessment of a home's actual energy use. If someone is using this scam, at some point they will have to pay for the excess that they have not paid and I can assure you that this payment will not be small.

Follow our blog and you will find many ideas on how to save electricity at home.

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