Your electricity company is betting you won’t read this article.
They’re counting on inertia, confusion, and the assumption that switching is complicated. It’s not. Switching electricity providers in Texas takes 15 minutes, costs nothing, and requires zero technician visits. Your power never goes out. The whole process happens behind the scenes while you go about your day.
So why do so many Texans stay with overpriced providers? Because the industry has spent 20 years making it seem harder than it is. They’ve buried information in fine print. They’ve made comparing plans deliberately confusing. They’ve designed contracts to trap you into auto-renewals at terrible rates.
Here’s the truth about switching, what they don’t want you to know, and the specific mistakes that cost Texans hundreds of dollars every year.
The Dirty Secret About Switching
Here’s what the electricity industry doesn’t advertise: switching providers is trivially easy because you’re not actually changing anything physical.
Texas deregulated electricity in 2002. That means the company that delivers power (your utility like Oncor or CenterPoint) is completely separate from the company that sells it to you (your retail provider like TXU or Reliant).
When you switch providers, the poles and wires don’t change. Your utility still maintains the grid, reads your meter, and handles outages. The only thing that changes is which company sends your bill and at what rate. For more on how utilities work, see our guide on understanding TDU charges.
This is why switching causes zero service interruption. The infrastructure is identical. The electrons are identical. You’re just changing who gets paid and how much.
What You Need Before You Start
Gather these before you begin:
From your current electricity bill:
- Your ESI ID (Electric Service Identifier) — a unique 17 or 22-digit number identifying your address
- Your current provider’s name
- Your account number
- Your average monthly usage (in kWh)
Your ESI ID is not your meter number. The ESI ID identifies your service location. Your meter number identifies the physical meter device. Most bills list your ESI ID near your account number. Can’t find it? Use an ESI ID lookup tool with your address.
Personal information:
- Full legal name
- Service address
- Contact phone number and email
- Social Security Number (for credit check, if required)
That’s it. No account numbers from your new provider. No special forms. Just the basics.
The 5-Step Switching Process
Step 1: Check Your Contract End Date
Before anything else, find out when your current contract ends. This single date determines whether switching will cost you money.
Where to look:
- Your most recent bill (providers must notify you 30-60 days before contract expiration)
- Your provider’s online account portal
- Your original contract documents
- Call customer service
Why it matters: Leave a fixed-rate contract early and you’ll pay an Early Termination Fee (ETF). These range from $50-150 flat fees to $15-20 per remaining month. On a 24-month contract with 16 months remaining at $15/month, that’s $240 out of pocket.
The 14-day window: Texas law requires providers to let you switch penalty-free during the last 14 days of your contract. This is your target.
If you’re moving: Good news. Texas law waives all ETFs when you’re switching addresses. You’re free to leave anytime with no penalty.
Step 2: Compare Available Plans
Don’t just grab the lowest advertised rate. That number rarely tells the full story.
Use comparison tools:
- Compare plans on ComparePower
- Look at the Electricity Facts Label (EFL) for every plan
- Calculate your actual cost based on your usage
What to watch for:
- Base charges and fees that aren’t in the advertised rate
- Usage thresholds — some plans spike if you use too much or too little
- Contract length (align this with favorable rate seasons)
- Early termination fees on the new plan
Match plans to your usage: A plan optimized for 2,000 kWh per month will cost more if you use 1,000 kWh. Check your past bills and find your average monthly usage. Pick a plan that gives you the best rate at that level.
For help deciding between providers, check our provider comparisons to see how companies stack up on service quality, not just price.
Step 3: Review the Terms Before You Sign
You’re about to sign a contract. Read it.
Check these specifics:
- Total average cost per kWh at your usage level (not the teaser rate)
- Monthly base charges or customer fees
- Early termination fee amount and structure
- Contract length
- What happens when your contract ends (auto-renewal terms)
- Whether there are bill credits and what triggers them
Red flags:
- Plans with rates that vary dramatically based on usage levels
- Contracts that auto-renew at substantially higher rates
- Fees buried in fine print
If anything is unclear, call the provider before signing. Once you’re in, changing your mind can cost money.
Step 4: Sign Up With Your New Provider
Once you’ve found the right plan, enrollment takes about 10 minutes.
