NJ Electric Supplier Scams: How to Spot and Avoid Them

A homeowner in Woodbridge answers the door on a Tuesday evening. The person outside is wearing a vest with a logo that looks a lot like PSE&G's, carrying a clipboard, and speaking with calm authority about "updating your account" to lock in lower rates. Forty-eight hours later, without the homeowner ever meaning to switch suppliers, a third-party company appears on the next electric bill at a rate well above what PSE&G's Basic Generation Service (BGS) was charging.

This scenario plays out across New Jersey more often than most residents realize. The state's deregulated electricity market gives consumers a genuine opportunity to shop for supply, but that same openness attracts companies that use pressure tactics, impersonation, and confusing contract terms to land customers who would never have agreed if they fully understood what they were signing.

This guide breaks down exactly how these schemes work, which New Jersey utilities are involved, when shopping actually saves money (and when it does not), and what to do if you think you have already been victimized.

New Jersey deregulated its retail electricity market, which means customers of PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric can choose a competitive third-party supplier for the supply portion of their bill, while the utility still delivers the electricity and handles outages and billing.

If you do nothing, your supply comes from your utility's Basic Generation Service (BGS), a default rate set through a competitive auction overseen by the NJ Board of Public Utilities (NJBPU). BGS rates change periodically and are publicly available.

As of June 2026, the math on switching varies significantly by utility. PSE&G's BGS sits around 19.9 cents per kWh, and the lowest competitive supplier available comes in around 17.6 cents, a meaningful gap of roughly 11 percent on the supply portion. Atlantic City Electric customers face a similar situation, with a BGS near 18.2 cents and the lowest supplier around 16.7 cents, about an 8 percent difference.

But for JCP&L customers, the BGS is approximately 14.6 cents per kWh, and most competitive suppliers are quoting around 16.0 cents or higher. Switching actually costs more. Rockland Electric customers see a nearly identical situation, with BGS near 18.8 cents and very few supplier offers available, none of which beat the default rate.

The lesson: whether switching saves you money depends entirely on your utility and the specific offer. Visit ElectricRates.org's New Jersey page for current supplier rates before making any decision.

Slamming is the unauthorized switching of a customer's electricity supplier without clear, informed consent. It is illegal under New Jersey law and a violation of NJBPU regulations, but it still happens.

Slamming typically occurs in one of three ways. A door-to-door agent obtains enough account information (often just your account number, which appears on your bill) to initiate a switch without your real agreement. A phone solicitor records a portion of a conversation and submits it as a verbal authorization. Or a digital form is presented in a misleading way so the customer thinks they are confirming identity or a rate review, not authorizing a supplier change.

The practical result is that you receive a bill with a new supplier's name and, almost always, a higher per-kWh rate than your BGS. Because utility billing cycles run four to six weeks, weeks of charges at the unauthorized rate can accumulate before most customers notice.

Slamming complaints are filed with the NJBPU, which has the authority to fine suppliers and revoke licenses. If you believe you were slammed, you have the right to be returned to BGS and, in many cases, to receive a billing adjustment for the overcharge.

Not every third-party supplier is dishonest, and legitimate companies do operate in New Jersey's competitive market. The problem is that deceptive tactics are specifically designed to be hard to distinguish from legitimate outreach in the moment. Here are the patterns that come up most often in NJBPU complaints.

Utility impersonation. Agents wear clothing or carry materials that visually suggest they represent PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric. They may say they are "working with" the utility or are there to "update" your account. Your utility will never send someone to your door to switch your electricity supplier.

The guaranteed savings pitch. A claim of guaranteed savings is almost always a red flag. Supply rates change, and a fixed-rate contract can protect against increases but cannot guarantee savings versus a BGS rate that may fall. Any agent who says you will "definitely" save money does not know that and may be lying.

Urgency and artificial deadlines. Phrases like "this offer expires tonight" or "your rate is going up and we need to lock this in now" are designed to prevent you from reading the contract or comparing rates independently. Legitimate offers do not evaporate in hours.

