En Español (866) 963-9353
PO Box 975428
Dallas, TX 75397-5428

How to Switch Electricity Providers in Texas

We're Here to Help

In most parts of the world, your electricity supplier is determined by your location, unlike in Texas, where deregulation since 2002 has allowed consumers to choose their electricity provider. About 85% of Texas is deregulated, with only a few cities under regulation, like El Paso, San Antonio, Austin, and Lubbock.

With the deregulated Texas energy market, the retail electricity providers (REPs) can buy electricity at a wholesale price and sell it at a relatively lower rate while still offering other customer-friendly products, such as free nights and weekends, that some electricity providers offer. Electricity consumers can purchase electricity based on customer ratings, rewards, terms and conditions, price, and the nature of the company’s customer care service, among many other factors. 

Energy companies such as Payless Power offer consumers various plan options and innovative tools to save money and limit unnecessary expenditures.

When Can I Switch Electricity Providers in Texas?

Choosing the right time to change your retail energy provider is just as important as changing it. In most cases, when we decide to change our electricity provider, the main thing that is usually on our minds is the price. However, we need to be strategic and consider other factors, such as whether the timing is right. Are we making the right move? Are there consequences for this move, and are we ready to face them? We can make the switch only after we’ve answered these questions and are 100 percent sure this is the right move.

So, When Is the Right Time to Switch Electricity Providers?

The best time to change your electricity provider is:

  • It’s wise to consider switching electricity providers when your current contract is nearing its end or has already expired. New customer offers often expire, leading to placement on a default, more expensive plan. Aim to switch within 14 days before the contract with your current provider ends to avoid early termination fees, balancing timing for a smooth transition.
  • Just before winter or summer, especially if you are on a variable electricity plan. Energy demands during winter and summer are usually at their highest peak, so getting a cheaper electricity plan during these periods is almost impossible. The best time to switch electricity providers in Texas is just before the summer or winter.
  • When all indicators show a possible rise in electricity prices, before an increase, there are always some rumors and news about a probable surge in energy prices. And when the first provider announces an increase in its energy rates, the others promptly follow suit. When there is a likelihood of a spike in electricity prices, the right thing to do is to switch to a fixed-rate electricity plan.
  • When moving houses. If you are moving to a new house or city, this is the right time to relook at and assess your energy needs. An increase in appliances, such as a new heating system, fridge, washing machine, or some added rooms, may change your energy consumption rates.

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

In Texas, the time it takes to switch electric providers can vary depending on several factors, including the specific provider you’re switching to, the type of plan you’re choosing, and any requirements or processes set by the provider or the Texas Public Utility Commission (PUC). However, the process typically takes 1 to 2 billing cycles to complete.

Here’s an overview of the steps involved in switching electric providers in Texas:

Research and Compare Plans: Start by researching and comparing electric plans offered by different providers. Consider factors such as rates, contract terms, renewable energy options, and customer reviews.

Choose a New Provider and Plan: Take control of your energy choices by selecting a new provider and plan that best meets your needs. Once you’ve made your decision, reach out to the provider to initiate the switching process. You may be required to sign a new contract or agreement, further solidifying your choice.

Notification to Current Provider: Rest assured, your new provider will handle the notification process, which typically happens electronically through the Texas market system, making the transition smooth and hassle-free.

Processing Time: While the actual processing time for the switch can vary, you can be confident that your new provider will ensure a seamless transition. You’ll continue to receive service from your current provider until the switch is completed, ensuring an uninterrupted power supply.

Confirmation and Start of Service: Once the switch is finalized, you’ll receive confirmation from your new provider, and your service will officially start with them. You’ll begin receiving bills based on the new plan and rates you’ve chosen.

Before making the switch, it’s essential to review the new plan’s terms and conditions, including any early termination fees or contract obligations. Additionally, some providers may offer expedited switching options for certain plans, so it’s worth checking with your chosen provider for specific timelines.

Is it easy to switch electricity providers?

Yes, switching electricity providers in Texas is generally straightforward and can be done quickly. The competitive retail electricity market in Texas allows consumers to choose from various providers offering different plans, rates, and services. Here are some reasons why switching electricity providers is typically considered easy in Texas:

Choice of Providers: Texas residents have the freedom to choose their electricity provider from a wide range of options. This competitive market encourages providers to offer competitive rates and innovative plans to attract customers.