The signup process:
- Go to the provider’s website or call them directly
- Enter your service address and ESI ID
- Select your plan and contract length
- Choose your start date
- Provide personal information (name, contact details, SSN for credit check)
- Review terms and sign electronically
Choose your switch date carefully:
- If you’re in your 14-day ETF-free window, schedule within that period
- If you’re moving, set the date for your move-in day
- For standard switches, pick your next meter read date if possible
Credit checks and deposits: Most providers run a credit check. If your credit is below their threshold, you’ll pay a deposit (typically $100-300). Some providers like Gexa Energy offer no-deposit options or will waive deposits with autopay.
You don’t need to contact your old provider. Your new provider handles everything, including notifying your current company. In fact, calling your old provider to cancel early can trigger unnecessary fees.
Step 5: Wait for the Switch (Nothing Happens)
Seriously. You’ll notice nothing.
Timeline:
- Standard switches: 7-10 days from your meter read date
- Same-day service: Some providers offer this if you sign up before their cutoff time (usually noon)
- Scheduled switches: Your chosen date, typically within 7 business days
What actually happens:
- Your new provider notifies your utility (Oncor, CenterPoint, etc.)
- The utility updates their records
- At midnight on your switch date, billing transfers to your new provider
- Your power stays on the entire time
Your utility doesn’t change. If you have Oncor now, you’ll still have Oncor after. They maintain the infrastructure regardless of who you buy power from.
Your first bill: Expect a final bill from your old provider (prorated to your switch date) and your first bill from your new provider within 2-4 weeks.
Timeline: How Long Does Switching Actually Take?
From decision to switch:
- 15 minutes: Time to compare plans and sign up online
- 7-10 days: Average time until switch completes
- 0 seconds: Time your power is out
Exceptions:
- Moving to a new address: Can take 2-4 weeks if a new meter needs installation
- Same-day service: Available from many providers if you enroll before noon
- Scheduled future switches: You can lock in a rate 30-90 days in advance
The process is faster than most people expect. The longest part is waiting for your meter read cycle, not any technical switching process.
Common Mistakes That Cost Money
1. Canceling Your Old Provider First
Don’t call your current provider to cancel. Let your new provider handle it. If you cancel first, you could:
- Get hit with a “vacant service fee”
- Create a gap in service
- Trigger early termination fees unnecessarily
Your new provider notifies your old provider automatically. That’s how the system works.
2. Ignoring Early Termination Fees
One of the most common complaints on provider reviews: “I didn’t know I’d be charged $200 to switch.”
Before you switch mid-contract, calculate:
- Remaining months × your per-month ETF rate
- Or the flat fee (usually $100-150)
- Compare that cost to potential savings
Sometimes paying the ETF makes sense. Often it doesn’t. Do the math before you commit.
3. Choosing Plans Based Only on Advertised Rates
That “7.9 cents per kWh” plan? It’s probably 7.9 cents only at exactly 2,000 kWh usage. Use 1,500 kWh and you might pay 12 cents. Use 2,500 kWh and you might pay 11 cents.
Always look at:
- Your actual usage level (check past bills)
- The EFL’s rate chart at different usage levels
- Monthly base charges
- One-time signup fees
The cheapest advertised rate is rarely the cheapest actual bill.
4. Not Reading the Electricity Facts Label
The EFL is a standardized document showing exactly what you’ll pay. It includes:
- Rates at 500, 1000, and 2000 kWh usage levels
- All fees and charges
- Contract terms
- Renewable energy percentage
Spend 3 minutes reading it. It’ll save you from surprises later. For a deep dive, check out our Electricity Facts Label guide.
5. Switching During Peak Summer
If your contract ends in July, you’re shopping when rates are highest. Providers know demand is up and competition is lower.
What to do if your contract ends in summer:
- Start shopping 30 days early to catch any early deals
- Consider a shorter contract (6-12 months) to shift your next renewal to winter
- Compare aggressively—rates vary more in summer than winter
Better yet, plan ahead when signing contracts. Choose lengths that put your renewal in October-February when rates are lowest.
6. Forgetting About Outstanding Balances
Owe money to your current provider? They can place a “switch hold” on your account, blocking you from switching until you pay.
Before switching:
- Check for any past-due amounts
- Set up a payment plan if needed
- Confirm there are no disputes on your account
Once your balance is clear, the switch can proceed normally.
