Energy Options: How to Change Your Electric Provider
In deregulated states, customers can shop for an energy supplier with a plan aligned with their budget and priorities. While this doesn’t impact the delivery of electricity (switching providers does not change your local utility company), it can have a huge impact on energy rates.
Make the Switch
Energy choice empowers consumers to choose their energy supplier, plan and rate. It is great for our customers and allows them to shape their present and future energy market based on their needs and wants. It’s also a lot simpler than it seems. The process is easy and simple, but it does require some research and a bit of work, especially if you are currently in the middle of a contract.
Switching when your current contract is about to expire is recommended to avoid early termination costs and ensure that the new plan you choose is better than the one your provider offered when you first signed up. Switching during the off-season is also better when demand is lower, and rates are cheaper.
Once you’ve selected your new provider, the electric utility will notify your old one of the change, and they will arrange for the switch to take place. Then, your electric supply will be handled by the new company, and you’ll receive a notice from the supplier with a confirmation of your enrollment along with the terms and conditions. You may then begin using your new energy.
Choosing a competitive electric company in Texas does not affect your local public utilities’ reliability or power distribution system. They will continue to focus on delivering your electricity and maintaining the infrastructure.
Get a Price to Compare
It’s worth the effort to shop around for a better electricity deal.
With energy choice, residents can choose their power supplier instead of their local utility. This movement away from centralized utilities has resulted in lower consumer prices thanks to competitive suppliers reaching out with deals that can add to significant savings. The first step is to determine your current rate class.
To do this, enter your ZIP code on the Choose Energy marketplace. It will list your neighborhood’s service providers and their prices. Review the Electricity Facts Label (EFL) when you see a supplier’s offer. You will want to compare the total cost per kWh over the year. It will consider summer/winter highs and lows and the terms, fees, and any discounts.
Consider the length of any contract. It will help you decide whether a short-term offer or longer-term plan is best for you. Also, be aware of any penalties or early termination fees that could apply if you switch providers before your existing contract ends. These are typically associated with fixed-rate plans that require an annual commitment.
Look at Your Current Provider
Thanks to deregulation, consumers in some states can choose their electricity provider. Choosing the right supplier and plan options can save money and align with your environmental goals. But before you make the switch, closely examine your current provider. You’ll want to determine your current electric rates per kilowatt hour and whether they vary by season or time of day.
This information will help you compare apples to apples when considering offers from competing suppliers. Remember that the local utility is still responsible for delivering power and addressing service outages. They also maintain the lines that run to your home or business. Before you switch energy providers, check with your electric utility to see if they have any rules or penalties that may prevent you from doing so.
It’s also a good idea to avoid getting lured in by companies who claim to be from your electric utility but are not. Your local utility would never send you a door-to-door salesperson asking to show you your electricity bill or account number.
If someone does contact you claiming to be from your utility, report them to your electric distribution company immediately. Lastly, be wary of energy companies offering “better service” or offering fewer brownouts. These claims are false. Only your local utility can provide reliable electric service to your home or business.
Get a Quote
With energy choice booming, competitive suppliers are reaching out to customers in your area, offering deals that can add up to significant savings. Typically, these deals include month-to-month options and contracts that provide price protection for an extended period.
By using our search tool and inputting your zip code, you may compare electricity prices in the best possible way. It will display all the competing suppliers that serve your area and their rates. You can easily browse them, looking at the price, term and percentage of renewable energy to find a plan that matches your needs.
Unlike a monopoly utility that regulates power and energy costs, the market that allows retail choice offers competition and transparency in your supply. But even with these advantages, changing your supplier can be a little confusing. To help, our experts have answered some of the most commonly asked questions about energy choice.
Whether you have an existing contract or are starting fresh, making the switch can be done without interruption in service. Your local utility will continue to manage the poles and wires and maintain your electric grid infrastructure. What will change is the company that sets the prices for different rate plans, provides customer service and bills you each month – known as your energy supplier.