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Texas power providers often charge an early termination fee (ETF) if customers choose to end their electricity plan before the contract expires. Early termination fees are standard for fixed-rate energy plans that require a contract. Your plan’s Electricity Facts Label (EFL) will detail any fines in your contract. Keep reading to learn more about how ETFs work, how to avoid paying a penalty, and the cost of specific providers’ ETFs.
If you choose to cancel your contract before the term length is over, you may incur a penalty. Most Texas electricity plans that require you to sign a contract will also include an ETF. Early termination fees are determined by your electricity provider and can vary by plan length or provider. On average, they range from $150 to $295.
Not every situation will result in an early termination fee. If you move outside of your current provider’s service area, the company will waive your fee. In this scenario, you would need to show your current provider proof of your move when you switch energy providers. Choose Texas Power can help you find a new power plan if you move. Enter your ZIP code to explore more options.
Most energy providers will also waive the ETF in the case of extenuating circumstances, such as home loss due to a natural disaster. If this has happened to you, contact your electricity company to inform them of your situation.
Signing up for a plan without a penalty is the best way to avoid paying an early termination fee. Variable-rate or month-to-month electricity plans typically do not issue a cancellation fee because there is no contract.
However, variable-rate plans are not right for everyone. If you want to lock in a fixed rate, choose a plan length that fits your needs. Contract terms usually range anywhere from six to 36 months, and rates are usually cheaper if you sign up in the spring or fall when demand is lower. Also, consider when your contract will end because renewing in summer or winter could mean higher prices. With the right timing, you can avoid ETFs and find a plan that fits your schedule and budget.
Some energy companies also offer satisfaction guarantees, allowing you to switch or cancel plans within 30–90 days of signing up. Make sure to carefully read the EFL of any plan you are considering to learn about potential fees, satisfaction guarantees, and other important features.
Each energy company in Texas sets its ETFs, and the cost may vary by plan or contract length. Some charge a flat fee while others charge per remaining month on the contract. Here’s what to expect from providers on our marketplace:
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