7. Assuming You’re in a Deregulated Area
Not every part of Texas can choose providers. Cities like Austin, San Antonio, and El Paso have municipal utilities. Residents can’t shop around.
Check if you’re in a choice area:
- If your utility is Oncor, CenterPoint, AEP Texas, or TNMP, you can choose
- If your utility is Austin Energy, CPS Energy, or El Paso Electric, you cannot
- About 85% of Texas has choice. The other 15% doesn’t.
8. Not Setting Calendar Reminders
You’ll forget your contract end date. Everyone does.
What happens if you forget:
- You auto-renew at whatever rate your provider offers (rarely the best available)
- Or you get moved to month-to-month rates (typically 2-3x higher than contract rates)
Learn more about avoiding this trap in our guide on what happens when your electricity contract expires.
Set two reminders:
- 60 days before contract end: Start watching rates
- 30 days before: Begin shopping seriously
Future you will thank present you.
What Happens to Your Power During the Switch?
Nothing. Your lights stay on. Your AC keeps running. You won’t notice anything physically changing.
Why there’s no outage: The physical grid infrastructure (poles, wires, transformers) is owned and maintained by your utility, not your retail provider. When you switch providers, you’re only changing who bills you for electricity. The utility continues delivering power exactly as before.
No technician visits needed. No new equipment installed. No interruption to service. The switch happens at the billing level, not the infrastructure level.
What about smart meters? If you have a smart meter (most of Texas does), the switch is even simpler. The utility remotely updates your account. If you have an analog meter, someone might come read it, but your power stays on during that process.
FAQs About Switching
Can I switch providers anytime? Yes, but you might pay an early termination fee if you’re in a fixed-rate contract. The penalty-free window is the last 14 days of your contract.
How much does it cost to switch? Switching itself is free. Your new provider doesn’t charge you to sign up (unless there’s a deposit). The only cost is a potential ETF if you’re leaving a contract early.
Will my power go out during the switch? No. Zero service interruption. Your utility continues delivering power throughout the process.
Do I need to call my current provider? No. Your new provider handles all communication with your old provider. In fact, calling to cancel yourself can trigger unnecessary complications.
What if I’m moving? Texas law waives all ETFs when you move. You can switch providers at your new address with no penalty. Just sign up with a new provider using your new address and ESI ID.
Can I keep the same plan at a new address? Not usually. Each address has a unique ESI ID. You’ll need to sign up for a new plan at your new address, even if you want the same provider.
How do I find my ESI ID? Check your current electricity bill—it’s usually near your account number. If you can’t find it, use an online ESI ID lookup tool with your address.
What happens to my autopay? It transfers to your new provider. You’ll need to set up autopay with the new company. Your old autopay will stop automatically.
Can I switch if I have bad credit? Yes, but you’ll likely need to pay a deposit ($100-300 typically). Some providers offer no-deposit plans or prepaid options that don’t require credit checks. Check out our guide to best providers for no deposit for options.
When to Switch vs. When to Wait
Switch now if:
- You’re in your 14-day penalty-free window
- You’re moving to a new address (ETFs are waived)
- Your contract ended and you’re on month-to-month rates
- You found a plan that saves enough to offset the ETF
- It’s winter (October-February) and rates are low
Wait if:
- Your current contract has more than 6 months remaining and you’d pay a large ETF
- You’re locked into a legitimately good rate (compare to current market)
- It’s summer and you’re not at contract end (better rates come in fall)
- You’ll be moving in the next 2-3 months (wait and switch when you move)
Not sure? Do the math. Calculate your total cost (current plan + ETF) versus the total cost of switching (new plan savings × months remaining). If switching saves more than $100 over the remaining contract period, it’s usually worth it.
Next Steps: Ready to Switch?
The actual switching process is simple. The hard part is finding the right plan at the right price for your specific usage.
Your action plan:
- Find your current contract end date (check your bill or account portal)
- Set calendar reminders for 30 and 14 days before that date
- Calculate your average monthly usage from past bills
- Compare plans at your usage level
- Read the EFL for any plan you’re considering
- Sign up and let your new provider handle everything
Want more context before you switch? Check our provider comparisons to see how companies stack up on customer service, not just rates. Or browse our best providers by category to find companies that fit your specific needs.
Switching electricity providers in Texas takes 15 minutes and costs nothing if you time it right. There’s no reason to stay with a provider charging you more than you should pay.
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