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Home > BKV Energy Blog > All Posts > Electricity Fraud in Texas: Scams and Theft Hurt Customers and Providers
4 minute read • Last update May 2026

Retail electricity fraud is an old, but rapidly growing and evolving problem in Texas that hurts both residential customers and energy providers.
In 2024, NBC DFW reported a story about a man who lived in Phoenix, Arizona that was getting phone calls from a Texas electricity company regarding over $500 in unpaid, overdue bills from a home in North Texas.
Someone stole this man’s identity and used it to sign up for an electricity contract in Texas.
In 2021, KPRC Houston investigated a similar story in which one man’s identity was used to sign up for plans at seven different addresses with seven different energy providers. None of the people who lived at these addresses paid their bills and the man began to receive collection notices for over $4,400 in unpaid bills.
The stories above just skim the surface of the severity and abundance of electricity fraud in Texas.
An article from State Impact NPR estimates that in 2012, Texas consumers were robbed of $77 million through utility scams.
In 2025, a Houston man was sentenced to 54 months in prison following his involvement in a scheme that stole over $4 million from energy providers.
It is difficult to quantify the total financial impact to Texas energy consumers and providers, but it’s clear the actions of fraudsters hurt individual Texans in their wallets and credit scores, and that theft leads to millions in bad debt for providers.
Texas is uniquely vulnerable to fraud in the residential electricity industry for several reasons:
Let’s dig into both of these factors:
The Texas electricity market is deregulated, meaning that residents of the state are able to choose who supplies or provides power to their home.
This “open” market allows many providers to join the space and compete for customers. As of May 2026, there are over 140 REPs in the Public Utility Commission’s (PUCT) directory list.
It can be argued that competition is good for the consumer, but this fragmented energy market with high competition also means there is not much cooperation or collaboration between providers.
Texas suppliers do not generally share information with their competitors the names, email addresses, phone numbers, and other consumer details that are associated with fraudulent activity.
This means it can be rather easy for one person to steal power from several electricity providers in a row. With so many options on the market, the system practically encourages thieves to hop from provider to provider, without paying their bills, leaving a trail of bad debt in their wake.
Non-POR stands for “non-purchase of receiveables.” In the Texas energy market, this means that providers are responsible for collecting payments directly from their customers.
Compare Texas to POR energy markets in the northeast United States, where regulated utilities are required to pay suppliers on behalf of the customer.
Thanks to the non-POR setup of the Texas market, REPs are very exposed to theft and bad debt.
In Texas, there are several major types of energy fraud, including identity fraud, consumer-facing scams, meter tampering, and solar power fraud.
Let’s dive into each one:
Identity-based fraud occurs when bad actors utilize stolen or synthetic identities to enroll in electricity plans.
Names, birthdates, SSNs, phone numbers, and address history can be bought on the dark web or collected through business fronts, then used to open real accounts with real providers.
In the case of the Houston man who landed in prison for 54 months, he and his team of scam artists created a fake REP, charged customers $80 per month, and signed their addresses up using stolen and fake information.
Consumer-facing scams are those where the bad actors approach their victims online or in-person. They may threaten disconnection door-to-door while demanding payment, recommend fake plans and providers, or impersonate REPs over the phone to steal valuable consumer information.
Meter tampering is an old-school version of energy fraud that works by physically messing with meters on homes. For example, a bad actor may steal electricity from a neighbor or tamper with a meter to cause it to under-report kilowatt-hour consumption to the utility company.
Solar panel companies in Texas are under investigation for violations of the Deceptive Trade Practices-Consumer Protection Act. Actions that are under the microscrope include misrepresenting potential energy bill savings and solar panel efficiency.
Common warning signs that someone is targeting you for energy fraud:
The best ways Texans can protect themselves from electricity fraud:
If you find yourself as a victim of fraud, here are some steps you can take to fight back:
Texas REPs are fighting back against retail energy fraud by deploying several layers of identity verification and fraud prevention tools.
Soft credit checks, ID verification and fraud prevention software, and machine learning tools can flag suspicious behavior and activity before the bad actors successfully create an account.
At BKV Energy, we may request customers to provide additional details after an enrollment is submitted. This is to protect our own business, but also to protect the financial needs of our fellow Texans. We work hard to prevent bad actors from creating accounts with stolen information in order keep our families, neighbors, and colleagues safe.
Graham Lumley, Growth Product Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 10 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.

Is ChooseTexasPower.com a legitimate energy shopping website? ChooseTexasPower.com (also ChooseTexasPower.org) is a legitimate Texas energy shopping website recognized by the

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