Benson, Houghtaling & Moriarty Bill to Increase Penalties for Slamming Practices Now Law

(TRENTON) – Legislation sponsored by Assembly Democrats Daniel Benson, Eric Houghtaling, and Paul Moriarty to strengthen state law against energy “slamming” practices was signed into law today by the Governor.

Energy “slamming” is a practice that involves changing consumers’ electric power or gas supplier without their knowledge or consent.

“Changing consumers’ electric power or gas supplier without their knowledge or consent is unacceptable,” said Benson (D- Mercer/Middlesex).  “Residents should always be kept informed when any change on their energy bill takes place, especially if it results in a higher monthly payment. Raising penalties is a deterrent for these types of unfair, unscrupulous practices.”

“In the past year, certain third-party energy suppliers took advantage of an unusually cold winter to change consumers’ energy suppliers without their knowledge or consent,” said Houghtaling (D-Monmouth). “Energy slamming is anti-consumerism at its best and it impacts families in a way that hurts them the most, their budgets. This legislation takes a much needed step to protect residents from this unfair business practice.”

“A number of consumers complained of these unauthorized changes which resulted in skyrocketing energy utility bills,” said Moriarty (D-Camden/Gloucester). “Doubling civil penalties for slamming practices will help to discourage third-party energy suppliers from taking advantage of consumers in the future.”

The new law, formerly bill (A-1683), would increase civil penalties for energy “slamming” practiced from $10,000 for the first offense, and not more than $25,000 for the second and each subsequent offense, to $20,000 for the first offense, and not more than $50,000 for the second and each subsequent offense.

The Assembly unanimously approved the bill in February.