In Contract

Are you fed up with your power contract? 

Tired of spending hours every weekend building a massive spreadsheet just to compare electricity rates, fees, and bonus options?

You Need A Better Way To Shop!

Everyone’s electricity needs are different, which means that one plan might be better for your neighbor than for you. How can you ever know which choice to make?

Try Power Wizard!

Our service makes it easy. Just enter your zip code and a few details about your power usage, and our unique, unbiased algorithm will scan hundreds of available plans to find you a rate that’s great.

 

This guide will help you to understand what it means to be “in contract” with an electrical company and how to navigate the switch to another provider.

What Does “In Contract” Mean?:

Being “in contract” means that you signed a contract and are still obligated to honor the terms of that agreement.

A contract with a Retail Electric Provider (REP) might mean that they agreed to keep your rate per kWh the same for 12 months, even if the market value of electricity went up.

You, in turn, agreed to pay every month for your electricity usage at that rate for 12 months.

REPs usually have an option in the contract for you to cancel, which typically includes paying a fee.

Even if you haven’t reached the end of your contract, you can still shop around.

Sometimes, paying the cancellation fee makes sense if you can find a much lower rate with another company.

This is where Power Wizard can help.

You can still be in contract with your current company and become a member.

Why would you want to become a member?

• We monitor the market and your current plan
• When a better plan enters the market, we tell you
• The plan might be SO good that it’d make financial sense to switch now.
• Oh, and the best part? Once you’re a member, you will never have to worry about electricity since we…
  • Ensure you don’t roll over to a high variable-rate plan
  • Monitor your plan 24/7
  • Tell you if another better plan for your unique needs is available in your area.

How Can I Know if I’m In Contract with a REP?

When you shop for electricity plans, you typically get a rate quote based on how long of a contract you are going to sign.

For example, if you sign a 12-month contract, you might get a lower rate per kWh than if you only sign a 6-month contract.

There are other incentives that REPs offer for signing longer-term contracts.

Some promotions include a free gift or a gift card. After some time has gone by, you might not know if you’re still under contract with your REP.

Oftentimes, they roll you over into a month-to-month plan at the end of the contracted time.

In this case, you can just reach out to the company and find out if you are still obligated to stay with them or if you will need to pay a fee for canceling the service.

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How Long Does a Contract Last?

Contract lengths vary.

The most common length of time to sign a contract for a specific rate is 12 months. However, REPs offer 6-month, 24-month, and 36-month contracts as well.

Sometimes you can also sign a contract that is month-to-month from the beginning. These contracts don’t usually offer incentives or very low rates since there is no obligation.

Does a Contract Have to Be in Writing?

Yes.

The Retail Electric Company (REP) should have your contract on file.

There needs to be a record of your agreement in order for them to hold you responsible for upholding the terms of the contract.

Do You Want To Get Out Of Your Contract Early and Switch Providers?

If you find that you are still under contract with your REP, but you want to switch, the process is simple.

You can typically just pay the cancellation fee and find another provider.

The hard part is finding the right provider that is going to be better than the one you currently have.

If you’re switching because you feel you’re paying too much for electricity, Power Wizard can help you find a REP with a better plan.

What if you’re currently in contract and aren’t considering switching. It’ll still benefit you to become a Power Wizard Member. Why?

• We monitor the market and your current plan
• When a better plan enters the market, we tell you
• The plan might be SO good that it’d make financial sense to switch now.
• Oh, and the best part? Once you’re a member, you will never have to worry about electricity again since we…
  • Ensure you don’t rollover to a high variable-rate plan
  • Monitor your plan 24/7
  • Tell you if another better plan for your unique needs is available in your area.

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You’re Moving to a Different Home

One of the main reasons people want to get out of their electricity contract is because they are moving into a different home.

Why Would You Want To Get Out of Your Contract If You’re Moving To A Different Home?

If you’re moving to another home, you’re going to have different energy usage.

It’s a good time to re-evaluate the type of rate you’re paying for your electricity.

Square footage and the age of your home will make a big difference in your bill.

There are other factors that might change your usage amounts as well. For example, if you’re moving from a place where you live by yourself into a home with a couple of roommates, your electricity needs will change.

Power Wizard Can Help You Find the Best Electricity Plan for Your New Home

Power Wizard’s technology can find you the very best plan for your individual electricity usage. Based on the square footage and age of your new home, plus data from your zip code, we can find the type of electricity plan that would suit you the best.

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You’re Moving To a Different City In Texas

If you’re moving to a different city in Texas, your current electricity provider may not offer service in your new area.

Different cities in Texas have different laws about electricity, too.

Most cities are deregulated, which means you will have hundreds of plans to choose from. However, some cities in Texas are still regulated, and you will only have one utility company to buy electricity.

Why Would You Want To Get Out of Your Contract If You’re Moving To A Different City?

If your current provider doesn’t provide service in your area, you will need to switch services. This gives you a good opportunity to shop around and make sure you get the best plan available in your new neighborhood. If your new city doesn’t have a deregulated energy market, you will need to switch to the local utility company.

Power Wizard Can Help You Find the Best Electricity Plan for Your New City

Finding out which companies are available in your new city can be daunting. There are hundreds of REPs in Texas, and in order to find the ones available to you, you will need to reach out to each one individually.

Power Wizard’s algorithm can let you know the providers that service your new city right away. We can let you know if your city is deregulated. If so, our system will scan all the providers in the city and make sure you end up with the best rate for your needs.

Your Current REP’s Customer Service is Subpar

If you’ve experienced bad customer service with your current REP, it might be time for a switch. With dozens of REPs competing for your business, you should be able to find a company who offers fast and friendly service.

