How to Switch Electricity Providers in Texas

Can you switch electricity providers in Texas?

Many Texans can select a retail electric provider, but eligibility begins with the exact service address. The answer is not the same everywhere in the state.

Address-level eligibility comes first

Retail choice exists only in areas served by competitive transmission and distribution utilities. Verify the address on the Public Utility Commission of Texas website or ask the current provider before shopping new offers.

Municipal utilities and electric cooperatives may be different

Customers inside city-owned utilities or member-owned cooperatives usually cannot switch retail suppliers. Those utilities set their own rates and rules.

Why national switching advice can mislead Texas shoppers

Guides written for other states often assume every address has choice. In Texas the distinction between deregulated and non-competitive territories matters.

What changes when you switch, and what stays the same

Switching replaces the retail electric provider and the plan terms that govern the energy charge. The physical delivery of electricity remains unchanged.

Your REP handles the plan and retail account

The new retail electric provider sets the rate, issues the monthly bill, and manages customer service for that account.

Your TDU keeps delivering power

The local transmission and distribution utility continues to own the poles, wires, and meters. It restores service after storms and reads the meter regardless of which retail provider you choose.

Why the lights should stay on during the switch

A normal provider switch is an administrative change. No technician visits the home, the meter stays in place, and service continues without interruption.

Check your current plan before you shop

Review the contract end date and any early termination fee first. Starting a new enrollment too soon can cost more than the advertised savings.

Find the contract end date

The end date appears on the current bill or in the Terms of Service. Note it before comparing new plans.

Check the early termination fee

Calculate the fee against the expected savings of the new rate. A high fee can erase any advantage for several months.

Watch renewal and auto-renewal language

Some contracts convert to a variable rate or a higher fixed rate if no action is taken. Confirm the exact renewal terms before the end date.

Gather the account details you will need

A recent electric bill supplies most of the information required for enrollment.

Service address, account number, and ESI ID

The new provider asks for the service address, ESI ID, and account number to locate the meter and complete the switch.

Usage history from recent bills

Twelve months of usage helps match the household to the right rate structure and bill-credit threshold.

Keep the account number private until you are ready to enroll

Treat the account number as sensitive data. Do not share it with door-to-door or phone solicitors unless enrollment is intentional.

Compare plans using your real kWh usage

Plans that rank lowest at one usage level can rank higher at another. Use the home's actual monthly kilowatt-hour history.

Why 500, 1000, and 2000 kWh prices can rank plans differently

Tiered rates, bill credits, and minimum-usage rules shift the effective price as consumption rises or falls.

How bill credits and usage tiers change the bill

A credit that appears only above 1,000 kWh changes the comparison for a low- or high-usage household. Check the conditions that trigger or remove the credit.

Seasonal usage matters in Texas homes

Summer air-conditioning and winter heating can double usage in peak months. Compare plans against the highest month to avoid surprises.

Read the Electricity Facts Label before you enroll

The Electricity Facts Label lists the energy charge, base charge, contract length, and early termination fee in one place. Read it before submitting any enrollment.

Energy charge, base charge, and delivery charges

Confirm whether the quoted rate includes or excludes the transmission and distribution utility delivery charge. Delivery charges appear on every bill regardless of provider.

Contract length and cancellation terms

Note the exact term length and the fee that applies if service ends early. Some plans allow a one-time move without a fee; verify the exception.

Renewable content and special pricing conditions

Renewable plans list the renewable percentage on the EFL. Review any usage requirements or seasonal adjustments that accompany the renewable claim.

Choose the rate type that fits your risk tolerance

Fixed-rate plans lock the energy charge for the contract term. Variable-rate plans move with wholesale market conditions.

Fixed-rate plans for price stability

A fixed-rate contract protects against summer price spikes but does not freeze regulated delivery charges or taxes.

Variable-rate plans and bill volatility

Variable plans can drop quickly when wholesale prices fall, yet they can rise sharply during extreme weather events.

Renewable plans without rooftop solar

Renewable content can be purchased through the retail provider. The power delivered to the home still travels over the same wires.

Fees that can erase the savings

Several charges appear only after enrollment or after leaving the old plan.

Early termination fee on the old plan

Include the remaining early termination fee in any savings estimate before switching.

Minimum usage fees, bill credits, and base charges

Plans that require a minimum monthly usage or award a credit only at higher tiers can increase the bill for smaller homes.

Deposits, late fees, and payment options

New providers may require a deposit based on credit score. Budget billing and autopay discounts should be compared when bill stability matters more than the lowest rate.

The best time to switch

The lowest-risk window occurs near the current contract expiration.

Near the end of the current contract

Waiting until the final weeks reduces exposure to an early termination fee.

When moving to a new Texas address

A move can change the available providers and the utility territory. Compare plans at the new address before transferring service.

After your household usage changes

Adding an EV charger or increasing the number of occupants can make the existing plan a poor fit. Re-evaluate when usage patterns shift.

How to enroll with the new provider

After selecting a plan, confirm every detail before authorization.

Confirm the service address and start date

Verify that the enrollment start date aligns with the contract end date of the current provider.

Review the authorization before submitting

Read the final confirmation screen that lists the plan name, rate, term length, and cancellation fee.

Save the confirmation and plan documents

Store the confirmation number, Electricity Facts Label, Terms of Service, and Your Rights as a Customer disclosure for future reference.

What happens after enrollment

The new provider submits the switch request to the Electric Reliability Council of Texas.

The new provider submits the switch

The transfer occurs on the date listed in the enrollment confirmation unless a hold exists on the account.

The old provider sends a final bill

Any remaining balance or credit appears on the closing bill. Resolve the balance promptly to avoid a switch hold.

Watch for confirmation and first-bill details

Expect a confirmation letter or email from the new provider. Compare the first full bill against the enrolled plan documents.

If you owe money or have a switch hold

An unpaid balance often blocks a new enrollment.

How a switch hold can block enrollment

A utility or previous provider can place a switch hold until the balance is paid. Resolve the hold before attempting another enrollment.

Final bills, credits, and unpaid balances

Any credit on the old account should appear on the final bill. Contact the previous provider if the refund does not arrive within the stated timeframe.

What to resolve before trying again

Clear the balance or arrange a payment plan before shopping new providers.

How your bill may look after the switch

The first bill from the new provider may separate supply and delivery charges differently than the previous format.

Supply charges and delivery charges

Supply charges reflect the new plan rate. Delivery charges remain the transmission and distribution utility tariff.

Combined billing or separate billing

Most providers consolidate charges on one bill. Confirm whether the new provider uses combined or separate billing.

Payment setup after the switch

Re-enter autopay and budget-billing preferences. Previous settings do not transfer automatically.

Sales pitches, savings claims, and account-number safety

Protect account information during any sales contact.

Treat savings claims as something to verify

Compare the advertised rate against the Electricity Facts Label at the household's actual usage before enrolling.

Watch for utility impersonation

Confirm whether a salesperson represents a retail electric provider or merely markets on behalf of one. The local utility does not sell retail plans.

Protect your account number

Share the account number only after reviewing the full plan documents and deciding to enroll.

A final pre-switch checklist for Texas shoppers

Confirm address eligibility and current contract status before comparing offers.

Compare the selected Electricity Facts Label at the household's real usage level.

Enroll only after verifying the start date, cancellation terms, renewal rules, and required authorizations.