At Choose Texas Power, we aim to provide consistent, reliable information about energy plans. Our partners do not direct our editorial content, though we may reference their products in our posts. Read about how we make money to learn more.
A guide on how to switch energy suppliers
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 changing electric companies or finding new energy plans a challenge.
Fortunately, learning how to switch electricity 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. 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.
Here’s what you need to know about switching energy providers and picking the right energy plan for your Texas home or business.
When to switch electric companies
In a deregulated market, you can switch electric companies anytime. Some customers switch electricity providers because their new location is outside their current retail electricity provider (REP) service area. But there are other reasons to change electricity providers in Texas, from nabbing lower rates to prioritizing green energy.
You want a lower rate or different plan options
Electricity prices change constantly. You may be paying more than you’d like for your current electric plan. Or, if you have a variable rate that fluctuates each month, a fixed rate may provide better stability.
If you’ve stuck with the same energy plan for several years, you could be paying significantly more for your current plan than you anticipated. That’s because energy providers often increase their renewal rates or offer special incentives for new customers for the first year. By regularly checking available plans near you at the time of renewal, you can potentially lock in better rates.
Your current plan no longer fits your needs
Sometimes priorities change, and your energy plan should account for that. Whether you’ve decided to go green or your average usage has shifted, it’s normal for your household or business needs to change.
Most energy plans display the cheapest electricity rates for each usage tier, making it important to ensure that your monthly energy consumption stays within a certain range. If your current rate is too expensive for your usage level, Choose Texas Power can help you shop for a new plan and switch electric companies to better achieve your energy goals. Our marketplace allows you to easily access each plan’s Electricity Facts Label (EFL) to understand the specific payment outline of your plan.
You are unhappy with your current provider’s service
Deregulation encourages competition, which means you have plenty of options for electric service. There is 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.
Here at Choose Texas Power, we vet and rate our electricity providers so you can easily compare your options and know what to expect from an energy company. When you enter your ZIP code, you’ll find a list of top-rated electricity providers near you with ratings based on price, number of plans, plan type, customer satisfaction, and more.
TXU Energy, Frontier Utilities, and TriEagle Energy have the highest ratings on our website, coming in with 4.8 stars out of 5. Our Choose Texas Power marketplace reviews found that these companies are some of 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, and it only takes a few steps to find a new provider. Using the Choose Texas Power marketplace, you can filter by plan type, price, household size, provider, length of service, and more.
The following are the steps to change your electric provider on our site. 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 are a few cities with regulated markets, for instance. If you’re unsure about your city, enter your ZIP code on our marketplace to determine if you’re eligible.
2. Check your current contract
Before you change your electric company in Texas, you should prepare to make an informed decision. Plan ahead so you can budget for any fees you’ll have to pay to make the switch.
Have the following information ready:
- Your current provider’s name
- Your rate per kilowatt-hour (kWh)
- Any other monthly charges or usage fees
- Any early termination fees (ETFs)
If you switch electricity plans within 14 days of your current contract’s end, you won’t need to pay an ETF. Similarly, variable-rate plans and some no-deposit electricity plans may not have ETFs, and providers usually waive fees if you’re moving out of their service area.
3. Compare energy companies and electric rates
Now that you understand the switching process, you can exercise your power to choose a Texas energy provider. When you enter your ZIP code, we’ll show you available electricity rates in your area. You can filter by rate type, provider, or contract length to narrow your options. Review our guide to understanding electric plans for more information about plan types.
4. Choose your plan and switch light companies with confidence
You can sign up over the phone or online when you find a plan you like. Unlike some other marketplaces, we won’t send you to another website to complete the process, and you can sign up right here in minutes. Your new provider will ensure your transition goes smoothly with no interruption to your service.
5. Relax while switching electric companies
Once you sign up for a new electricity plan, we’ll give you a confirmation number. You’ll receive two confirmation emails — one from Choose Texas Power and one from your new provider. Your new electric company will coordinate with your utility company and previous provider to switch your service. Your power will continue without interruption, and your next bill will show the change in electricity 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 spent 12.87 cents per kilowatt-hour (kWh) on electricity in 2018. By 2023, that price increased to 16.00 cents per kWh. 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.
Frequently asked questions
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 their utility company. Enter your ZIP code to see if your city offers the freedom to change plans.
Is it worth it to switch electricity providers?
That depends on your situation. Weigh any early termination fees you might have to pay against potential cost savings of a lower rate. You should also consider whether your current plan fits 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 the details of your agreement with your current provider. You may need to pay your balance in full before terminating service, or you may have time to pay it off after switching energy suppliers. Your new provider may also require a deposit before beginning service if you have an outstanding balance with your previous provider.
Deregulated energy made easy
Let us put the power in your hands with a new electricity plan.