Why Would You Want To Get Out of Your Contract If Your REP’s Customer Service is Subpar?

You need to be able to trust your electricity provider. If there is an unexpected outage, or you have issues with your bill, customer service should be able to help. If the company doesn’t prioritize customer service, you might be able to find a provider that suits your needs better.

Power Wizard Can Help You Find the Best Electricity Plan with Better Customer Service

Enter your zip code into our Shopping Tool below, and Power Wizard can show you better options for your electricity provider.

Besides receiving better customer service from a different company, we can hopefully find you a better rate plan as well.

Are Electricity Contracts Flexible with Their Terms?

Some contracts may offer more flexibility than others. Some companies have big penalties for cancellation, and others don’t have any fees at all.

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Types of Electricity Contracts

There are many types of electricity contracts, each with its own contract terms and cancellation policies.

1. Variable Rate Contract Cancellation Policy

Variable-rate plans usually have a standard cancellation policy with a flat fee. The fee depends on the company and your agreement with them, but they usually range between $25 – $200.

2. Discount Rate Contract Cancellation Policy

Discount rate plans may have a higher fee for cancellation. This is due to the discount that you’re receiving each month on your rate.

3. Fixed-Rate Contract Cancellation Policy

A fixed-rate plan might have a fee for cancellation that changes based on how much time you have left on your contract. For example, if you have several years left on your agreement, they might charge you a flat fee per year or per month that you are canceling.

4. Rate Cap Contract Cancellation Policy

Rate cap plans offer a rate that changes after a certain amount of electricity has been used. The cancellation policy varies by company.

5. Contract-Free Plans Cancellation Policy

Many electricity plans do not have a cancellation penalty. Prepaid plans and month-to-month plans have no contract requirement. Sometimes month-to-month or prepaid plans will charge you an activation fee when you first sign up, but they don’t penalize you for leaving.

How Can I Know Which Type of Contract is Best?

Without being an energy expert, it can be challenging to know what type of contract is best for your usage and lifestyle. Each individual household has different electricity requirements. With Power Wizard, you don’t have to be an expert. Simply enter your zip code in our Shopping Tool, and we can find the best electricity rate plan for your specific needs.

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What You Should Consider About Being In Contract:

When you sign any type of contract, you should be aware of all the terms you are agreeing to.

Make sure to read the fine print, and read the contract thoroughly.

Some electricity plans have rates that change each month, and you need to be aware of this, so you’re not taken by surprise.

1. Hidden Fees

Depending on the type of contract you have, there could be various hidden fees. It’s important to read the full contract and Terms of Service to ensure you’re fully aware of all possible fees they could charge.

How Does This Affect Me?

Nobody likes having extra charges on their bill. Make sure there are no surprises by going over your contract thoroughly.

2. Cancellation

Depending on your contract, you might incur fees for cancellation. Sometimes, even with a cancellation fee, switching companies still makes sense.

3. What Might Happen When Your Contract Expires

Your REP might do one of two things when your contract term expires. They might:

• Switch you to a month-to-month plan
• Renew your contract for another term

If you get switched to a month-to-month plan, your rate can change.

Think of it this way – if you’re not under contract, neither is the company. So, they are free to up the price at any time.

Many times, electrical companies use this opportunity to try and sell you on a new contract. They may say, if you sign up for another 12 months (right away), we will give you a lower rate or keep your rate the same instead of raising it.

Many people don’t have time to start shopping around for electrical plans at the last minute when their contract expires. So, they usually will re-sign with their current company.

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How Can I Switch Providers When I’m Already In Contract?

Lots of people struggle to understand electricity providers and how to switch if they’re in a contract.

Take Cindy for example.

Cindy was in a rush to get the power turned on in her home when she moved in about 6 months ago.

She quickly found a REP online and signed a 12-month contract without shopping around or giving a lot of thought to her rate.

Cindy quickly realized that she was overpaying for electricity compared to her friends and neighbors in the area, but she had already signed a contract, so she thought she was obligated to her current company.

Cindy still felt like she was in the dark about energy rates and plans, but she knew she wanted to cancel her policy and switch companies.

Luckily, Cindy found Power Wizard. She filled out a few pieces of information in the Shopping Tool and realized that there were much better options out there for her.

Power Wizard’s algorithm even accounts for cancellation fees from your current contract. So, you don’t have to wonder if it’s worthwhile to switch.

Method 1: Research All Available Providers Manually

One way to find the best rate would be to try and research all REPs electricity plans and compare them manually.

How Do I Do That?

In order to compare all the plans, you would need to reach out to every company individually to get rate quotes.

Trying to find the best rate by manually searching through every REPs website can be extremely time-consuming.

There are hundreds of different types of plans and contracts, and it’s almost impossible to know which one would fit your lifestyle and usage the best.

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Method 2: Use Power Wizard’s Unbiased Algorithm

An easier way to shop for electricity is by using Power Wizard. We aren’t a REP. Consider us your personal shopper.

We offer an unbiased algorithm that scans all the electricity plans in your area and finds the one that suits you the best.

How Do I Do That?

Use our Shopping Tool. In under 5 minutes, we can give you better options for electricity plans that match your needs.

Our system takes your zip code and a few other pieces of information about your home, and we match your personal electricity usage to the right company.

What If a Better Option Comes Along?

Power Wizard continues to work for you every month by scanning promotions, rates, and plans for better deals.

If we find a better deal at any time, we will let you know so you can make the switch. We even consider your current contract’s cancellation fees and fine print and take that into account.

You will save hours of time letting Power Wizard do the work for you. We can make the switch seamlessly, even setting up auto bill pay with your new provider.