You’re never stuck in a contract with your electricity provider. There are always options available. You can negotiate a lower rate, switch to a different provider and pay the early termination fee, use the provider’s satisfaction guarantee (if available) or use your right of rescission if you just made the switch.
The bottom line is that you can still shop for electricity rates and plans even if you are in a long-term contract.
Scenario #1: “I Found a Better Electricity Rate But I’m in a Contract”
Electricity rates fluctuate over time. And while spring and fall are typically the best time to shop for electricity, rates can sometimes surprise us. For example, in summer 2026, rates dropped an amazing 10% from June to August!
If you’re checking competitive rates mid-contract, you aren’t alone. ElectricityPlans’ 2026 Electricity Consumer Confidence Survey found that nearly 30% of consumers shop at least once a year to see if they could save.
Should I pay an Early Termination Fee and Get Out of My Contract?
So if you are in this scenario, the big question is how much can I save by switching electricity providers? You’ll need to spend a few minutes doing some basic rate comparisons. Our BillSmart™ Tools make it easier to run this calculation.
Time needed: 5 minutes
How to Calculate How Much You Can Save by Switching Electricity Providers
- From your current bill, find your average price per kWh.
Your average price per kWh includes your energy rate per kWh, any bill credits or base charges, and all delivery costs. That’s the best apples-to-apples comparison point.
- From your current bill, find your usage.
Your usage is the total amount of electricity you’re being billed for.
- Visit ElectricityPlans.com and enter your usage.
Enter your zip code, then the kWh usage from your current bill.
- Compare what you paid vs. what you could have paid.
ElectricityPlans’ BillSmart Calculator shows your effective rate and estimated bill for each plan, based on your actual usage level.
- Calculate your savings opportunity.
Calculate how much you could have saved by comparing your bill total vs. the estimated bills for each provider. To find your maximum savings opportunity, take your current bill and subtract the lowest estimated bill.
- Multiply by 12.
For a quick annual savings estimate, multiply that number by 12.
Running the Numbers Example: Should I Switch Providers Mid-Contract?
Here’s an example of one customer who contacted us and wanted advice on their electricity rate. For this customer, the decision is clear. He’ll pay the $250 early termination fee and switch, racking up huge savings.
| Switch & Save Example | |
|---|---|
| Location | Fort Worth, TX |
| Date Performed | July 30, 2026 |
| Average Price per kWh | 18.3¢/kWh @ 2,748 kWh |
| Lowest Available Rate | 12.4¢/kWh @2,748 kWh |
| Customer Overpaying by | 5.9¢/kWh (18.3¢ - 12.4¢ ) |
| Savings Opportunity on this bill | $162/month ($.059 X 2,748 kWh) |
| Estimated Annual Savings | $1,945 ($162 X 12) |
| Early Termination Fee | -$250 |
| Total Switch & Save | $1,695 |
Pro Tip: Once you’ve evaluated your current rate, and before you switch, call your current provider. Tell them you’d like to stay, but the numbers are forcing you to make a switch. See if they can match that price to keep you. If not?
Average Electricity Prices in Texas
- Average electricity rate in AEP Texas Central: 14.81¢ per kWh
- Average electricity rate in AEP Texas North: 16.14¢ per kWh
- Average electricity rate in CenterPoint Energy: 14.14¢ per kWh
- Average electricity rate in Lubbock Power & Light: 15.02¢ per kWh
- Average electricity rate in Oncor: 14.99¢ per kWh
- Average electricity rate in TNMP: 16.43¢ per kWh
Scenario #2: “I Found a Better Rate the Next Day”
Most deregulated states give you three business days to cancel your contract without penalty. For example, in Texas you have three business days to change your mind after you sign up with a provider, called your right of rescission.
If you find a better rate a day or two later, it’s not a problem. The number of days that you have to change your mind is outlined in the terms of service included with your new electricity contract.
You can also select an electricity provider with a satisfaction guarantee. If you sign up for one of their plans and change your mind within the first 30-90 days, you can change to any one of their plans with no ETF. Some of these providers will even let you switch away if you don’t like their rates. To qualify, you must call your current provider and give them a chance to put you on a new plan.
Scenario #3: “I’m Moving But I’m in a Contract”
If you are moving, you will not have to pay an early termination fee for your electricity contract in Texas. Your provider may require proof of your change of address in order to waive the cancellation fee. Usually, just providing a forwarding address for your final bill may be enough. If you are moving within the provider’s service area, you can transfer your existing contract to your new address but you are not required to.
TIP: If you are moving within the same utility area, check the current rates in your area. If your electricity contract is cheaper than current offers, transfer the contract agreement to your new home. If not? Cancel it with no penalty and sign up for a cheaper rate.
Electricity Shopping Reminder Service
One of the biggest mistakes we see in electricity shopping isn’t picking the wrong plan. It’s forgetting to shop when your electricity contract expires. If that happens, you’ll pay a variable electricity rate that can be 30-50% higher than available fixed rates.
Sign up for our electricity plan expiration reminder. Just let us know your contract expiration date. We’ll send you reminders to shop starting 60 days in advance of your electricity plan expiration.
Conclusion: You’re Never Stuck in a Bad Contract With Your Electricity Provider
It’s not a good feeling to be stuck in an unfavorable contract with your electricity provider. Know that you have options and you don’t have to wait until the end of your contract term to make a change. After evaluating your specific contract, you may come to the conclusion that paying an early termination fee makes good economic sense because it saves you money in the long run. ElectricityPlans.com helps you compare electricity rates and find the best plan for you.
Shopping for a new provider? Read our step-by-step guide to shopping for Texas electricity.
Frequently Asked Questions
The early termination fee for your Texas electricity contract varies by provider and contract term. ETFs range from $150 to $350 depending on the contract term. Some providers charge a set amount per month remaining in your contract.
Your early termination fee is listed on the Electricity Facts Label and is part of your contract. Your provider likely sent this to you via email when you enrolled, or you can find it in your online account. Knowing your ETF is important when deciding if you should cancel your electricity contract to get a better rate.
There are companies that will cover your early termination fee when you switch. For example, Base, Rhythm Energy and Constellation will reimburse up to $150 of your early termination fee.
