How to Switch Energy Providers
Take advantage of deregulated energy in Texas to get the best rates.

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How to switch energy providers in Texas

Many major cities in Texas allow you to choose your electricity provider, thanks to energy deregulation. Residents and business owners in large and small cities across the state — including Houston, Dallas, Fort Worth, Arlington, and Corpus Christi — have the power to choose their energy plan from various providers in a competitive market. However, an open market with a range of options can make finding a new energy provider and plan a challenge.

Fortunately, learning how to switch your electric providers has never been easier. The Choose Texas Power marketplace streamlines the process of finding the best electricity providers in your area so you can pick a new plan and switch light companies quickly and easily. With our marketplace, you can search for the cheapest energy plan, filter for your preferred features, compare options, and sign up for the best rate today — all in one place.

Illustration showing the steps to switch energy providers

Rising electricity cost trends

If you’ve noticed increasingly higher electricity bills over the last five years, you’re not alone. Based on Energy Information Administration (EIA) data, the average U.S. household paid 12.87 cents per kilowatt-hour (kWh) for electricity in 2018. By 2024, that price increased to 16.48 cents per kWh. The latest average electricity rate in the U.S. is 17.47 cents per kWh based on the most recent EIA data. Higher electricity prices can play a major role in your monthly bills, causing frustration as customers try to make ends meet.

Energy deregulation allows you to take matters into your own hands by choosing your energy provider and electricity rates from several competing companies. This opens the door to lower rates, saving you money and time spent stressing about energy costs.

The Choose Texas Power marketplace makes it simple to switch electric companies. When you enter your ZIP code, you’ll discover cheap rates from reputable local energy providers.

When to switch electric companies

In a deregulated market, you can switch electric companies anytime for any reason. You may need to switch electricity providers because you’re moving to a new location outside your current retail electricity provider (REP) service area. But there are other reasons to change electricity suppliers in Texas, from nabbing lower rates to prioritizing green energy.

You want a lower rate

If you’ve stuck with the same energy plan for several years, you could be paying significantly more than you anticipated when you first signed up. Providers often increase renewal rates or offer special incentives for new customers only. By regularly checking available plans near you at the time of renewal, you can potentially lock in better rates.

Electricity prices change often, and you may already be paying more than you’d like. If your plan has a variable rate that goes up and down each month, switching to a fixed rate can help you save and give you more stability. Even fixed rates can vary — if you signed up during a high-demand season (summer or winter), you could be paying more than if you had begun your plan in spring or fall.

Your current plan no longer fits your needs

Sometimes priorities change, and your energy plan should reflect that. Whether you’ve decided to go green or your average usage has shifted, it’s normal for your household or business needs to evolve.

Most energy plans display the cheapest electricity rates for each usage tier, making it important to ensure your monthly consumption stays within a certain range. If you routinely use more or less than the tiered threshold, you could be paying a higher rate than necessary.

Choose Texas Power can help you shop for a new plan and switch electric companies to better achieve your energy goals. Our marketplace lets you easily access each plan’s Electricity Facts Label (EFL) so you can understand the pricing structure and terms before enrolling.

You are unhappy with your current provider’s service

Deregulation encourages competition, which means you have plenty of options. There’s no reason to stay with a supplier that doesn’t meet your standards. If you’re unhappy, consider switching to a Texas energy company with better customer satisfaction ratings.

At Choose Texas Power, we vet and rate our electricity providers so you can compare options confidently. When you enter your ZIP code, we’ll show you top-rated providers near you with ratings based on price, number of plans, plan type, customer satisfaction, and more.

Express Energy and 4Change Energy currently have the highest ratings on our website, each with a perfect 5 out of 5 stars. Our marketplace reviews indicate these companies are among the best energy providers serving Texans across the state.

How to switch electricity providers

It may sound like a headache, but switching electricity companies is easy. Using the Choose Texas Power marketplace, you can filter by plan type, price, household size, provider, term length, and more to find the right plan.

Here’s how Choose Texas Power works. If you have questions about the process, call the number on your screen to speak with one of our energy experts.

1. Check your eligibility to switch energy suppliers

Only customers in deregulated areas can choose electric companies. Most parts of Texas are deregulated, but a few cities haven’t made the switch. Austin, San Antonio, and Fredericksburg, for example, remain regulated. If you’re unsure about your city, enter your ZIP code on this page to confirm eligibility.

2. Check your current contract

Make an informed decision before signing up for a new plan. Plan ahead so you can budget for any fees and have the following information ready when comparing plans (you’ll find it on a past electric bill):

  • Your current provider
  • Your rate per kilowatt-hour (kWh)
  • Any additional monthly charges or usage fees
  • Any early termination fees (ETFs)

Depending on your provider, if you switch within 14 days of your contract end date, you won’t need to pay an ETF. Variable-rate plans and some no-deposit electricity plans may not have ETFs, and fees are usually waived if you’re moving out of the provider’s service area.

3. Compare energy companies and electric rates

Once you have your details, start comparing plans. Enter your ZIP code on our marketplace to see the available electricity rates in your area. Filter by rate type, provider, or contract length to narrow your options. Review our guide to understanding electric plans for more details.

4. Choose your plan and switch light companies with confidence

When you find a plan you like, follow the prompts to sign up online, or call the number on your screen to enroll by phone with one of our energy experts. Your new provider will coordinate a seamless transition with no interruption to your service.

5. Let your new provider handle the switch

After enrolling, you’ll receive two confirmation emails — one from Choose Texas Power and one from your new provider. Your new electric company will work with your utility company and previous provider to complete the switch. Your power will continue without interruption, and your next bill will reflect your new provider.

Frequently asked questions about switching energy plans in Texas

Can I switch energy providers in my area?

You can change your electricity provider if you live in a deregulated energy market. Most of Texas is deregulated, allowing consumers and businesses to choose their own providers regardless of utility company. Some cities are not deregulated. If you’re unsure, enter your ZIP code on this page to check your eligibility.

Is it worth it to switch electricity providers?

It depends on your situation. Weigh any early termination fees against the potential savings of a lower rate. Also consider whether your current plan aligns with your preferences for customer service, green energy, time-of-use rates, and other features.

Can I switch electric companies if I owe money?

That depends on your agreement with your current provider. You may need to pay your balance before terminating service, or you may have time to pay it off after switching. Your new provider may also require a deposit if you have an outstanding balance with your previous provider.

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Let us put the power in your hands with a new electricity plan.

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