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Electricity Contract Expiration Guide
Imagine your A/C humming along on a scorching Texas day…then your electricity bill arrives and knocks the wind out of you.
An expired contract and a holdover rate could be the culprits. These rates can double your electricity costs overnight.
So, if you’re feeling anxious because your electricity contract in Texas is about to expire, you’re not alone.
Many Texans are in the same situation, unsure of the next steps and worried about potential cost increases.
But what if I told you this could be a golden opportunity for savings?
TLDR: This article is your guide to managing your electricity contract expiration in Texas. I’ll explain why you should consider switching providers, how ComparePower can assist you in the process, and why you should start comparing providers today. By following this guide, you can navigate your contract expiration smoothly and potentially save money on your electricity bill.
Understanding Your Electricity Contract Expiration
In Texas, Retail Electric Providers (REPs) must notify you at least 30 days before your contract expires.
This gives you time to review their renewal offer, compare other options, and decide whether switching providers could benefit you.
However, the process can seem daunting and confusing, especially if you’re worried about early termination charges or finding a new provider that fits your needs.
What Happens if I Don’t Switch Providers?
If you stick with your current provider out of convenience or fear of change, you might pay more than necessary.
When you’re nearing the end of your electricity contract in Texas and haven’t chosen a new plan or provider, there’s no need to worry about your power being shut off.
Instead, your current provider will typically place you on what’s known as a “holdover” rate.
The Most Expensive Way to Get Electricity
A holdover rate is a variable rate your provider will charge you once your contract expires and until you sign a new contract or switch providers.
This rate can be higher than what you paid under your contract, as it often reflects current market conditions.
While being on a holdover rate ensures your electricity service continues uninterrupted, it’s usually a good idea to shop for a new contract or provider as soon as possible.
Because holdover rates change monthly, your bill becomes a rollercoaster, destroying your budget.
This is because holdover rates can be more expensive and change from month to month, making your electricity bill unpredictable.
The stress of fluctuating bills isn’t just about money; it adds a layer of anxiety to everyday life.
Switching to Savings on ComparePower
Comparing providers and plans can seem time-consuming and complex, adding to your stress, but don’t worry.
This is where ComparePower comes in. Here you can compare rates and plans from different providers in one place.
We provide clear and detailed information about each plan, helping you make an informed decision with confidence and ease.
When is the best time to switch electricity providers in Texas?
You can switch providers without incurring an early termination charge if the switch is no earlier than 14 days before the contract expiration date provided in the notice.
If you switch before this period, you may have to pay an early termination fee.
What happens to my electricity service when I switch providers?
If you switch providers, your electricity service will continue uninterrupted.
Your new provider will start supplying your electricity once your current contract ends.
Ready to get started? We’ve prepared a comprehensive guide on how to switch energy companies for you. It’s your roadmap to a smooth and hassle-free switch.
Compare and Switch Today
Don’t let your contract expiration date catch you off guard. Compare electricity providers today with ComparePower, and switch to savings.
Remember, the power to choose is in your hands. Make the most of it with ComparePower.
Call us at 855-441-3030 Monday through Friday, 8:30 a.m. to 6:30 p.m., or Saturday, 9:00 a.m. to 4:30 p.m.
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