How Can You Get Out of Switch Hold for Electricity?
Having a switch hold placed on your electric account is a very frustrating experience and just like a flat tire or locking yourself out of your house, it always comes at the most inconvenient time.
We are not going to lie – removing the switch hold takes a bit of a back and forth with your retail energy provider, but armed with the right information, you will be back to shopping for great electric plans in no time.
What is a Switch Hold?
A “switch hold” is a virtual lock placed on the meter of a specific residential address that is designed to prevent the account holder from switching electric companies before paying their overdue bills. If you had a switch hold placed on your account and you are in the process of moving homes, you need to act quickly. Switch holds may take 72 hours to be removed.
Why is a Switch Hold in Place?
So why would your electricity company put a switch hold on your account? There are generally two reasons:
- Your local transmission and distribution service provider (TDSP) has determined that meter tampering or theft of electric service has occurred at your address. Meter tampering refers to any sort of messing with the meter so that it incorrectly records the amount of electricity being used.
- You have unpaid bills with your retail electric provider (REP) and as a result, you entered into a deferred payment plan, agreeing to have a switch hold placed on your meter until you pay the remaining balance.
Both the above situations deal with a scenario where you are the holder of an indebted account. However, what if you just moved into a property that has a switch hold placed on the meter? How could that happen, you wonder…
Well, your electricity contract is actually tied to your address, not your person. If the last resident didn’t call the electricity provider to move out or cancel the account, the electricity will keep running. When it reaches a certain amount owed, the transmission and distribution service provider put a switch hold on the account.
This might create a problem for you, the new tenant, as you now find yourself unable to switch electric suppliers until the switch hold is lifted.
If you believe that the switch hold has been put on your account unjustly, you should contact your state Public Utility Commission and explain your situation. Maybe your electric company charged you some outrageous fee that wasn’t agreed in your contract and that’s the reason while you are behind on your bill.
Whatever the situation, make sure you gather as much supporting documentation as possible to help you make your case. The PUC will assess all of this information and might ask the electric company to remove the switch hold and work out a payment plan for you.
Can You Change Electric Provider If You Owe Money?
Getting into debt can be a frightening experience, but you certainly aren’t alone. As electricity prices continue to rise, millions of people in the U.S. are struggling to pay their bills. The good news is that you are allowed to switch electric suppliers if you are in debt (as long as there is no switch hold already in place).
If you’ve been in debt for 28 days or less, you can switch provider and your outstanding balance will be added onto your final bill. This option could work if you are able to find a cheaper electricity plan, meaning that you will start paying less money and eventually be able to pay off your debt.
If you are switching suppliers while in debt, you will most likely be required to pay a deposit to your new supplier to start service (unless you will choose a prepaid electric plan).
How to Get a Switch Hold Removed?
So what’s the way out of the situation? The electric company will remove the switch hold when you pay your outstanding balance in full. Be mindful that it will still take up to 72 hours to remove the switch hold after the balance is closed.
If you are a new tenant moving into a house with a switch hold on the meter, the only way to remove the switch hold is by contacting your electric company and asking them to mail you a New Occupant Statement (NOS) to be filled out.
Essentially, you have to prove to the electric company that you have nothing to do with the previous tenant with the switch hold, so in addition to the NOS, prepare one of the following documents:
- Copy of signed lease (the full document)
- A notarized affidavit of landlord
- Utility bill in your name dated within the last two months from a different address
Will Your Service Be Disconnected?
If you still fail to meet your bill payment obligations, your supplier might choose to disconnect your electricity service as a last resort. The Public Utility Commission allows your electric company to disconnect your service for any of the below:
- You still haven’t paid your bill by the date of disconnection
- You haven’t met your commitments on the deferred payment plan
- You haven’t paid the agreed-upon deposit to your electric company
Of course, the PUC also protects the customer, so there are electricity disconnection rules that electric companies have to follow before they issue the disconnection notice:
- Provide you a minimum of 10 days’ notice
- Offer you a deferred payment plan if you are unable to meet your bill obligations
- Provide you with information on organizations that assist customers with bill payments
Do Electric Companies Disconnect on Weekends?
Your electric company will not disconnect your service at the weekend. They will wait to process pending disconnection notices on Monday morning, so one of your options is to make the minimum payment on your bill over the weekend and avoid being disconnected on Monday.
Having the thread of disconnecting your service hanging above your head must be incredibly stressful, so you might consider signing up for a prepaid plan instead. This option allows you to pay for energy before you use it – so that you can control how much it costs you each month.
The electric company also sends you monthly reminders to top up when your balance is running low. Prepaid is a good no deposit, no contracts, and no credit checks option who struggle to make ends meet.
FAQs
Can a utility company deny you service?
You might be forbidden from stitching electric suppliers and signing up for a new plan if there is a switch hold put on your utility account. There are two reasons why a switch hold would be placed – either you have unpaid bills with your retail electric provider (REP) or the utility company determined that meter tampering or theft of electric service has occurred at your address.
The only way to remove a switch hold is by contacting your electric company, paying your outstanding balance, or alternatively lodging a complaint with the Public Utility Commission if the switch hold was placed unjustly.
Can I switch gas and electricity If I owe money?
If you’ve been in debt for 28 days or less (and there are no existing switch holds on your account), you can switch provider and your outstanding balance will be added onto your final bill. This option could work if you are able to find a cheaper electricity plan, meaning that you will start paying less money and eventually be able to pay off your debt.
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