Category: Switching

Everything you need to know about switching electricity providers and energy plans in Texas.

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The Hidden Costs Driving Up Your Texas Electricity Bill

When Diane, a hard-working single mom from Houston, opened her electricity bill, she was stunned. Her monthly statement had skyrocketed from $120 to an eye-watering $185 – and she had no idea why. Diane felt frustrated, confused, and worried about how this unexpected expense would impact her tight budget.

Unfortunately, her story is all too common in Texas. Countless residents pay “holdover rates” without even realizing it. In this article, we’ll explain holdover rates, why they exist, and—most importantly—how to protect yourself from falling victim to this costly trap.

What Are Holdover Rates?

In the Texas electricity market, a holdover rate is a variable rate that your Retail Electricity Provider (REP) automatically applies to your account when your fixed-rate contract ends and you are in electricity limbo (i.e., between contracts).

These rates are inextricably tied to the real-time market price of electricity, which can fluctuate wildly and soar during high demand.

While holdover rates are legal, many Texans find this practice misleading and unfair, taking advantage of their busy lives and limited time.

Read: Texas Electricity Contract Expiration Guide →

Retail Electricity Providers

In the Lone Star State, power generators are paid for their electricity in an energy-only market. You (the consumer) don’t purchase electricity directly from power generators. Instead, you rely on a Retail Electricity Provider as an intermediary.

Your REP is tasked with forecasting demand and purchasing the right amount of electricity in advance, often through fixed-rate contracts, to meet projected needs. When your fixed-rate contract with your REP expires, and you haven’t chosen a new plan, you may unknowingly be placed on a holdover rate.

Read: How Electricity Contract Renewals Work in Texas →

The Holdover Rate Trap

For REPs, holdover rates safeguard against the uncertainty of not knowing how much electricity to purchase for customers whose contracts have expired. By switching these customers to a variable rate, REPs can adjust their purchases based on actual consumption, minimizing their risk of buying too much or too little power.

However, this risk-mitigation strategy comes at a steep cost for consumers, who are left exposed to the volatile whims of the real-time electricity market.

Your Electricity Plan

If you’ve ever been shocked by a sudden spike in your Texas electricity bill, you might be one of the many Texans who have been switched to a “holdover rate” without realizing it.

So, how can you tell if you’re on a holdover rate? Start by scrutinizing your latest electricity bill or logging into your REP’s online portal. Look for terms like “variable rate” or “month-to-month” in your plan details. Also, look for the contract expiration date. If your contract has expired, you’re likely on a holdover rate.

Read: How to Switch Electricity Companies in Texas

Avoiding Holdover Rates

The good news is that you can take control of your electricity costs and avoid falling victim to holdover rates. To protect yourself from the financial burdens of holdover rates, start by marking your contract expiration date on your calendar and setting a reminder to begin shopping for a new plan at least a month in advance.

Better yet. Schedule a reminder now, and we’ll email you when it’s time to shop.

As your contract nears its end, dedicate time to researching and comparing plans from various REPs. Utilizing comparison tools, like those offered by ComparePower, can help you find the most competitive plan based on your unique usage patterns.

In Texas, you can switch electricity providers without incurring early termination fees within 14 days of your contract expiration date. 

Texas Administrative Code, Title 16, Part II, Chapter 25, Subchapter R, §25.475

Make your switch within this window to avoid being rolled onto a costly holdover rate. Repeat this process annually to ensure you always secure a competitive electric rate for your home.

Stuck in a contract? Schedule a reminder, and we’ll help you find a better plan before your contract expires.

How ComparePower Helps

We empower you (the Texas energy consumer) with the tools and information to make informed decisions and avoid costly pitfalls like holdover rates. ComparePower gives you access to:

  • Transparent pricing information: We offer all-inclusive pricing and break down the costs of each plan, including hidden fees and discounts, so that you can make apples-to-apples comparisons.
  • Personalized recommendations: Live Link™ analyzes your unique usage data to identify the plans that will save you the most money based on your electricity consumption.
  • Unbiased advice: As an independent marketplace, we’re not beholden to any particular electricity company. Our sole focus is helping you find the best plan for your needs and budget.
  • Step-by-step guidance: Our friendly Texas-based customer service team will walk you through the switching process and ensure a seamless transition to your new plan.
  • Reminders when it’s time to switch: ComparePower will remind you to switch plans at the right time.
Eric Eldridge

Easy to use, helped me choose the right power plan for me.

Eric Eldridge

Say Goodbye to Holdover Rates

After reading about the shocking truth behind holdover rates and how to avoid them, you may wonder how to choose the best electricity provider in Texas.

Switching electricity providers is one of the easiest ways to save money on your energy bills in Texas. Don’t let holdover rates drain your wallet for another month. Start comparing plans today and take control of your energy costs with ComparePower.

Take Control of Your Energy Costs

The following article will guide you through selecting the best provider and plan for your home. You’ll learn:

  • The role of retail electricity providers and how they differ from utility companies
  • Why price should be the primary factor in choosing a provider
  • How to calculate the true cost of an electricity plan based on your usage
  • The difference between fixed-rate and variable-rate plans
  • How to use ComparePower’s tools to compare plans and find the best deal

With this knowledge, you can confidently shop for a new electricity plan and take control of your energy costs.

