How to Switch Electricity Providers in Texas

Switching electricity providers in Texas might sound complicated, but with the deregulated energy market, it’s easier than ever to explore your options and find the best electric plan for your needs. Whether you’re looking for cheaper rates or more flexible contract terms, here's everything you need to know about switching providers to make sure you get the best deal.

Understanding Deregulated Zones: Can You Switch?

Texas’s deregulated electricity market covers around 80% of the state, which includes urban areas like Houston, Dallas, Fort Worth, Corpus Christi, and Lubbock. If you're in one of these deregulated zones, you have the power to shop for electricity plans. The easiest way to check your eligibility is by entering your ZIP code on the Texas Public Utility Commission's website or using EnergyBot to see which plans are available in your area.

Not in a deregulated city? That means you may be served by a municipal utility or electric co-op, and switching isn’t an option for you.

Why Switch Electricity Providers?

Electricity rates fluctuate, and what seemed like a good deal a few months ago may not be so appealing today. Here are some common reasons Texans switch providers:

Lower Rates: As the market changes, new plans with lower rates become available. Switching providers can help you lock in a better deal and reduce your monthly bills.
Flexible Contracts: Some consumers prefer short-term plans for flexibility, while others look for long-term fixed rates. Either way, switching allows you to find the best fit for your current needs.
Renewable Energy Options: With increasing awareness of environmental issues, many customers switch to providers that offer green energy plans sourced from wind or solar power.

Switching providers in Texas isn’t just about finding the cheapest plan—it's also about finding the right plan for your preferences.

What to Know Before You Make the Switch

Before switching electricity plans, it’s important to review the details of your current contract. Pay close attention to the contract's end date and whether there are any early termination fees. These fees can sometimes eat into your potential savings.

Understanding your monthly energy usage will also help you when comparing plans and rates. Many energy plans advertise low prices, but those rates can vary based on how much electricity you actually use.

For example, a provider might offer an attractive rate for low-usage households, but if your energy consumption is higher, you could end up paying more than expected. Luckily, tools like EnergyBot can connect directly to your utility and provide personalized estimates based on your actual usage.

How to Choose the Right Provider

Once you're ready to explore your options, comparison tools are your best friend. Providers in Texas offer a wide variety of plans, so it's worth paying attention to the following factors:

Price Per Kilowatt-Hour (kWh): The core of any electricity plan, this is the price you pay for the energy you use. It’s the most straightforward way to compare costs between different plans.
Contract Terms: Electricity plans can range from month-to-month agreements to contracts lasting several years. Shorter contracts offer more flexibility, while longer contracts often come with more stable rates.
Additional Features: Some plans offer perks like bill credits, renewable energy, or special deals for consistent energy usage. However, it's important to read the fine print, as these features may not always result in savings.

Be cautious of plans that sound too good to be true. For instance, "free nights and weekends" or bill credit plans can be appealing but may come with higher overall rates or time of use requirements that don’t fit your lifestyle.

Making the Switch

Once you’ve found the right plan, the switch itself is usually quick and easy. When you enroll with a new provider, the transition happens behind the scenes—your power won’t be disrupted, and you won’t need to worry about outages during the switch. The only change you’ll notice is on your bill.

The timeline for switching providers in Texas typically spans one to two billing cycles, so your new rates might not take effect immediately. Your new provider should keep you updated throughout the process.

Keeping an Eye on Future Rates

Switching electric providers isn’t a one-time thing. Texas’s deregulated market is competitive, which means rates change frequently. Even after you've made the switch, it’s smart to keep an eye on the market to ensure your current plan is still the best option. We recommend marking your calendar a couple of months before your contract expires so you can review rates and consider switching again if there’s a better deal available.

FAQs About Switching Electricity Providers

How do I change my electricity provider in Texas?

Changing your provider is simple. Compare electricity plans using EnergyBot, choose the plan that best fits your needs, and sign up online in minutes. Your new provider will coordinate with your local utility to make the switch without any interruptions to your electricity service.

How long does it take to switch electric providers in Texas?

It usually takes about one to two billing cycles for the switch to be completed. You’ll receive updates from your new provider during this time.

When can you switch electricity suppliers in Texas without penalty?

You can switch providers without penalty within 60 days of your current contract ending. Be sure to check your contract for any early termination fees that might apply if you switch before this window.

Who has the cheapest electricity rates in Texas?

Electricity rates vary depending on market conditions, location, and plan features. To find the cheapest rates, use a comparison tool like EnergyBot, which provides real-time rates on available plans in your area.