Legislation that increases penalties on energy suppliers and marketers for hijacking consumers’ electric bills has been signed into law by Gov. Phil Murphy.
Murphy signed the legislation on April 17.
Sponsored by state Assemblyman Ron Dancer and state Assemblywoman Amy Handlin, the consumer protection bill (A-1683) doubles the penalties for changing a consumer’s power company without approval to $20,000 for the first offense and $50,000 for each subsequent violation, according to a press release from the Assembly Republicans.
“There are overly aggressive operators preying on vulnerable ratepayers,” said Dancer (R-Monmouth, Ocean, Middlesex, Burlington). “Seniors, especially, are often victimized by ‘slamming,’ having their electric or gas suppliers changed and their rates increased without consent. The significant penalties established by this law are strong deterrents to energy scammers.”
Dancer and Handlin’s bill passed the Assembly unanimously in February 2018 and was approved by the Senate with a 35-0 vote in February 2019, according to the press release.
“Any ratepayer is susceptible to ‘slamming,’ but for seniors on a fixed income or families struggling to make ends meet, it is a threat to their financial security,” said Handlin (R-Monmouth). “This bill increases penalties to a level that will make deceitful marketers think twice about ripping off the public.”
In 2016, New Jersey settled energy “slamming” cases against third party suppliers for almost $7 million, according to the press release.
In 2014, the state attorney general and the New Jersey Board of Public Utilities filed complaints against three power suppliers for deceptive business practices, including “slamming.” Those companies settled for almost $8 million in restitution, according to the press release.