Read: How to Choose the Cheapest Electricity Provider in Texas →

Don’t spend another month overpaying for electricity. Take control of your energy costs today by comparing plans and making the switch with ComparePower.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Save On Texas Electricity with Your Usage

Your electricity usage history can save you hundreds of dollars annually on your Texas energy bills.

Live Link™ automates this process, instantly retrieving and analyzing your data to find the best-fitting plans.

Try Live Link Now

Why Your Usage History Matters

Imagine buying groceries without knowing how much your family typically eats.

You’d likely overspend or end up short. The same principle applies to electricity plans.

Without understanding your usage patterns, you’re essentially shopping in the dark.

Your kWh usage history reveals:

  • Seasonal fluctuations in your energy consumption
  • Peak usage months
  • Your average monthly consumption

Without this data, you risk overpaying or facing unexpectedly high bills.

How Live Link™ Works

Live Link™ eliminates the need to collect and analyze your usage data manually.

  • Automatically retrieves your historical usage
  • Analyzes consumption patterns
  • Compares plans based on your actual usage
  • Calculates estimated bills for each plan option

Automated Usage Retrieval

Gathering your usage history traditionally meant sifting through old bills or navigating clunky utility websites.

This tedious process often deterred consumers from making informed decisions.

Enter Live Link™, a groundbreaking tool that’s revolutionizing how Texans shop for electricity.

This innovative tool automatically retrieves your historical usage data, eliminating the hassle of manual collection and ensuring pinpoint accuracy.

Find your best electricity plan in minutes. Use Live Link Now

Effective Plan Comparison

When comparing plans with Live Link™, consider the following:

  • Total cost based on your usage, not just advertised rates
  • Plan structure (fixed-rate, variable, tiered)
  • Contract terms
  • Hidden fees

Compare Personalized Plans with Live Link

Switching Providers: Your Path to Savings

Many Texans hesitate to switch electricity providers, fearing it’s complicated or won’t yield significant savings.

However, switching can often lead to substantial cost reductions—if done right.

This is where Live Link™ shines. It’s explicitly designed for Texans looking to switch providers and save money. Here’s how:

  • Precise Comparisons: Live Link™ uses your actual usage data to calculate potential savings with different providers, ensuring accuracy.
  • Timing is Everything: It alerts you when your contract is nearing expiration—the perfect time to switch without incurring fees.
  • Eliminates Guesswork: No more estimating your usage or falling for misleading advertised rates. Live Link™ shows you precisely what you’d pay based on your consumption patterns.
  • Reveals Hidden Savings: It might uncover that a plan with a higher per-kWh rate saves you money due to your specific usage pattern.
  • Streamlines the Process: Once you’ve chosen a new plan, Live Link™ simplifies the switching process, making it nearly effortless.

Remember, the Texas electricity market is dynamic. A plan that was best for you last year might not be the most economical choice now. You could save hundreds annually by leveraging Live Link™ to switch providers strategically.

Ready to Switch and Save? Try Live Link Now

Moving to a New Home

If you’re new to an address:

Estimate Your Home kWh Usage

Business Customers

While Live Link™ isn’t available for businesses yet, energy advisors can analyze your usage patterns and industry-specific needs.

Shop Business Electricity

Understanding and leveraging your kWh usage is the ultimate step in getting unscrewed. It’s how you move from feeling confused and overcharged to being an informed, savvy energy consumer.

Frequently Asked Questions

Live Link™ retrieves your actual historical usage data directly from your utility company, ensuring high accuracy. This is the same data used for billing purposes.

If you’re moving, Live Link™ can’t retrieve usage for the new address. However, you can use our kWh Calculator to estimate usage and choose a plan with a satisfaction guarantee. After accumulating 12 months of data at your new address, you can return to shop with Live Link™ for more accurate comparisons.

Currently, Live Link™ is not available for business customers. However, our business representatives can assist you in acquiring or estimating your usage data and finding the best plan for your commercial needs.

We recommend using Live Link™ at least annually or when your current contract is nearing expiration. Energy rates in Texas can change frequently, so regular checks ensure you’re always on the most cost-effective plan.

Yes, we employ industry-standard encryption and security protocols to protect your data. We do not sell or share your personal information with third parties.

Live Link™ can work with a partial usage history. However, the more data available, the more accurate the comparisons will be. If you have less than a year of data, consider seasonal variations.

Yes, Live Link™ not only retrieves your data but also analyzes it to show patterns such as seasonal fluctuations and peak usage periods. This insight helps you choose the most suitable plan structure for your needs.

Get Unscrewed

The Texas electricity market is dynamic. Taking control of your energy costs can lead to significant savings.

Review your usage and compare plans annually using Live Link™ to ensure you’re always on the most cost-effective energy plan.

Remember:

  • Your usage history is the key to unlocking substantial savings
  • Live Link™ makes accessing and analyzing this data effortless
  • Regular comparisons ensure you’re always on the most cost-effective plan

The Texas energy market is complex, but you don’t have to navigate it alone. Live Link™ is your guide to finding a plan that fits your energy habits and budget.

