You found a better rate. You’re ready to switch. But what about that early termination fee? No worries, here’s a list of Texas electricity companies that will cover your early termination fee.
What Electricity Companies Will Reimburse Early Termination Fees When I Switch Providers?
Shopping around? These companies will cover the cost of your early termination fee (ETF) when you switch. Of course there are some hoops to jump through, but $150 reimbursement is nothing to ignore when you’re shopping rates.
| Company Name | What They'll Cover | The Fine Print |
|---|---|---|
| Base | Up to $150 | Pay the early termination fee to your previous provider; email a copy of the energy bill to support@basepowercompany.com within 30 days of payment. Credit applied on your next energy bill. |
| Constellation | Up to $150 | Complete the form at constellation.com/myetf and include copies of first Constellation bill and copy of final bill showing a cancellation fee. Reimbursed via an email gift card from Virtual Incentives. |
| Rhythm Energy | Up to $150 | Contact customer service and submit a copy of your final bill showing the early termination fee charge. Once verified, Rhythm will issue a bill credit. |
| Just Energy/Amigo Energy/Tara Energy | Up to $150 | Just Energy's brands will reimburse up to $150 of an early termination fee when you switch. |
What is an Early Termination Fee?
When you sign up for an electricity provider in Texas, you’re agreeing to a certain rate per kWh for a certain number of months, called your contract term. If you cancel your service or switch away before your contract end date, your provider will charge you an early termination fee.
Why Do Texas Electricity Providers Charge an Early Termination Fee?
Electricity providers purchase electricity supply on your behalf when you sign up. That ensures they can sell you electricity at the price that they promised you. If you cancel before the end of your contact, they’re still on the hook for the energy they purchased on your behalf. The early termination fee keeps them from losing money on the deal. But the real reason why electricity providers charge an early termination fee is to keep you from switching away.
Our 2026 Texas Electricity Consumer Confidence Survey showed that the early termination fee keeps 35% of consumer from shopping and switching even if they could get a better deal. If you are considering switching before your contract is over, follow these steps to calculate how much you can save by switching, and simply factor in the ETF you will have to pay.
How Much are Early Termination Fees for Texas Electricity?
Early termination fees for Texas electricity contracts vary by the length of the contract and the provider. For a 12-month contract, $150 is a typical early termination fee. For a 24-month contract, $175-$250 is a typical early termination fee. Some providers charge based on the months remaining in your term, for example, $10 per month remaining on your contract.
You’ll find the early termination fee listed in the Electricity Facts Label for the plan you choose. And on ElectricityPlans.com you’ll find that in the Plan Details for every plan.
Moving? Your ETF is waived. That’s the law. Your early termination fee for your electricity contract is waived when you move. That’s the consumer protection law in Texas. Just contact your provider to schedule the last day of service, and provide a forwarding address for your final bill as proof of your move.
Additional Reading
- Electricity Companies With a Satisfaction Guarantee — These companies will let you switch to a different plan (or even switch away) with no early termination fee in the first 30-90 days.
- Moving Before Electricity Plan Expires. This article helps you decide if you should transfer your electricity plan to your new home, or shop for a new one. Moving gives you an automatic out for your electricity contract. Just provide a forwarding address for your final bill as proof of your move.
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