How to Switch Energy Providers

How to switch energy providers in Texas

Thanks to deregulation, many Texans can choose their own electricity provider rather than be limited to local utility rates. In cities like Houston, Dallas, Fort Worth, Arlington, Corpus Christi, and many more across the state, residents and businesses can compare plans and take advantage of competitive rates and features.

However, the sheer number of options can make switching electricity providers in Texas feel overwhelming. The good news is that switching electric providers doesn’t have to be complicated.

The Choose Texas Power marketplace makes it easy to compare plans, filter by your preferences, and change electric companies in just a few steps. You can review rates, evaluate features, and complete the switching process all in one place. Enter your ZIP code on this page to get started.

Rising electricity cost trends

Americans have seen their electricity costs rise steadily over the past decade. Based on Energy Information Administration (EIA) data, the average U.S. household paid 12.55 cents per kilowatt-hour (kWh) for electricity in 2016. By January 2026 (the latest data available), that price increased to 17.45 cents per kWh. With this much variation, it’s important to understand how to secure a rate that meets both your needs and budget.

Energy deregulation allows you to take some control over your rates by choosing your energy provider and plan from a wide range of options. If your current rates are stretching your budget, you can compare options and potentially find a better fit.

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

When to switch electric companies

In Texas’ deregulated market, you can switch electric companies at any time and for any reason. While a move outside your current provider’s service area is a common reason, many customers also choose to change electric companies to secure lower rates, find better plan features, or prioritize renewable energy.

You want a lower rate

If you’ve been on the same electricity plan for a while, you may be paying more than expected — especially if your rate increased after your first contract expired. Providers often offer better pricing to new customers, so comparing plans at renewal can help you lock in a lower rate.

Electricity prices also change throughout the year. If you’re on a variable-rate plan, switching to a fixed-rate option, especially during low-demand seasons like spring or fall, may get you a cheaper electricity rate.

Your current plan no longer fits your needs

Your energy needs can change over time — whether you’re using more electricity, cutting back, or switching to a different plan type. If your current plan no longer fits your usage or priorities, it may be time to explore other options.

Many plans are priced by usage tier, so if your monthly consumption falls outside that range, you could be paying more than necessary. Comparing plans and reviewing the Electricity Facts Label (EFL) can help you find a better fit for your household or business.

You are unhappy with your current provider’s service

If your provider isn’t meeting your expectations, there’s no need to stick with them. The deregulated market gives you the flexibility to switch electric companies in Texas, whether you need better service, pricing, or plan options.

Choose Texas Power makes it easy to compare providers based on factors like rates, plan types, and customer satisfaction. By entering your ZIP code, you can quickly find top-rated Texas electricity companies like TXU Energy, Express Energy, and 4Change Energy and choose one that better fits your needs.

How to switch electricity providers

Switching electric providers doesn’t have to be overwhelming. With the Choose Texas Power marketplace, you can quickly filter plans by price, term length, provider, and more. Here’s how it works:

1. Check your eligibility to switch energy suppliers

Only customers in deregulated areas can choose their electric company. 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

Before switching electric companies in Texas, review your current plan to understand any potential fees or restrictions. This can help you avoid unexpected costs and make a more informed decision.

Check a recent electricity bill to find key details, including your rate per kWh, monthly fees, and whether an early termination fee (ETF) applies. In many cases, you can switch without paying an ETF if you’re within 14 days of your contract’s end date. ETFs are also typically waived if you’re moving outside your provider’s service area, and some variable-rate or no-deposit plans may not include them.

3. Compare energy companies and electric rates

Once you have the details, you can start comparing plans. Enter your ZIP code on our marketplace to browse 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. If you have any questions, you can call the number on your screen to speak with one of our energy experts and complete your enrollment by phone.

5. Let your new provider handle the switch

After switching electric providers, 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 come from your new provider.

Frequently asked questions about switching energy plans in Texas

Can I switch energy providers in my area?

You can switch electricity providers if you live in a deregulated area — which includes most of Texas. Some cities are not deregulated, so if you’re unsure, enter your ZIP code on this page to check availability in your area.

Is it worth switching electricity providers in Texas?

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.