Why many Texans say goodbye to their old provider

A customer survey conducted by our energy team found over 40% of participating Texans leave their energy provider due to price. But that’s not the only reason — hidden costs, customer service, and reliability concerns also contribute to customer dissatisfaction. Out of 582 total responses, here’s what pushed real customers to switch energy providers.

For Texans, price is paramount

If you feel burdened by your energy bill, you’re not alone. Price was the top reason customers in our survey left their old provider. Here are a few common scenarios that may incentivize customers to switch providers.

1. They were hit with higher renewal fees. When you sign an energy contract, your rate is secure for that time period only. After the term expires, your provider will present you with a renewal rate. For many customers, renewal rates are higher than their original rate.
2. Their energy usage didn’t match the plan’s bill credit threshold. Bill credit plans are a great way to save on your bills, but they come with a caveat. To receive the credit, you have to use the specified amount of energy outlined in the plan’s Electricity Facts Label (EFL). If your energy usage doesn’t match the requirements, you’ll fall into a different rate tier and could end up with a more expensive bill than anticipated.
3. Rates have dropped since they signed up. Electricity rates fluctuate month-to-month, with certain times of the year being more expensive than others. For instance, summer and winter tend to be pricier because the electricity demand is higher due to the weather. In contrast, spring and fall typically have milder weather and rates. Consumers may feel inspired to switch providers if they locked in a higher rate during an expensive month, only to find prices are cheaper once the seasons shift.
4. Unexpected fees erode trust. Unfortunately, your electricity rate is not the only thing you pay for on your bill. Taxes and utility delivery fees — which are unavoidable — are also added to your total amount. But many providers also tack on additional charges like deposits, late fees, and early termination fees (ETF). Texans might be pushed to the point of switching if they feel misled by additional charges.

The good news is that your power to choose enables you to find a different provider or plan if your current one isn’t working. Instead of settling for an overpriced plan or unexpected charges, put your budget first and find a more transparent provider.

Helpful tip: Every plan on our marketplace contains an EFL, which explains your plan’s details. This document lays out your electricity rate, usage requirements, and additional fees. Read the EFL before signing up for a plan to avoid surprises down the road.

Energy consumers won’t settle for poor customer service

Over one in 10 Texans who took our survey said bad customer service was the main reason they switched providers. When you have a pressing question about your energy bill or account, a good customer service experience goes a long way. For many customers, unreliable service is a headache they don’t want to deal with. Billing problems ranked lower on the list of concerns, but this issue also falls within the category of customer service issues.

Luckily, you’ve got options. Instead of wasting time on the phone trying to correct these errors, many Texans walked away from their provider, and you can too. Numerous suppliers compete for your business in deregulated markets, placing the power in your hands to pick the best one.

Pro tip: Our marketplace lets you filter by provider rating. If you feel frustrated by your provider’s customer service, find a more popular provider rated highly by our energy experts and real customers.

Consumers ditch term lengths that don’t fit

Almost 20% of consumers felt stuck with an energy contract that didn’t work for them. Some thought they’d save money under a bill credit plan, but they didn’t meet the usage requirements and were stuck with an expensive bill. Others signed contracts that were too long (and too expensive). Unfortunately, these are common pitfalls in Texas’ deregulated market.

The upside to these problems is that you can avoid them with a little preparation. Here’s how:

• Know your monthly energy usage. Check your past energy bills to find out how much energy you use on average. Then, use our marketplace filters to tailor your results and find the best match.
• Pick a more realistic contract length. If you want flexibility, aim for a shorter contract length like a month-to-month plan. If you want more predictable bills, consider one- to three-year contracts for more stability.

Aligning your plan’s features with your lifestyle and energy habits will result in more affordable bills and greater peace of mind.

Reclaim your power to choose energy

Our survey shows that Texans are raising the bar for what they expect from their provider — and energy deregulation makes that possible. Instead of putting up with overpriced bills, unexpected fees, or bad customer service, find a provider who doesn’t give you a headache.

Choose Texas Power connects shoppers with high-quality providers and plans. Take your energy choice into your own hands and find a provider that doesn’t make the same mistakes as your last one.