Experiencing a switch hold on your electric account can be as inconvenient and frustrating as a flat tire or being locked out of your house. While it does require some effort to resolve, being well-informed can streamline the process, allowing you to resume exploring advantageous electric plans swiftly. Gatby is here to help!

What Exactly is a Switch Hold?

A switch hold acts like a virtual lock on your meter at a specific residential address. It's implemented to prevent the account holder from switching electric companies before clearing overdue bills. This is particularly crucial if you're in the middle of moving homes, as switch holds can take up to 72 hours to be removed.

Reasons for a Switch Hold

There are two primary reasons why your electricity company might place a switch hold on your account:

1. Meter Tampering or Electricity Theft: Your local transmission and distribution service provider (TDSP) may determine that there has been interference with the meter, leading to inaccurate electricity usage records.

2. Unpaid Bills: If you have overdue payments with your retail electric provider (REP) and have agreed to a deferred payment plan, a switch hold can be placed on your meter until the balance is paid off.

Dealing with a Switch Hold at a New Residence

It's possible to inherit a switch hold from a previous tenant if they failed to properly close or transfer their account. In such cases, you might find yourself unable to switch electric suppliers until the switch hold is lifted. If you believe the switch hold is unjust, contact your state Public Utility Commission with as much supporting documentation as possible. They can assess your situation and may request the electric company to remove the switch hold and negotiate a payment plan.

Changing Providers While in Debt

Facing debt can be daunting, but it's not uncommon given rising electricity prices. You're allowed to switch electric suppliers even in debt, provided there's no existing switch hold. If your debt is 28 days old or less, you can switch providers, and your outstanding balance will be added to your final bill. This could be beneficial if you find a cheaper plan, thereby reducing your expenses and helping clear your debt. However, switching while in debt might require you to pay a deposit to the new supplier, unless you opt for a prepaid electric plan.

Removing a Switch Hold

To remove a switch hold, you'll need to settle your outstanding balance in full. Note that it can still take up to 72 hours for the switch hold to be lifted post-payment. For new tenants at a property with a switch hold, contact your electric company for a New Occupant Statement (NOS) and provide proof, such as a signed lease or a notarized affidavit from the landlord, to dissociate yourself from the previous tenant’s debts.

Risk of Service Disconnection

Failing to clear your bills could lead to service disconnection. Your supplier may disconnect your service if you don't pay your bill by the disconnection date, fail to adhere to a deferred payment plan, or don’t pay the required deposit. However, there are protections in place, such as a minimum of 10 days' notice and the offering of a deferred payment plan.

Disconnections and Prepaid Plans

Electric companies typically do not disconnect services over the weekend, giving you a window to make payments and avoid disconnection on Monday. If you're struggling financially, consider a prepaid plan. It allows you to pay for energy before usage, helping you manage your monthly expenses more effectively.

FAQs on Switch Holds and Service Options

Can a Utility Company Deny You Service?

You might be restricted from switching electric suppliers if there's a switch hold due to unpaid bills or suspected meter tampering. Removal of a switch hold requires settling the outstanding balance or contacting the Public Utility Commission if the hold is unjust.

Can I Switch Gas and Electricity If I Owe Money?

Yes, if your debt is less than 28 days old and there are no switch holds, you can switch providers. The outstanding balance will be added to your final bill, potentially easing your financial burden if you find a more affordable plan.

Let Gatby help free you from a switch hold and up and running with a new electricity plan today!