Join our mission to Unscrew Texas and take control of your energy costs.

Start Saving with Live Link Today

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Stay Ahead of Rising Prices

Hey there, energy-savvy Texan! Are you wondering when is the best time to switch electricity providers in Texas?

Timing is key to maximizing your savings and avoiding potential price hikes.

In this guide, we’ll explore factors you should consider to help you stay one step ahead of rising prices.

TLDR: The best time to switch electricity providers in Texas depends on various factors, including contract expiration, promotions, usage patterns, and life changes.

Timing your switch to anticipate price increases, particularly before the summer or winter season, can help you secure a better rate.

Stay informed about market trends, carefully review plan details, and switch providers before your contract expires to maximize your savings.

The Best Time to Switch

The best time to switch electric providers in Texas depends on your specific situation and goals. Here are a few factors to consider:

  1. Contract Expiration: If your current contract is nearing its expiration date, it’s a good time to explore your options and compare electricity plans from different providers. This allows you to take advantage of potential savings and benefits offered by other providers.
  2. Rate Comparison: Regularly comparing electricity rates is a smart practice. Keep an eye on the market and compare the rates offered by various providers. If you find a plan with a significantly lower rate or better terms than your current provider, it might be a favorable time to make the switch.
  3. Promotions and Special Offers: Keep an eye out for promotions and special offers from electricity providers. They often introduce competitive rates or additional perks to attract new customers. When you come across a compelling offer that aligns with your needs, it could be an opportune moment to switch providers.
  4. Change in Usage Patterns: If your energy usage has significantly changed, such as an increase or decrease in consumption, it’s worth considering switching providers. Some providers offer plans tailored to different usage patterns, so finding a plan that aligns with your current energy needs can help optimize your savings.
  5. Life Changes or Moving: Life events such as moving to a new home or a change in personal circumstances can be an ideal time to evaluate your electricity provider options. Take advantage of these moments to review your energy needs and seek out providers that offer plans suitable for your new situation.

Anticipating Price Increases

Timing your switch to anticipate price increases is crucial to securing a better rate. Keep an eye on news and rumors about possible electricity price hikes.

As the summer or winter season approaches, there’s often speculation and buzz surrounding potential increases.

Energy experts and industry insiders may start forecasting higher prices based on factors such as increased demand, fuel costs, or regulatory changes.

By monitoring these indicators, you can gain valuable insights into when prices are likely to rise, signaling the ideal time to switch providers.

Lower Prices in Shoulder Months

Traditionally, the summer and winter periods are characterized by heightened electricity usage due to air conditioning and heating demands.

As a result, energy prices tend to be higher during these peak-demand seasons. Therefore, switching providers just before these periods can be a strategic move to secure a more favorable rate.

By switching during the shoulder months leading up to summer or winter, you can take advantage of lower prices before they surge with increased energy consumption.

Frequently Asked Questions

What time of year is electricity cheapest in Texas?

Electricity demand is lowest in the spring and fall, so electricity usually costs less during these seasons. 

Electricity market rates are higher in the summer and winter when people use more electricity for air conditioning and heat.

Rates also go down at night and on weekends, with the lowest rates occurring on Sunday morning between 7 a.m. and 10 a.m. Off-peak electricity hours in Texas typically fall between 10 p.m. and 6 a.m. 

This is when electricity demand is at its lowest, so utilities can offer cheaper rates to encourage customers to use power during these times.

You can also consider switching Texas electricity providers between December and March/April.

Can I switch electric providers before my contract expires?

Yes, you can switch providers before your contract expires. However, keep in mind that there may be an early termination fee. In Texas, you have up to 14 days prior to your contract expiration date to switch providers without being assessed an early termination fee.

How far in advance can I schedule electric service in Texas?

Most providers offer the option to sign up at a preferred rate and schedule service to begin in 30, 60, or 90 days, but this may vary by provider.

What if I enroll in an odd-number contract like 3 or 9 months?

Enrolling in odd number contracts like 3 or 9 months may seem tempting due to their low rates.

However, it’s important to note that these plans may place your future switch date on a month when electricity demand is high and prices are typically higher.

To avoid potential price spikes, it’s generally recommended to switch providers just before the summer or winter period when prices are more likely to increase.

It’s Your Turn to Save

Remember, at ComparePower, we’re here to help you navigate the electricity market and find the best plan for your needs and budget.

Explore our website, compare rates, and take control of your energy future. Start saving today!

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Why wait? Lock in a Favorable Rate Today

Hey there, energy-savvy Texan! Are you wondering if you can lock in a favorable electricity rate for a future start date?

Planning ahead can be a smart move when it comes to your electricity service.

By starting or switching your electric service in advance, you have the opportunity to lock in a favorable rate before prices potentially change.

How far in advance can I schedule electric service in Texas?

Most providers offer the option to sign up at a preferred rate and schedule service to begin in 30, 60, or 90 days, but this may vary by provider.

Enrollment Timeframe by Electric Company

Check out the enrollment timeframes of popular providers in Texas.