Online Tools and Resources: Many providers offer online platforms where customers can compare plans, check rates, and sign up for services. These tools make it convenient to research and switch providers from the comfort of your home.

Streamlined Switching Process: The switching process is often streamlined and can be completed online or over the phone. Once you’ve chosen a new provider and plan, they will handle the necessary steps to switch your service seamlessly.

No Interruption of Service: Switching providers in Texas does not result in any interruption of service. You’ll continue to receive electricity as usual throughout the switching process, and the transition is typically seamless.

Regulatory Support: The Texas Public Utility Commission (PUC) oversees the retail electricity market and ensures that switching providers is transparent and fair. It provides information and resources to help consumers understand their options and rights when choosing an electricity provider.

The combination of market competition, online tools, streamlined processes, and regulatory oversight makes it easy for Texas residents to switch electricity providers to find the best rates and plans for their needs.

Can I Switch Electricity Companies if I Owe Money in Texas?

Yes. You can change electricity providers in Texas even if you owe money unless your contract has a switch hold. A switch hold is a clause that prevents switching until obligations are met. If the contract does not have a switch hold, you can switch electricity companies as long as you pay a deposit to begin a new deal with the new electric company. If, for some reason, your electricity is already disconnected, discuss a debt-clearing plan with your provider. 

It is advisable that you pay whatever is owed and switch to a prepaid electricity plan right here at Payless Power. Remember that if you don’t pay your bill as agreed, it may negatively impact your credit score, making it even more challenging to switch to a new provider in the future.

What Happens After You Switch Electric Providers?

After you switch electric providers, several things happen to ensure a smooth transition and continued electricity service:

Confirmation of Switch: Once you’ve completed the process of switching providers, you’ll typically receive confirmation from your new provider. This confirmation may include details such as your new plan, rates, contract terms (if applicable), and the effective start date of your service with the new provider.

Continued Electricity Service: There is no interruption in your electricity service during the switch. You’ll continue to receive electricity as usual without any disruptions.

Billing Transition: Your billing cycle may change slightly after switching providers. You’ll start receiving bills from your new provider based on the rates and terms of your new plan. It’s essential to review your first few bills from the new provider to ensure accuracy and understand any changes in billing format or payment methods.

Customer Account Setup: Your new provider will set up a customer account for you in their system. This account will allow you to access your billing information and usage data and manage your account settings online or through their customer service channels.

Customer Support: Your new provider will offer customer support services to assist you with any questions, issues, or account management needs. This may include online chat support, phone support, or in-person assistance at local offices.

Rate Changes and Contract Terms: If you switch to a new plan with different rates or contract terms, you’ll experience these changes according to the terms outlined in your agreement with the new provider. Make sure to review your plan details to understand how rates may vary over time and any obligations or benefits associated with your chosen plan.

Overall, switching electric providers should result in a seamless transition with continued electricity service, accurate billing, access to customer support, and adherence to the terms of your new plan or contract.


The Best Way to Switch Energy Providers

Let’s sum it up. Below are tips on the best way to switch energy providers in Texas.

  • Review your current electric plan: Check how much it will cost to renew your existing contract and compare it with the other plans on the market. Typically, renewable rates are higher than what new customers pay. However, if the company offers a lower rate, it is wise to carefully read its Electricity Fact Label (EFL) before making the final decision.
  • Do the shopping early: Most Texas electricity providers allow you to set a future start date, meaning you can lock in the low rate today even if you still have 90 or 30 days before your current contract runs down.
  • Avoid early termination fees: Most companies will not penalize for switching electricity providers no more than 14 days before the current contract expires.
  • Do not terminate your old contract: This will help you avoid a lapse in service and allow for a smooth transition. When the new deal begins, the electricity provider will handle the termination with your former provider.

If you want to switch to one of our prepaid plans, contact our customer service team to get you started as soon as possible!

What our customers are saying

See why our power customers say we're the best electricity provider in Texas!

Affordable and easy to make payments

I was worried about getting electricity for my home through a prepaid company. I was calling around to see different rates then going through all the hassle of credit checks while dropping points each…

Christine M. in Killeen

Happy Customer

I have been with this company for several years and have been very happy since. Even when I moved, they made my usually stressful situation very easy and carefree. I recommend them to everyone that I…

Julia L. in Webster

Long term customer

I have enjoyed the service for 2 years now. In the beginning this service was planned to be temporary but with the service being so effective for me i decided to keep it for the long haul. I’m a happy customer.

Kalandra H. in McKinney