Are you paying more than you should for your electricity?

What you should know about Third Party Energy Suppliers 

Sadly, we are all paying more than we should for electricity. Many factors contribute to high energy costs, including how utilities are regulated and how quickly proven technologies are adopted.

But some of our neighbors are paying especially high prices because of predatory practices used by some third-party energy suppliers. Electrify DC recently testified before the DC Council Committee on Transportation and the Environment in support of B26-750, the Retail Energy Market Consumer Protection Amendment Act of 2026.

The scale of the problem is significant. DC’s Department of Energy and Environment published an extensive analysis of third-party energy suppliers, finding that roughly 30,000 residential accounts paid an average of 70% more than Pepco’s regulated Standard Offer Service. DOEE’s analysis also found higher past-due balances and disconnection rates among customers using third-party suppliers, with particularly serious consequences for households already struggling with energy costs.

Other jurisdictions in the region have already taken action to protect consumers. Maryland, for example, passed SB1, Electricity and Gas – Retail Supply – Regulation and Consumer Protection, in 2024 to strengthen oversight of retail energy suppliers.

Electrify DC sees the human impact in our own work. We work in low-income multifamily buildings on tenant engagement and energy improvements. While educating her neighbors about energy efficiency and affordability, Ms. Edwards, one of our tenant leaders, became aware of how third-party providers and their predatory tactics were driving many of them into extreme debt. We connected her with resources developed by the DC Department of Energy and Environment, and she took it upon herself to educate tenants in her building in Fairlawn in Ward 8. How many low-income multifamily buildings don’t have Ms. Edwards?

The problem also extends beyond low-income households. Through our programs for homeowners, we have seen how third-party energy pricing affects residents across income levels. 

We are grateful to the many advocates like Ms. Edwards and the all-star team at AARP who are helping residents understand what they are paying for energy and pushing for stronger consumer protections.

DOEE has developed resources to help residents understand DC’s retail energy market and the risks associated with some third-party suppliers. RAD PAD brings together DOEE research on energy affordability, retail competition, utility assistance, and related issues. Its Third-Party Suppliers analysis specifically examines what DC residents are paying and documents higher average prices, higher arrears, and consumer complaints about practices such as misleading sales tactics and unauthorized enrollment.

We look forward to continuing to work with advocates from across the DC region to improve energy affordability.