Electric CompanyDays Out
4Change Energy*45 days
TXU Energy*90 days
Amigo Energy*60 days
Tara Energy*60 days
Just Energy*60 days
Cirro Energy*60 days
Discount Power*60 days
Green Mountain Energy*60 days
Reliant*60 days
Direct Energy*60 days
Frontier Utilities*90 days
Gexa Energy*90 days
Constellation*60 days
Payless Power*60 days
Pulse Power60 days
New Power Texas60 days
Flagship Power60 days
Please note that these timeframes are subject to change and may not encompass holidays or weekends.

*Providers with an asterisk offer service on Saturdays.

Frequently Asked Questions

Why schedule electricity service in advance?

This proactive approach allows you to secure a competitive rate and enjoy long-term savings.

Whether you’re moving to a new home or considering a switch from your current provider, taking action ahead of time can help you take control of your energy costs and ensure you’re getting the best deal possible.

So, don’t wait until the last minute – start or switch your electric service in advance to lock in a favorable rate and enjoy peace of mind.

Can I sign up for electric service before my current contract expires?

Yes, you can sign up for electric service before your current contract expires.

However, it’s important to note that if you switch providers prior to the 14-day window before your contract expiration date, you may be subject to an early termination fee.

Review the terms of your current contract to understand any potential fees or penalties involved.

When is the best time to switch electricity providers in Texas?

The best time to switch electricity providers in Texas depends on various factors, including contract expiration, promotions, usage patterns, and life changes.

Timing your switch to anticipate price increases, particularly before the summer or winter season, can help you secure a better rate.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

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 Electric Rates & Save👇

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.

You can avoid an early termination charge if you switch providers no earlier than 14 days before your contract expiration date. However, if you switch before this period, you may have to pay an early termination fee.

When choosing a new provider, consider factors such as the rates they offer, the terms of their contracts, their customer service reputation, and whether their plans fit your energy usage habits.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

TLDR: Maximize winter energy savings by using your home’s historical kWh usage to find the best energy plan. Comparing energy plans with your electricity usage can lead to lower energy bills and more informed decision-making. Learning energy-saving tips and regularly reviewing your plan can also help reduce costs.

Maximizing winter energy savings

Winter months can bring great joy with the festive season, but they can also be harsh on your wallet due to increased energy consumption. Heating homes and offices can consume a lot of energy and significantly increases energy bills. With energy prices constantly fluctuating, finding an energy plan that fits your usage and budget is more important than ever. This is where your historical kWh usage comes in.

Understanding historical kWh usage

A kilowatt-hour is a unit of energy used to measure electricity consumption. Your historical kWh usage data records how much energy you have consumed over a specific period, typically one year. This data lets you find the perfect energy plan by comparing energy plans according to how you use electricity.

To access your historical kWh usage data, check your monthly energy bills or log into your energy provider’s account dashboard. Understanding this data is important in finding an energy plan that fits your usage and reduces energy bills.

How to use historical kWh usage to find the perfect energy plan

Comparing Texas electricity rates based on your historical kWh usage is easy. Start by collecting your historical kWh usage data monthly for one year. Enter your usage history on ComparePower’s historical usage calculator. Compare plan prices based on your historical kWh usage.

Comparing energy plans with your historical kWh ensures that you select a plan that fits your consumption pattern, reduces energy bills, and helps you make an informed decision based on your actual usage rather than just an estimated average.

Check out this short 2-minute video to learn how shopping with your usage works on ComparePower.

What length plan should I choose?

A common question we get when switching is the term length of the contract.

Is it best to choose a 12, 24, or 36-month plan? The length of your energy plan depends on your individual needs and preferences.

A 12-month plan offers stability, predictability, and the flexibility to shop again in 12 months.

A 24-month plan provides a longer period of stability in energy rates, but you may miss out on lower energy bills if rates go down.

A 36-month plan offers the longest period of rate stability. This term is ideal if you find a rate you like and prefer to lock that in for an extended period.

It can be difficult to predict electricity prices as supply and demand, fuel prices, government regulations, and weather conditions influence them. The energy market is highly dynamic and constantly changes, making it challenging to predict future prices accurately.

Ultimately, assessing your energy needs and considering the current market rates is best before deciding on a plan length. You may also want to consider the plan’s flexibility and the penalty fees for early termination.

When can I switch providers?

While you can switch electricity plans at any time, it is important to note that some providers may charge an early termination fee (ETF) if you end your contract before the end of the term.

The ETF is designed to compensate the provider for any losses they may incur from ending the contract early.

Before switching plans, be sure to review the terms and conditions of your current contract and consider the ETF fees involved.

In some cases, the potential savings from switching to a new plan may outweigh the ETF fees, so it’s important to do the math and weigh your options carefully. You can quickly do the math with ComparePower by plugging in your kWh usage and letting us crunch the numbers for you.

It is also worth noting that some providers may offer ETF-free plans, so be sure to consider all your options and choose the plan that best meets your needs and budget.

Starting service for a new home

If you don’t have access to the previous usage history for your new home, you can estimate your electricity usage. You can also ask the previous landlord for a copy of their kWh usage history for 12 months.

Tips to maximize savings this winter

Aside from finding the perfect energy plan, several other tips can help you maximize your energy savings this winter.

