How To Switch Energy Providers in Texas

Your guide to switching energy providers in Texas

Thanks to deregulation, many Texans can choose their own electricity provider rather than be limited to their local utility company. Over 85% of the state is deregulated, including major cities like Houston, Dallas, Fort Worth, and more.

However, the sheer number of options can make switching providers feel overwhelming. The good news is that Choose Texas Power makes it easy to change electricity providers in just a few steps. You can review rates, evaluate providers, and complete the switching process all in one place. Enter your ZIP code on this page to get started.

What you need to know before switching providers in Texas

There are a couple of general rules to keep in mind before you switch light companies.

1. Fixed-rate energy plans typically charge an early termination fee (ETF) if you try to end your contract early. Check your plan’s Electricity Facts Label (EFL) for details to avoid an expensive penalty.
2. If you move outside of your current provider’s service area, you do not need to pay an ETF for switching. Simply show proof of your move to get the fee waived.
3. If you have unpaid energy bills, you may be placed under a switch-hold, which prevents you from switching providers until you pay your outstanding balance.
4. You can typically switch plans without penalty within 14 days of your current contract ending. Double-check with your provider to avoid an unnecessary fine.

When should I switch electric companies?

Switching energy companies can help you find a better match for your home and business. While every situation is different, there are certain signs that it’s time to explore other options. Here are some common reasons Texans make the switch.

Your energy bills are too expensive

Overpriced energy bills are one of the most common reasons people want to switch energy companies, and for good reason. If your energy bills continue to feel too expensive and you suspect you’re overpaying, consider switching. Just remember that the cheapest rate doesn’t always translate into lower bills. It’s more important to pick a plan that matches your monthly energy usage. Check your past bills to find out how many kilowatt-hours (kWh) you typically use, and find plans that offer a good price for your usage tier.

Your contract is ending soon

If you forget to set up electricity before your current contract ends, you’ll be enrolled in a default plan that usually contains an expensive variable rate. Avoid this common pitfall by scheduling your next energy plan before it’s too late. The best time is 14 days before your current contract expires because you won’t be charged an ETF.

Your current plan no longer fits your needs

Your energy needs can change over time — whether you’re using more electricity, cutting back, or upgrading the size of your home. If your current plan no longer fits your usage or priorities, it may be time to explore other options.

Many plans are priced by usage tier, so if your monthly consumption falls outside that range, you could be paying more than necessary. Comparing plans and reviewing the EFL can help you find a better fit for your household or business.

You are unhappy with your current provider’s service

If your provider isn’t meeting your expectations, there’s no need to stick with them. The deregulated market gives you the flexibility to switch electric companies in Texas, whether you need better service, pricing, or plan options.

Choose Texas Power makes it easy to compare providers based on factors like rates, plan types, and customer satisfaction. By entering your ZIP code, you can quickly find top-rated Texas electricity companies like TXU Energy, Gexa Energy, and 4Change Energy and choose one that better fits your needs.

How to switch your electricity providers

Switching electricity providers only takes a few minutes on Choose Texas Power’s free marketplace. Browse competitive rates from top providers and switch all in one place. Here’s how it works:

1. Check your eligibility to switch energy suppliers

Only customers in deregulated areas can choose their electric company. Most parts of Texas are deregulated, but a few cities haven’t made the switch. Austin, San Antonio, and Fredericksburg, for example, remain regulated. If you’re unsure about your city, enter your ZIP code on this page to confirm eligibility.

2. Check your current contract

Before switching electric companies in Texas, review your current plan to understand any potential fees or restrictions. Understanding the plan’s details can help you avoid unexpected costs and make a more informed decision.

Check a recent electricity bill to find key details, including your rate per kWh, monthly fees, and whether an ETF applies. In many cases, you can switch without paying an ETF if you’re within 14 days of your contract’s end date. ETFs are also typically waived if you’re moving outside your provider’s service area, and some variable-rate or no-deposit plans may not include them.

3. Compare energy companies and electric rates

Once you have the details, you can start comparing plans. Enter your ZIP code on our marketplace to browse the available electricity rates in your area. Filter by rate type, provider, or contract length to narrow your options. You can also take a quick quiz to simplify your shopping experience.

Review our guide to understanding electric plans for more details.

4. Choose your plan and make the switch

When you find a plan you like, follow the prompts to sign up online. If you have any questions, you can call the number on your screen to speak with one of our energy experts and complete your enrollment by phone.

5. Let your new provider handle the switch

After switching electric providers, you’ll receive two confirmation emails — one from Choose Texas Power and one from your new provider. Your new electric company will work with your utility company and previous provider to complete the switch. Your power will continue without interruption, and your next bill will come from your new provider.

Curious about what happens next? Review our new service guide to find out what you should do after signing up for a new plan.

When is the best time to switch?

Some times are more advantageous to switch than others. Keep these tips in mind if you’re considering switching:

1. Switch within the last 14 days of your contract. If your contract is ending soon, switching within 14 days of your term ending saves you from paying an ETF or dealing with a default renewal plan once your contract expires.
2. Spring and fall tend to have the cheapest rates. Energy prices tend to rise during periods of high demand, such as summer in Texas. Many shoppers find better rates in low-demand seasons like spring and fall.
3. Moving is the best time to avoid an ETF. Texas deregulation rules let you skip the ETF if you move outside your provider’s service area, which makes moving the perfect time to switch. Browse rates on our marketplace if you have a move coming up to learn if there’s a better deal.

Choose Texas Power can help you decide if switching is worth it

Choose Texas Power’s free marketplace is backed by energy experts who can help you decide if switching is the right choice. We strive to help Texans take control of their energy choice, and that assistance doesn’t end once you’ve signed up for a plan. If you’re second-guessing your current energy plan, we can help assess your circumstances and advise you on the next best steps, even if that means switching to a different provider.

Our team has put together energy shopping guides with unique Texas insights to help inform your decision. Explore some of our top resources:

• Types of energy plans
• No-deposit electricity plans
• Prepaid electricity plans
• Bill credit electricity plans
• Free nights and weekends electricity plans
• Renewable electricity plans
• Best energy plans for high-usage households
• Best energy plans for low-usage households

Frequently asked questions about switching energy plans in Texas

Can I switch energy providers in my area?

You can switch electricity providers if you live in a deregulated area — which includes most of Texas. Some cities are not deregulated, so if you’re unsure, enter your ZIP code on this page to check availability in your area.

Is it worth switching electricity providers in Texas?

It depends on your situation. Weigh any ETFs against the potential savings that you’ll get with a lower rate. Also consider whether your current plan aligns with your preferences for customer service, green energy, time-of-use rates, and other features.

Can I switch electric companies if I owe money?

Whether you can switch your energy company depends on your agreement with your current provider. You may need to pay your balance before terminating service, or you may have time to pay it off after switching. Your new provider may also require a deposit if you have an outstanding balance with your previous provider.

Will my power go out when I switch providers?

No, there should be no interruptions to your power when you switch electricity providers in Texas. Your utility company is responsible for delivering your electricity and will continue to supply power regardless of which provider you choose.