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Texas power providers often charge an early termination fee (ETF) if customers choose to end their electricity plan before the contract expires. Early termination fees are common for energy plans that require a contract, such as fixed-rate plans. Your plan’s Electricity Facts Label (EFL) will detail any fines in your contract. There are some exceptions — keep reading to understand your options and how to avoid paying a penalty.
If you choose to cancel your contract before its end date, you may incur a penalty. Most Texas electricity plans that require you to sign a contract will also include an ETF. Early termination fees are typically a set fine determined by your electricity provider in your EFL and can vary by plan length and provider. For example, this Gexa Energy fixed-rate plan holds a $150 fine in the event of early cancellation.
Not every situation will result in an early termination fee. If you move outside of your current provider’s service area, the company will waive your fee. In this scenario, you would need to show your current provider proof of your move before you switch energy providers. Choose Texas Power can help you find a new power plan if you move. Enter your ZIP code to explore more options.
Most energy providers will also waive the ETF in the case of extenuating circumstances, such as home loss due to a natural disaster. If this has happened to you, contact your electricity company to inform them of your situation.
Signing up for a plan without a penalty is the best way to avoid paying an early termination fee. Variable-rate or month-to-month electricity plans typically do not require a fee because there is no contract.
Some energy companies also offer satisfaction guarantees, allowing you to switch or cancel plans within 30–60 days of signing up. Make sure to carefully read the Electricity Facts Label of any plan you are considering to learn if it includes a fee, satisfaction guarantee, or other important features.