First, familiarize yourself with the different types of energy plans and rates available. There are fixed-rate, variable-rate, and prepaid plans, each with advantages and disadvantages.

Conserving energy and reducing usage during winter is another way to reduce energy bills. Simple changes, such as lowering your thermostat, sealing drafty windows, and using energy-efficient lighting, can help you save electricity.

Finally, it’s important to regularly review and adjust your energy plan to ensure you are always getting the best deal.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

If you’re reading this, your electricity provider in Texas likely went out of business, and you are now with another provider known as a Provider of Last Resort or POLR.

Here is what you need to know to make an informed energy decision for your household.

POLR transitions usually default to variable market rates, also called holdover rates.

Your Provider of Last Resort could honor your previous rate with your former electric company, but that is not guaranteed. Check the details of your new contract to find out exactly what you are paying.

In most cases, you are paying the Provider of Last Resort an expensive holdover rate.

Holdover rates are subject to changes in market conditions and are significantly higher than those for a fixed-rate contract.

Switch providers on ComparePower to a fixed-rate plan that will be easier to budget and cheaper than a holdover rate.

Get a fixed-rate contract with a low rate in minutes.

What is a Provider of Last Resort, or POLR?

POLR service, or Provider of Last Resort, is a safety net for you when your preferred retail electric provider (REP) cannot maintain service. 

Instead of utilities providing backup electric service to customers, the POLR structure requires competitive REPs to fill the service gap if any REP exits the market.

This temporary service should be used only in exceptional circumstances, such as when a REP goes out of business.

The Public Utility Commission of Texas (PUC) appoints certified REPs to provide POLR service in each service region every two years.

Large REPs must participate as POLRs, and smaller providers may volunteer.

Find a low rate and switch energy providers instantly.

What are my options if my electric provider goes out of business?

Getting dumped to a POLR is not ideal. There’s no getting around that, but you can now find a great new rate for your home.

You do not have to stay with your provider of last resort. You can choose your provider on ComparePower.

Shop with your usage, compare pricing for your home, and checkout with the right plan in as little as five minutes.

We’ll show you all-inclusive pricing, so you know exactly what your bills will look like.

Find plans that match your needs and avoid all the gimmicks that providers throw at you.

Will my power go out?

There is no interruption of power during a POLR transition. If you are in good standing, which means you’ve paid your electricity bills on time, your utility company will continue to deliver power to your home.

When do you get POLR electric service?

Retail energy is a high-risk commodity business, and REPs must purchase electricity ahead of time to support electricity demand.

If a REP has not purchased enough electricity to serve their customers, they are forced to purchase real-time electricity to meet their customer’s needs.

And if the Electricity Reliability Council of Texas (ERCOT) views the upcoming market prices as risky, they may demand more collateral from your REP to cover the costs.

If your REP cannot cover the costs of real-time electricity or put up enough collateral, they can quickly go out of business, and you’ll be placed on a POLR plan.

This is precisely what happened after Winter Storm Uri when demand skyrocketed, and real-time electricity prices hit all-time highs.

Who is your Provider of Last Resort?

The PUCT determines the Texas POLR list and updates it every two years.

The largest providers are required to serve as a POLR, and smaller providers may choose to take part to share the burden.

Current POLR providers are listed below by delivery area:

– Oncor: TXU Energy
– Centerpoint: Reliant Energy
– TNMP: TXU Energy
– AEP: TXU Energy

How does POLR electric service work?

If you end up on a POLR plan, don’t worry. The POLR system was implemented to keep your lights on so you won’t be stuck in the dark.

The first thing that will happen is that you’ll be notified that your electricity service has been transferred to a POLR.

You’ll receive a notice from the PUCT letting you know that your REP is no longer servicing your home, and soon your POLR will send information about the plan you are being placed on.

Your contract with your former REP will be terminated, and your contract details will likely not be carried over.

Any payment or billing arrangements on your old electricity plans, such as average billing or Auto Pay, are also terminated.

The new POLR plan you are placed on will be month-to-month with no contract and will have a variable rate.

This means that the cost of your electricity will change each month and can be extremely expensive.

If you are hearing warning bells going off, you are right to assume that you don’t want to stay on a POLR plan for long.

The good news is that you can shop for a new electricity plan without any penalties.

When you’re transferred to a POLR, you have 15 days to switch to another plan with that POLR, or you can shop to find the best rate for your home.

Don’t wait. Switch providers here in as little as 5 minutes and enjoy savings on your energy bill month after month.

Search for a low electricity rate and enroll online in minutes.

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Electricity Renewal Offers in Texas

Are you considering an electricity contract renewal offer and wondering if switching providers can save you money?

You’re not alone. Many Texans face this same decision every year.

Here’s the good news: We’ve covered everything you need to know about electricity contract renewals in Texas, plus how to switch providers effortlessly if needed.

TL;DR: This guide simplifies electricity contract renewals in Texas. With ComparePower, you can easily understand your contract’s end date, identify the best time for renewal, and switch providers.

Is It Time to Switch Electricity Companies?

When your electricity contract is nearing its end, you’re faced with a key decision: stick with your current provider or explore other options. It’s a good idea to evaluate the service you’ve received, your current plan’s cost, and whether better deals are available.

