Want to switch electricity companies in Texas? If you live in Texas, it’s easy to change your electricity provider. Most Texas residents have the ability to choose their electricity provider, thanks to deregulation. (Check this list of deregulated vs. regulated city in Texas to see if you can switch electricity suppliers.) This quick read gives you the basics of switching electricity providers.
Key Takeaways
- Residents and business owners in Texas can choose their electricity provider.
- Switching electricity providers involves: looking at your current bill, evaluating your electricity usage, and choosing an electricity plan that gives you the lowest price for your electricity.
- Comparison shopping sites like ElectricityPlans.com help you evaluate electricity rates and plans.
How Do You Switch Electricity Providers in Texas?
The steps to switch electricity providers in Texas are simple: compare plans, choose the best rate, and sign up. Here are the full steps to switch power companies:
- Look at your current bill. Make a note of your average monthly usage, your current rate and your contract expiration date.
- Consider your renewal offer from your current company. Your provider will send you a renewal offer approximately 45-60 days before your expiration date. This rate may be more or less than what they offer new customers.
- Compare plans. Use a comparison shopping site like ElectricityPlans.com to compare electricity plans. Shop by your zip code and your average usage to see your price per kWh and estimated bill.
- Select a new plan and provider. Find the best electricity plan for your home, whether that’s special features like green energy or free electricity, or just the cheapest rate in Texas.
- Enroll with the new provider. Sign up online or over the phone. Pick a start date for your new plan that either matches your expiration date or is within 15 days of that date to avoid a possible early termination fee.
There’s no need to “break up with” your current provider. You don’t even need to contact them. They’ll receive a notice automatically. You’ll get a welcome email or letter from your new provider, then your first bill.
Once you’re done switching your electricity company? Sign up for our free electricity contract expiration reminder service. We’ll notify you when it’s time to shop again for the best deals.
What are Factors to Consider When You Switch Electricity Companies?
Here are five factors to consider when you switch electric providers.
- Contract expiration date. When you enroll, you’ll switch immediately to the new company. Instead, choose a self-selected switch date matching your expiration date. Most providers put that date on your bill. If not, call to find out.
- Usage patterns. Some plans have different rates, fees or bill credits based on usage. Know your usage pattern, and be wary of any deal that looks too good to be true. Use available tools like ElectricityPlans.com, where our energy experts highlight all the fine print. If you don’t know your usage, always select a basic fixed rate electricity plan.
- Timing the market. Electricity prices are seasonal, and the best time to shop for electricity in Texas is spring and fall. Consider a short term electricity plan to shift your expiration date. You may be able to take advantage of lower rates.
- Partial billing. Don’t be surprised if you get 2 bills the first month! You’ll switch on the date you select, not on your meter read date. But the next meter reading will still be on the scheduled date. You’re likely to get a partial-month bill from your old provider plus a partial-month bill from your new provider.
- Deposit payment. If you have a deposit on file with your current provider, you’ll get that back with interest within 60 days. Your old electricity provider will first apply the funds to any unpaid balance, then refund the rest. If you’ve paid on time, you can get a letter of credit to avoid paying a deposit with your new company.
Read our step-by-step guide to Texas electricity shopping for more tips!
Should You Switch Providers Every Time Your Contract Expires?
Yes, you should switch providers every time your electricity contract expires, or at least shop around to check prices. It’s easy to fall into the habit of renewing with your current provider when your contract expires. But a few minutes of comparing rates could result in big savings on your bill. Many retail electricity providers reserve their best rates for new customers.
That’s just not cool with us. Why should loyal customers pay more? And that’s why we recommend that you shop your rate and switch electricity providers when you find a better deal. Even if you decide to stay with your current electricity provider, you’ll have the comfort of knowing you comparison shopped for your rate.
Sign up for contract expiration date reminders so you never miss a chance to shop for a new provider.
Electricity Contract Expiration Reminders
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FAQs – Switch Electricity Providers in Texas
You can switch by signing up for a new provider and electricity plan over the phone or online. Your new provider will handle the switch for you, with no interruption of service and no need to contact your current provider. (Yes, you can break up and ghost them.)
There’s no fee to switch electricity providers, but you may have an early termination fee (ETF) if you leave your contract early. You can switch with no penalty if you are within 14 days of your contract expiration date.
The best time is typically before your current contract expires or during the shoulder season (spring/fall) when rates tend to be lower.
Your switch to a new provider is immediate (less than 1 day) unless you request a future start date. All switch transactions are handled within ERCOT systems (Electricity Reliability Council of Texas, the local electric grid operator) and no one needs to come to your home to switch your provider.
Yes, but check for early termination fees before you switch. Some providers, like Rhythm Energy, will reimburse your early termination fee with another provider up to $150. If prices have gone down since you last shopped for electricity and you’re stuck in an electricity contract, you have options!
You have a 3-day “right of rescission” after enrolling with an electricity provider and can cancel without penalty during that period. Some electricity providers in Texas (including Gexa Energy, 4Change Energy, TXU Energy, Rhythm Energy, and OhmConnect Energy) offer a satisfaction guarantee that lets you change your plan or switch away in the first 30-60 days with no termination fee.
Additional Resources – Switch Electricity in Texas
Want to learn more about the switching electricity providers? These resources give you a complete picture on how to shop for a new electricity company.
