An energy salesperson came to my door. Will they actually save me money?

Christopher Reynolds was putting on his shoes inside his Conshohocken home, getting ready to go out to the Norristown amateur theater company where he spends many weekday evenings.

It was then that he noticed a man looking through his front windows.

When Reynolds walked outside, the man tried to make conversation, something about an Eagles poster he had seen hanging on the wall of Reynolds’ home, then asked for personal information, including how much Reynolds was paying for utilities. The man told Reynolds he could lower his electric bill with a third-party supplier, and wouldn’t take no for an answer.

“It just felt off that I caught this guy looking in my windows,” said Reynolds, a 26-year-old financial adviser. “If I wasn’t home, what could have happened?”

He reported the encounter, and then typed out a warning on a local Facebook group. He said he didn’t want any of his neighbors, especially those who are older, to fall for the salesperson’s aggressive tactics and switch to a company that, according to Reynolds’ past research, didn’t seem like it’d save customers money in the long run.

» READ MORE: How to spot door-to-door energy scams, which increase in the summer

Reynolds is one of many Philadelphia-area residents who recently have gotten a knock on their door from a salesperson who promised lower energy bills. As the weather warms, you may get a door-to-door visitor this season.

Here’s what to know if an energy salesperson shows up at your home:

Nearly half of U.S. states, including Pennsylvania and New Jersey, have deregulated electric and gas markets, meaning consumers can choose from a wide array of retail energy suppliers Regardless of whether customers shop, or opt for default service, the local utility delivers the energy and sends the bills.

Deregulation gives customers a choice, creating competition in the market and, in theory, encouraging companies to provide lower prices, better services, and more climate-friendly options.

You can shop around for alternative suppliers online at papowerswitch.com if you live in Pennsylvania or at nj.gov/bpu/commercial/shopping.html#nbr1 if you live in New Jersey.

Yes, as long as they are following state regulations.

Until Sept. 30, door-to-door salespeople can only knock between 9 a.m. and 8 p.m. in Pennsylvania, and until 9 p.m. in New Jersey, unless a local jurisdiction has stricter rules that would supersede the state.

There is little consensus among experts about whether third-party energy suppliers can save consumers money — and growing evidence to the contrary.

Last year, the New York Times found that residents of fully deregulated states paid about $40 a month more on average for electricity than those elsewhere, and have paid higher prices for more than two decades. From 2010 to 2019, U.S. consumers on contracts with third-party suppliers paid $19.2 billion more than they would have with the local utility, according to a 2021 Wall Street Journal analysis of federal data.

By and large, “residential customers just do not save,” said Robert Ballenger, an attorney in the energy unit at Community Legal Services (CLS) of Philadelphia. “The belief that you’re going to save, planted upon you by someone who is marketing that product, is really not supported by the evidence.”

While an initial rate quote may sound promising, the fine print can be more convoluted.

“We have introduced in the retail space a product that people don’t understand,” said Elizabeth Marx, executive director of the Pennsylvania Utility Law Project. “The contracts can be really detailed and difficult to decipher.”

She acknowledged that there are consumers who have saved with a third-party supplier. Those are typically the uber-attentive customers who are constantly on top of their bills, aware of when their contract ends, and willing to shop around and switch providers often.

Marx and Ballenger, both attorneys, say low-income clients they work with often say they were particularly drawn to the allure of savings.

“What is happening is on a percentage basis, residential customers as a whole seem to be increasingly aware of the risks to them,” he said. “Unfortunately that same trend, if it exists, is not nearly as prevalent when it comes to low-income customers in the Philadelphia region. We are seeing those customers having more erratic experiences, likely because they are pursuing alternative service.”

It’s always smart to ask for ID, which salespeople are required by law to carry, and to be wary of pressure tactics. Remember you don’t have to buy anything on the spot. You can sleep on the decision and do your own independent research on the online marketplace.

You also don’t have to answer the door.

Some customers report having been “slammed,” or having had their energy supplier switched without their consent after a conversation with a salesperson.

An East Germantown woman last year shared her story of how a brief conversation with a door-to-door salesperson, and a verbal “yes” when asked if she understood what was being said to her, resulted in her bills skyrocketing.

» READ MORE: A Philly woman answered the door for energy salespeople. That decision cost her.

In Southwest Philadelphia, Lula Wilson, 64, said she had a similar experience two years ago, around this time of year, when someone came to her door saying: “Do you know that you can save hundreds of dollars on your electric and gas?”

She didn’t sign anything, she said. But before she knew it, her energy supplier had been switched and her bills increased.

“Don’t talk to people. Don’t talk to strangers,” Wilson said this week. “When they ask you questions about your bills, just don’t say nothing.”