It might be time to switch if you’re unhappy with your service or find a better rate elsewhere.

Understanding Your Electricity Contract End Date

Texas Electricity Providers are required to notify you when your contract is about to expire.

Don’t ignore this notice—doing nothing could result in being automatically switched to a holdover rate (a variable rate), which is usually more expensive.

Unsure about your contract end date? Check your account online or call your provider.

Knowing this date allows you to explore new plans and secure better rates before it’s too late.

When is the Best Time to Renew Electricity Contracts?

The best time to renew or switch your electricity contract is typically up to 14 days before your current plan ends.

This window lets you lock in a new rate without any rush.

Keep in mind that electricity rates fluctuate based on demand.

Generally, rates are lower in spring and fall when demand is low, which is a great time to shop for new plans.

How to Compare Renewal Offers

The easiest way to get an accurate renewal offer is to use Live Link™, which connects directly to your actual electricity usage data.

This allows you to compare plans based on how much energy your household really consumes without any guesswork.

Digging through old bills or logging into your provider’s dashboard is unnecessary.

Live Link™ pulls your usage history directly, showing you side-by-side comparisons of how much you would pay with different plans.

If you prefer to estimate manually, you can still use tools like our electricity usage calculator (below), but for the most accurate and personalized comparison, Live Link™ is your best option.

Electricity Usage Calculator

Are you not ready to decide yet? Set a reminder here so you can revisit this page closer to your contract expiration and compare your options when you’re ready.

Why ComparePower?

ComparePower helps simplify the process of navigating the Texas electricity market.

On one platform, you can easily compare rates, contract lengths, and customer reviews from various providers.

This makes finding a plan that aligns with your usage and preferences much more manageable.

Flexible Plan Options

Whether you’re looking for a 12-month, 24-month, or no-contract electricity plan, we have plenty of options.

  • No-contract plans offer flexibility, letting you switch providers whenever you find a better deal.
  • 12-month plans offer stability in your energy costs for a full year.
  • 24-month plans provide long-term stability for those who prefer locking in rates for an extended period.

Making the Switch

Switching electricity providers is straightforward and hassle-free.

Once you choose a new plan, your new provider will handle the switch.

There’s no interruption in your service; you don’t need to contact your previous provider.

Ready to Take Control?

Don’t let your electricity contract renewal catch you off guard.

Start shopping for new plans as soon as you receive your renewal notice.

Whether you find a better deal or want to stay with your current provider, you’ll be in control of your energy costs.

Next Steps

  • Enter your zip code: Get rates tailored to your area.
  • Compare plans: Review detailed information on contract length, rates, and fees.
  • Pick your plan: Sign up online once you find the best option.
  • Start saving: Enjoy peace of mind knowing you’ve made the best decision for your home.

Ready to save time and money on your electricity bill?

Frequently Asked Questions

Texas has no single electricity provider known for the most competitive rates. In Texas, the price of your energy depends on how much energy you use each month. Shop electricity plans with your home’s annual usage profile to find a low rate and avoid gimmicks. Enter your home’s historical usage on ComparePower.com, and you’ll be on your way to savings in minutes.

In general, the cheapest times of the year for electricity are during the spring and fall months when there is less demand for electricity. Do not let your contract expire before switching providers. Doing so can be costly. ComparePower.com can help you find the best rate with your home’s annual usage profile. It is the best way to shop for electricity in Texas if saving time and money is essential.

Texans paid an average of 12.56 cents per kilowatt-hour in 2021. You can find rates on ComparePower that are much less than the Texas average when you shop with your home’s historical usage profile. The best way to shop energy plans and save money is by using your historical usage profile on ComparePower.com

In Texas, you have 14 days before your contract expiration date to shop the market and switch to a new provider without penalty.

Yes, ensure you’re within your 14-day grace period to avoid any early termination penalties. Then, enroll for electricity service with a new provider on ComparePower.com, and we’ll handle the break-up call for you.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Lower Your High Electricity Bill in Texas

Are you tired of sky-high electricity bills? We’ll help you cut costs and keep more money in your pocket.

For the past 15+ years, Texans have asked us for guidance on understanding their electricity bills and finding ways to save.

Along the way, we’ve gained valuable insights into the most common reasons behind high bills and the most effective strategies and tools for lowering them.

The Bottom Line: Slash high bills by identifying energy hogs, improving efficiency, and comparing rates to find a better plan. We make it easy to find the best rates and switch providers in just a few clicks. Take control of your electricity costs today.

See How Your Electricity Rate Compares to the Best Deals in Your Area

Are you curious how your current electricity rate stacks up against the competition?

We’ve made it incredibly simple to determine if you’re overpaying on your electricity bills and how much you could save by switching plans.

Compare Your Current Bill to Market Rates in 30 Seconds

  1. Locate your most recent electricity bill and find the following information:
    • Your total monthly charges
    • Your electricity rate (price per kWh)
    • Your monthly kWh usage
  2. Enter your zip code below for your area’s most competitive, up-to-date electricity rates.
  3. Compare the rates and total charges of the plans displayed to your current bill.
    • If the rates shown are lower than your current rate, you may be overpaying for electricity.
    • If the total charges for your usage are lower than your current bill, switching plans could save you money.

