How to Switch Electricity Providers in Texas (Step-by-Step)
5 minute read · Switching providers
Switching electricity providers in Texas is one of the simplest things you can do to lower your monthly bills — and most people put it off for years because they assume it's complicated. It's not. The average switch takes about 5 minutes to complete online and 1–3 business days to take effect. Your lights never go out.
Step 1: Find your current rate
Before you can know whether switching saves you money, you need to know what you're paying now. Grab your most recent electricity bill and find the total cost per kWh at your actual usage level. Don't use the advertised rate — use the total bill divided by total kWh used. This is your true all-in rate.
Step 2: Compare plans for your ZIP code
Enter your ZIP code on Texas Energy Compare to see every available plan in your area. Set the usage filter to match your typical monthly usage (most Texas homes fall between 1,000–1,500 kWh in summer). Sort by rate and look for plans priced meaningfully below what you currently pay.
Step 3: Check your current contract
Look at your current bill or account portal to find your contract end date and any early termination fee (ETF). Texas ETFs typically range from $100 to $300. If you're within 60 days of your contract end, switch immediately — you can avoid the ETF entirely by timing your switch to land on or just after your renewal date.
If you're mid-contract, run the math: multiply your monthly savings by the months remaining, then subtract the ETF. If the number is positive, it's worth switching now.
Step 4: Sign up with your new provider
Once you've picked a plan, click through to the provider's site and complete the enrollment. You'll typically need:
- Your service address and ZIP code
- Your ESIID (the unique meter identifier — found on your current bill)
- Your Social Security number or a deposit (if no credit check option is selected)
- A requested start date
You do not need to call your current provider to cancel. When your new provider submits the switch request to your TDSP, your old provider is automatically notified.
Step 5: Confirm the switch
Your new provider will send a confirmation email with your service start date. You'll receive one final bill from your old provider covering usage up to the switch date, then billing moves to your new provider.
When should you switch?
The best time to switch is 30–60 days before your current contract expires. Set a calendar reminder for 45 days before your renewal date — that gives you enough time to compare plans without being pressured into a last-minute decision or accidentally rolling onto a high-rate month-to-month plan.
Texas has some of the most competitive electricity markets in the country. Switching every 1–2 years when your contract expires is one of the most reliable ways to keep your electricity costs low.