The switch-hold prevents a switch or move-in transaction from occurring. In the event that you are not able to pay your light bill, your electric company will offer you a deferred payment plan to allow you to pay any outstanding balance in installments. Upon entering this agreement the light company can place a switch hold on your meter to prevent you from switching to another light company to avoid the balance due.   Another reason is if your utility company determines that meter tampering has occurred at your location. It is against the law to tamper with the Transmission and Distribution Utility meter to benefit from unbilled electricity service.