Sample Electricity Bill

Sample Electricity Bill
Sample bill showing the Average Rate, Monthly kWh Usage, and Total Monthly Charges

How It Works

It’s simple – enter the kWh usage from your bill for a straightforward comparison of your potential savings.

Lower high electricity bills in Texas
Lower high electricity bills in Texas

Take Control of Your Electricity Costs

By comparing your current bill to the most competitive rates in your area, you can confidently determine if switching plans could lower your monthly expenses.

Don’t leave money on the table – enter your zip code now and see how much you could save on your electricity bills.

Check Your Savings Potential

Please note: If you are currently under a contract with your electricity provider, switching plans before your contract expires may result in an early termination fee. Review your contract terms carefully before making any changes to your service.

Causes of High Electric Bills

You’re not alone if you’re shocked by a high electricity bill. Many Texans experience bill spikes, especially during extreme weather months.

There are two leading causes of high electricity bills:

Increased Usage Due to Weather

  • Your heating and cooling systems work harder to maintain a comfortable indoor temperature during the hottest and coldest months.
    • This increased usage can cause your energy consumption to surge by 20% or more compared to milder months, leading to higher bills.

Expired Contracts and Holdover Rates

  • Some fixed-rate electricity contracts have terms designed to expire during high-usage months.
  • If you don’t take action to renew or switch plans when your contract ends, your provider will automatically move you to a “holdover” variable rate plan.
  • These holdover rates can be significantly higher than fixed rates, often leading to bills that double overnight.

In addition to these two primary factors, several other issues can contribute to high electric bills:

  • Aging, inefficient appliances that consume more energy
  • Inadequate insulation and air leaks lead to energy waste
  • Lifestyle changes, such as spending more time at home or adding new energy-consuming devices
  • Inaccurate billing or meter issues
  • Wasteful habits, like leaving lights on or setting the thermostat too low
  • Lack of regular HVAC maintenance, causing systems to work less efficiently

Understanding the causes behind your high bill is the first step toward finding a solution.

You can take targeted actions to reduce energy consumption and lower your bills by identifying the main culprits.

We can help you find better rate plans tailored to your specific usage patterns, ensuring you’re not overpaying for electricity.

Enter your zip code below to compare rates and find the best plan for your needs.

Get Rates Near You

Strategies to Lower Your High Electric Bill

The causes behind most electricity bill spikes can be narrowed down to two key factors: increased usage and expired contracts.

Manage Your Usage During Extreme Weather Months

  • During the hottest and coldest months, increased usage of heating and cooling systems can cause energy costs to skyrocket, often more than 20% higher than in milder months.
  • Implement strategic tweaks to reduce your energy consumption:
    • Adjust your thermostat slightly higher in summer and lower in winter to trim 15% or more from your heating and cooling costs each billing cycle.
    • Use ceiling fans to circulate conditioned air more efficiently.
    • Close blinds and curtains during the hottest parts of the day in summer and open them to let in natural heat during winter.

Be Proactive About Contract Expirations

  • Some fixed-rate electricity contracts have terms designed to expire during high-usage months.
  • Suppose you don’t renew or switch plans when your contract ends. In that case, your provider will automatically move you to a “holdover” variable-rate plan, leading to unpredictable rate hikes and bills that double overnight.
  • Protect yourself against these price spikes by locking in a new fixed-rate contract before your term expires.

Compare Rates and Switch Providers

  • If your contract expires soon or has recently expired, enter your zip code below to see how much you can save based on the lowest rates available for your home.
  • Use ComparePower’s user-friendly platform to compare rates from multiple providers and switch to a more affordable plan that fits your usage patterns.

Implement Energy Efficiency Measures

  • Replace old appliances with ENERGY STAR-certified models to reduce energy consumption.
  • Improve your home’s insulation and seal air leaks to minimize energy waste.
  • To reduce lighting costs, switch to smart lighting solutions, such as LEDs, dimmers, and motion sensors.

Adopt Energy-Saving Habits

  • Turn off lights and electronics when not in use.
  • Use smart power strips to eliminate standby power consumption.
  • Maximize the use of natural light and ventilation when possible.
  • Use Smart Meter Texas to monitor your usage and adjust consumption.

Understanding the causes of high electric bills and implementing these strategies can significantly reduce your electricity costs regardless of the time of year.

Switch Electricity Providers in 5 Easy Steps

If you haven’t switched providers in a while or your contract has expired, switching to a new provider with a lower rate can be the quickest way to save on your electricity bill.

Follow these five simple steps to switch providers and potentially lower your electricity costs:

  1. Enter your zip code
  2. Review your usage history
  3. Compare available plans on ComparePower
  4. Select a new plan that best fits your needs
  5. Complete the switch online in just 5 minutes

Switching providers won’t cause any service interruptions.

Learn how in this 2-minute video ⤵️

Dmarc

Quick and helpful. I was paying too much for my electricity they cut my bill in half!

Dmarc

ComparePower: Your Trusted Electricity Ally

We make comparing rates and switching electricity providers easy, helping you save money on your bills. Our user-friendly platform simplifies the process.

