How to Switch Electricity Providers in Texas

 

Texas is one of the handfuls of states which has undergone energy deregulation. Deregulation attempts to minimize monopolies on the market of energy providers by allowing an increase in competition. For Texans, it means that you can shop around for the best energy company much the same as you would for an insurance policy. 

 There are many reasons and incentives that electricity providers in Texas use as a means to market their company. Plans range in prices, but also offer items such as price protection, customer service, or freedom of choice. You can determine to purchase on the plan over another based on prices, the term, the customer ratings, and many other options.

 If you find yourself in a position to want to switch providers, here are a few tips you should keep in mind.

 Contract Status

Review your current contract thoroughly to determine whether you are bound to any specific rules concerning switching. Some providers will require you to fulfill a certain term or amount of time with them before you cancel, or else you would incur a cancellation fee. The information is located either on your bill or a contract you signed at the start of your plan.

 The Public Utility Commission states that for most fixed-rate plans, you can switch without paying any fines if you schedule the switch no earlier than 14 days before the current plan you have expires. For any plans which are considered variable-rate as those customers can change at any time. Their plans are on a month to month basis, and no long-term contract is signed.

 Shop Around

Choosing an energy provider can be a laborious and time-consuming process. Shopping around for the right energy provider will give you a full picture of the plans that are available. Some plans provide significant savings during a particular time, such as after a certain hour of the day, mostly at night. Other companies built a rewards system that allows you to earn points for the amount you spend on your electricity and use it somewhere else.

 Make a list and compare the companies based on the items that are the most important to you during the switch. Keep in mind the small details you need to remember such as the incentives they offer, the rate you are likely to pay, and if any deposits are necessary. There are companies that provide no deposit electricity if you find that as one of the most important items.

 Contract

Read any new contracts you are about to sign thoroughly. Take the time to learn the ins and outs of the provider you will be signing with, to ensure that you are genuinely making a beneficial move. This may be a good time to check whether you are signing a fixed-rate contract or variable and which is best for you and your family.

 It’s also a good time to double-check the information that has been quoted to you. Some companies provide a better rate to new clients, but you may not find that completely accurate. Read through any paperwork completely and check the Electricity Facts Label (EFL) to confirm that you are getting the rate you hoped for.

 Grace Period

When you’re preparing to make the switch, leave a grace period between the start of one service and the ending of another. The grace period doesn’t have to belong, not long enough, where you’re paying for two services for too long. It’s only to ensure that should you encounter any problems with your new provider, you do not lose power for that time.

 Switching companies may not be as instantaneous as it sounds. A couple of business days will pass before your electricity is up and running through a new provider, which you need to keep in mind when choosing which day to turn off service through your old provider.

 What Happens Next?

Once you’ve signed on with a new company, you should look for a mailer to come to your home from ERCOT. This mailer will confirm your switch to the new company. It’s also important to note when you receive it since you will still have three business days to change your mind. If you are still sure about making the switch, it will take place on its own within seven business days.

 Your Rights

Remember, as a consumer, you have rights that are enforceable should you find a company using questionable business practices. Do your research on what your rights are when switching companies, or working with your existing company, to know what you should be on the lookout for. The Public Utility Company works to protects your rights, and most of the information you need can be found online. Some of your rights are:

•             Non-discrimination, in any capacity
•             No slamming or camming – the act of switching your provider without your knowledge or  adding optional services without your permission.
•             Dispute resolution
•             Privacy of information

If you’re like many American’s out there, you find yourself looking for ways to cut you’re your utility bills. Switching electricity providers in Texas may sound like a daunting task, but it can be tackled with a little work saving you a nice chunk of change in the long run. With most of Texas deregulated, you have options from month to month plans, long term contracts, and even prepaid electricity.

 All of these options have their own benefits, which you’d need to explore in-depth before making the decision. Your rights to working with a provider of your choice and not being mistreated are managed by the Public Utility Company so that even in the deregulated world, electricity works for you, not the other way around.