Elderly Texans are disproportionately harmed by switch-holds, according to a former state lawmaker.
Switch-holds — that controversial practice that allows electric companies to block Texans under certain conditions from getting service to light their homes, run their air conditioners or power their refrigerators — is in the news again.
The Houston Chronicle reports that three companies owned by power giant NRG Energy will pay a combined $900,000 to settle allegations relating to the controversial practice.
Although permitted in Texas, switch-holds have been criticized by consumer groups who say they put state government in the heavy-handed position of becoming a bill enforcer for private companies. Under the Texas switch-hold rule, electric companies can direct the state’s electric grid operator to flag delinquent accounts that have met certain criteria, thereby preventing those customers from switching to new providers.
But staff at the Texas Public Utility Commission alleges that Reliant Energy, Green Mountain Energy and U.S. Retailers — all owned by NRG Energy — went further than even the switch-hold rules permit. According to staff, the companies imposed arbitrary waiting periods before allowing customers who had paid their bills to switch providers.
As reported by Ryan Maye Handy of the Houston Chronicle, the companies argued their actions were not in violation in the rules.
Ryan Handy, Houston Chronicle
“We stand for and go above and beyond what is required to help customers with bill pay assistance,” said NRG’s Dave Knox, as reported by Handy. “We also stand for complying with all rules and regulations that govern our business. We are pleased that the settlement agreement has been approved and this issue resolved.”
Under a regulatory settlement finalized last week, the companies also will offer a collective $1.3 million in bill payment assistance for low-income customers through 2017, according to the Chronicle. The newspaper reported that the agency probe stems from complaints filed in 2013.
Former state Rep. Sylvester Turner, now mayor of Houston, has said the state’s switch-hold policy disproportionately harms the elderly and poor. He also has said that it can result in longer service disconnections than would otherwise be the case without the policy.
What is the Texas Coalition for Affordable Power?
R.A. Dyer is a policy analyst for TCAP, a coalition of cities and other political subdivisions that purchase electricity in the deregulated market for their own governmental use. Because high energy costs can impact municipal budgets and the ability to fund essential services, TCAP, as part of its mission, actively promotes affordable energy policies. High energy prices also place a burden on local businesses and home consumers.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.
I’m all for the switch hold so long as there is no penalty charge for ending the service with the provider that placed the hold. To charge a fee for ending device & killing a persons credit is a punishment enough. But to make someone go without the basic nessities due to non pymt to a provider is cruel. Maybe the providers reps are horrible & your bills come in incorrect often and never corrected. What if ill be damned if that company gets one more dollar from me. Although I am set in my ways isn’t my right to swich knowing i will have to pay eventually due to their ability to put it on my credit along with a cancellation fee more than the bill usually. it is already hard enough to make it these days with only one income and children God forbid the smallest thing set you back to where you have to just swallow your pride let it be put on your credit and get to when you’re financially able they shouldn’t be able to do both one of the other
I can’t afford to pay my lights I have a switch hold need help please help me and my grandbabies
TXU is just as bad they tell you your bill will or should run one amount then when you get your bill it’s no where near what they said. It’s nearly 400.00 MORE then when you can’t pay it they tell you ” too bad pay it be cut off”, or “pay this amount otherwise we won’t work with you ” they don’t care that they lied to you, they don’t care that you can’t pay their extremely inflated bills , they don’t care that they turn your power off and you are sick. All the care about is money and how much or fast they can make your pay. They are nothing but liars.
Im a new customer and they are refusing to let me out electricity in my name be ause a previous tenant has a past due balance and had a switch hold. A man that I don’t even know because I just moved here from Illinois. So tonight me and my autistic babies are in the dark. No lights. Our food spoiling in the refrigerator. This is criminal.