Take control of your electricity costs today:

  • Determine your usage requirements
  • Compare rates and switch to a better plan
  • Implement energy-saving tips and strategies

We’re dedicated to providing straightforward answers, helpful resources, and genuine support to help you manage your electricity bills effectively.

Begin your savings journey with ComparePower today. Compare rates and switch providers in just minutes.

Compare Rates & Start Saving on Your Bills

Next: Shop with Your kWh Usage & Save

Comparing electricity rates based on your home’s specific kWh usage can help you save money on your Texas electricity bill.

Assistance Paying Your Electricity Bill

If you’re struggling to pay your electricity bill in Texas, help is available. Explore our comprehensive guide on assistance programs, including Senate Bill 1976, Lifeline, Link-Up, and the Weatherization Assistance Program.

Discover eligibility requirements, application processes, and valuable tips to secure the support you need. Don’t face your utility challenges alone – learn how to access these vital resources and regain control of your energy expenses.

High Electric Bill FAQs

Looking for more ways to lower your electricity bill? Check out these frequently asked questions.

How can I reduce my electric bill?

The most effective way to reduce your electricity bill is to find a plan that best matches your home’s usage profile. By entering your historical usage data, you can quickly find the ideal plan for your needs.

What is a typical electric bill in Texas?

According to the U.S. Energy Information Administration, the average retail price of residential electricity in Texas is 14.61 ¢/kWh. The typical Texan uses an average of 1,132 kWh per month; at 14.61 ¢/kWh, the average electric bill would be approximately $165.04.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. Compare Power is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

What is a switch hold?

A switch hold is put in place by a retail electric provider (REP) to prevent customers from switching companies before paying their bills or if they detect your meter has been tampered with.

You can remove a switch hold by paying any outstanding bills or submitting a New Occupant Statement (NOS) if you just moved in.

Navigating the Switch Hold Process

Are you in Texas, considering switching your electricity provider, but a switch hold is standing in your way?

Many Texans are in this predicament, unsure how to navigate the switch-hold process. But don’t worry. We’ve got you covered.

We’ll demystify the switchhold process and provide you with all the information you need to make a smooth transition.

Understanding the Switch Hold Conundrum

A switch hold is implemented by REPs in Texas to prevent customers from switching to another provider before settling their past-due bills.

It safeguards electricity companies, ensuring customers fulfill their financial obligations.

But what does this mean for you, and how can you navigate it?

How do you get a switch hold?

A switch hold prevents attempts to switch providers. If you cannot pay your electricity bill, your electric company may offer a deferred payment plan, enabling you to pay the outstanding balance in installments.

When you enter these agreements, the electric company can impose a switch hold on your meter to prevent you from changing providers to evade the due balance.

A switch hold may also be placed if your utility company detects meter tampering at your location.

Interfering with your Transmission and Distribution Utility meter is illegal and can result in a switch hold being applied.

Are You Facing a Switch Hold in Texas?

If a switch hold is placed on your address, you have a few different ways to deal with it.

Can I switch electricity companies with a switch hold? 

You can switch electricity providers in Texas even if you have an outstanding balance, provided no switch hold is already in place.

If you already have a switch hold, you need to work with the electricity company to pay off your outstanding balance before the switch hold is removed.

Once it is removed, you can switch companies.

If your electricity is disconnected due to non-payment, contact your current provider and request a payment plan to pay off the outstanding balance gradually.

By agreeing to a payment plan, you acknowledge that a switch hold will be placed on your service address.

Do not enter a payment agreement with your electric company to avoid a switch hold. Instead, try to pay your bill in full if possible.

How to get electric service with a switch hold?

Lifting a switch hold requires settling any outstanding balance with your electricity company. After paying the balance in full, removing the switch hold may take up to 72 hours.

If your service has been disconnected due to non-payment, you must settle your outstanding balance with your current provider to restore your electricity.

Can I get prepaid electricity with a switch hold?

No, you cannot get prepaid electricity with a switch hold. A switch hold is typically implemented by the current electricity provider to restrict customers from switching to a new provider until certain conditions are met, such as clearing any outstanding balance or resolving specific issues.

As long as the switch hold is in place, you will not be able to enroll in a prepaid electricity plan. It is necessary to resolve the hold with your current provider before exploring prepaid electricity options.

What if I am a new occupant facing a switch hold?

You can have it removed by reaching out to the electricity company you want to establish services with and completing a New Occupant Statement (NOS).

The NOS must be accompanied by at least one of the following supporting documents:
– A copy of the signed lease
– A notarized affidavit from the landlord
– Closing documents
– Certificate of Occupancy; or
– A utility bill in the customer’s name, dated within the last two months, from a different address

Assistance Paying Your Energy Bill

If you find yourself struggling to manage your energy bills there are supportive programs available to lend you a hand.

Check out the Low Income Home Energy Assistance Program (LIHEAP) at acf.hhs.gov, a federal program that aids families in need with their energy costs. Or, visit benefits.gov to navigate various government benefits that might suit your specific situation.

Switch to Savings

If you’re ready to switch electricity providers in Texas, ComparePower is here to help.

Don’t let a switch hold stand in your way. Take action today.

Ready to switch electric companies?

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