Deregulation gives most Texans the ability to choose their electricity provider instead of buying from a monopoly utility. About 85 to 90% of residents live in deregulated areas where dozens of Retail Electric Providers (REPs) compete for business. In regulated areas – such as Austin Energy, CPS Energy (San Antonio) and rural co‑ops – you cannot switch providers, so eligibility is the first step before shopping.
Below is a quick step-by-step guide to switching electricity providers. In the following sections, we’ll provide a more detailed explanation of what to consider at each stage of the process.
Before comparing plans, decide what matters most to you. At Power Wizard, we recommend considering factors like preferred rate structure (e.g. simple fixed vs. time‑of‑use), contract length and other features. Here is a breakdown of all the factors you should consider:
Time‑of‑use plans usually offer cheaper off‑peak electricity but higher rates during peak hours. They can backfire if you can’t shift your usage to off‑peak periods, but can be excellent for people who can shift their usage or have homes with solar panels but don’t produce any excess electricity.
Providers often offer plans like free nights/weekends, bill credits, or EV charging perks, but these promotions can hide higher rates and may not work for everyone. Understanding what you are signing up for is imperative:
Electricity rates fluctuate with supply, demand, and other factors. Historical data from market analysts show that the best time to shop for a plan is during spring (April–May) and fall (October-November), when demand is low and prices dip. By contrast, summer (July–August) and winter (January) are the worst times to shop because extreme temperatures drive up demand and rates. Be aware that market prices can spike after extreme weather events or natural‑gas price volatility.
You do not have to wait for your contract to expire to begin shopping. Many providers allow you to lock in a new rate up to 60 days in advance. A few tips to take advantage of low prices are shifting your contract expiration into the spring or fall by choosing odd‑length contracts (e.g., 9 months) or going month‑to‑month temporarily (but be careful because these plans tend to be more expensive). Some providers will even reimburse your ETF when you switch.
Switching providers is usually worthwhile at the end of your contract because renewal rates tend to be higher than promotional rates. When you enroll with a new provider, you will need the following:
Whether you enroll in a marketplace/comparison site or in the REP’s website, your new provider will coordinate with the utility to complete the transfer; you do not need to contact your old provider. There will be no interruption to service. You will receive confirmation emails once the switch is complete.
Texas law requires a 3-day cooling-off period after you enroll in a new plan. During this time, you can cancel without penalty if you change your mind or discover a better option. After this window closes, ETFs apply if you back out before your contract ends. However, some providers go further by offering “satisfaction guarantees” that extend this flexibility to 30 or even 60 days from the start of service. Under these programs, you can cancel or switch to another plan within the same company without paying an ETF. Always read the provider’s terms carefully to understand whether these extended grace periods apply and whether they refund deposits or fees if you cancel.
Your first bill is the best way to verify that the plan you signed up for matches what was advertised. Cross-check the rate charged per kilowatt-hour (kWh) against the EFL you reviewed during enrollment. Look for hidden charges, such as minimum usage fees or delivery charges, that may have been overlooked. If the numbers don’t match your EFL or the bill seems confusing, contact your provider immediately—Texas REPs are obligated to explain all charges. Catching errors early prevents overpayment and ensures you can still take advantage of your cooling-off period or satisfaction guarantee if something is wrong. Keeping copies of your contract and EFL makes this process easier.
There is no single cheapest provider for everyone. Rates depend on your service area, contract length, usage level, and lifestyle. However, as of 09/13/2025, 7:17:14 AM CDT the lowest advertised residential rates are as follows:
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Always compare plans using your actual monthly usage. A plan with the lowest 1,000 kWh rate might not be cheapest if your household uses 500 kWh or 2,000 kWh. Renewable plans, while sometimes slightly more expensive, have become competitive as Texas builds more renewable energy generation.
Switching electric providers in Texas can lower your monthly bills, provide access to renewable energy and improve customer service. Start by confirming that you live in a deregulated area and review your current contract details. Decide which plan features matter most, compare offers through impartial marketplaces, and watch out for marketing gimmicks and hidden fees. Spring and fall are generally the best seasons to lock in low rates, but you can shop up to 60 days before your contract expires. When you find the right plan, enrolling takes only minutes; your new provider will manage the transfer so your lights never go out
Check your eligibility and current contract, decide what you want in a plan, compare offers through official marketplaces, select your preferred plan, and enroll. Provide your contact details and start date; your new provider will handle the rest. There is no service interruption, and you will receive confirmation once the switch is complete.
It depends. Switching at the end of your contract is usually worthwhile because renewal rates are often higher than promotional rates. If you find a plan several cents cheaper per kWh, the savings over a year can outweigh an early termination fee. Calculate potential savings, check ETFs and consider whether the new plan’s features match your usage.
The cheapest provider varies by zip code and usage. Enter your zip code to find out.
Electricity rates are lowest during spring and fall. Shopping 60 days before your contract ends lets you secure a good rate while avoiding ETFs. Avoid signing new contracts in the peak of summer (July–August) or mid‑winter (January) when demand-driven price spikes are common. Extreme weather or natural‑gas volatility can still cause price swings, so compare plans regularly and lock in a rate when it aligns with your budget.
No. Switching is a paperless process managed by your new provider. If you have unpaid balances, your current provider may place a switch‑hold until you settle the account.
It depends on your contract. Some providers require you to pay any outstanding balance before switching, while others may allow you to switch and pay later. Your new provider might require a deposit if your credit or payment history is poor.
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