Asking to see your electric bill. Agents sometimes ask to "verify" your account by viewing your bill. Your account number is on that bill. Once they have it, it can be used to initiate a switch.

Variable-rate bait-and-switch. A supplier offers an attractive introductory rate, often fixed for one to three months, then switches the customer to a variable rate that can rise significantly. The variable rate terms are buried in the contract. Always ask whether a rate is fixed for the full contract term and what happens after.

New Jersey law gives electricity customers a set of specific protections when dealing with third-party suppliers. Understanding these rights before a salesperson shows up is the best preparation.

The right to a three-day rescission period. After agreeing to switch suppliers, customers have three days to cancel without penalty. If an agent tells you there is no cooling-off period, that is incorrect.

The right to a written contract. Any supplier switch must be accompanied by a written contract, delivered to you before or at the time of enrollment, that clearly states the rate, whether it is fixed or variable, the contract length, and all early termination fees.

The right to return to BGS at any time. You can switch back to your utility's Basic Generation Service. Depending on your contract, there may be an early termination fee, which is why reading the contract before signing matters so much.

The right to file a complaint. Complaints against suppliers can be filed directly with the NJBPU. The Board can investigate, mediate, and penalize suppliers who violate regulations. You can also file a complaint through your utility's customer service channel.

For low-income households, separate assistance programs including the Universal Service Fund (USF) and the federal LIHEAP program may help offset electricity costs regardless of which supplier you are on. The NJBPU and NJ Department of Community Affairs can direct you to current eligibility requirements, which change periodically.

If you want to shop for a better supply rate, there is a legitimate way to do it that puts you in control rather than a door-to-door agent.

Start by knowing your current BGS rate. It appears on your electric bill or on your utility's website. Then compare it against what competitive suppliers are currently offering. ElectricRates.org's New Jersey comparison page pulls current supplier offers so you can see the full picture.

Before agreeing to any switch, confirm that the supplier is licensed in New Jersey. The NJBPU maintains a list of licensed electric suppliers, and you can verify any company's standing before providing any account information.

Ask these questions before signing anything: Is the rate fixed or variable? If fixed, for how many months? What is the early termination fee? What happens to the rate at the end of the contract term? Get the answers in writing, not just from a verbal pitch.

Never give your account number to an unsolicited caller or door-to-door visitor. If you want to switch, initiate the process yourself through a supplier's official website or by calling the number listed on a verified, licensed supplier's page.

Check your electric bill carefully. The supplier name appears on the supply section of the bill, separate from your utility's delivery charges. If you see a name you do not recognize and did not authorize, act quickly.

Call your utility first. PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric all have customer service lines and can confirm when a switch was initiated and, in slamming cases, can help facilitate your return to BGS. Ask specifically about a billing adjustment for any charges above the BGS rate during the unauthorized period.

File a complaint with the NJBPU. The Board's Division of Customer Assistance handles supplier complaints and can intervene in slamming cases. Document everything: dates, names if you have them, what you were told, and copies of any bills showing the unauthorized rate.

If you signed a contract under pressure or confusion, review the three-day rescission window and any early termination fee terms. Even if the rescission period has passed, a complaint with the NJBPU can sometimes result in fee waivers when deceptive practices were involved.

New Jersey's competitive electricity market is real, and for customers of certain utilities, particularly PSE&G and Atlantic City Electric, there are legitimate savings available right now through reputable suppliers. The opportunity is not a scam in itself.

The problem is a subset of bad actors who use impersonation, pressure, and deceptive contract terms to capture customers who would not choose to switch if they had complete information. The best defense is knowing your current BGS rate, understanding that switching only makes sense when a supplier's rate is clearly and verifiably lower, and never authorizing a switch during an unsolicited visit or call.

For live rate comparisons across New Jersey's utilities and a current list of licensed suppliers, visit ElectricRates.org. And if something does not feel right during a sales interaction, trust that instinct. You can always look up the information independently and make the decision on your own terms.