Want to switch electricity companies in Texas? If you live in Texas, it’s easy to change your electricity provider. Here’s how to switch and why you should shop for a provider every time your contract expires.
How to Switch Electricity Providers in Texas
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.)
Deregulation split the utility company from the electricity provider. You’ll continue to get electricity delivered by your local utility company. And they’ll maintain the local poles and wires and handle any power emergencies. But you’ll choose your electricity provider.
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.
Factors to Consider when You Switch Electricity Companies
Here are some 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.
Why You Should Switch Electricity Providers Every Time
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.
We find that some retail electricity providers reserve their best rates for new customers.
And, based on our experience in the industry, they make the most money on customers that either renew their contract or let their plan expire and pay a high variable rate.
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
Sign up for contract expiration date reminders so you never miss a chance to shop for a new provider.
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.
