5 Tips Before Switching Providers Amid Texan Energy Crisis

In 2023, Texas’ power source was tested again by the blistering heat wave with triple-digit temperatures this 2023. Last June, around 300,000 customers in the states and other southern states suffered from power interruptions. It was so damaging that one person died due to these prolonged blackouts.

On a positive note, Texas is one of the deregulated states allowing the switching of power providers. It helps consumers save a lot of money. Homeowners can also use solar leasing programs, prepaid energy options, market-indexed prices, and time-of-use rates.

To make the most of these initiatives, here are some tips to know before switching:

Check Your Eligibility

As mentioned, Texas gives residential consumers the power to choose the best energy provider. They can switch without early termination charges as long as they do so no earlier than 14 days before the contract expiration date indicated in the notice.

Even consumers who still owe money can switch providers. They just have to pay a deposit with a new company. If they currently lack funds, consumers can easily access alternative financing, such as installment loans online. Moreover, they may have a switch hold on their account if they’ve entered a payment arrangement with their provider.

However, other cities remained regulated. While it was mandatory for all investor-owned utilities, deregulation in Texas was optional for non-profit organizations, such as municipal utilities and electric cooperatives. Many of these non-profits opted not to participate.

Here are the following cities that aren’t deregulated in Texas:

• North Texas - Denton, Garland, Georgetown, Greenville, New Braunfels

• Central Texas - Austin, Burnet, Kerrville, San Marcos

• East-Central Texas - Bryan, Brenham, College Station

• South Texas - Brownsville, Cuero

• South-Central Texas - Fredericksburg, San Antonio

Hence, check whether your city can switch to another electric company. The list above may be updated at the time of reading, so it’s recommended to cross-check the information online or with a professional when you’re about to switch to another electric company.

Check Your Current Contract

Ensure to make informed decisions before changing to another electrical company. Once you check your eligibility, reread your contract and be aware of all the fees you need to pay when making the switch.

Note that canceling an energy deal may come with some penalties, especially if you’re on a fixed-rate tariff. Such charges include exit fees. Check them first on your contract with your existing company before switching to another.

Here are the most common information and fees you need to know:

1. current provider’s name

2. rate per kilowatt-hour (kWh)

3. usage fees or monthly charges

4. early termination fees (ETFs)

Sometimes, you can’t find the term “rate per kilowatt-hour (kWh)” on a bill. However, it must be there, so check other terms like “Supply Charges,” “Generation Charges,” or “Energy Charges.”

Shop Around

Compare offers from different energy companies. Don’t forget to enter your ZIP code to ensure you’re following the current rates available in your area. Filter information by plans, rates, and contract length to help you narrow your options.

Take advantage of the incentives offered by these companies as well. They usually provide bundled plans, time-of-use discounts, and rebate card programs, which can help you save a lot of money.

Opt for Energy Supplier over Utility

Choose what kind of company you want as well. Note that in the energy market, there’s always an electric utility (owns and operates transmission lines into a house or business) and an energy supplier or provider (sets the energy rate or the cost per kWh and contract term).

Many consumers thought they were the same, but in a deregulated state like Texas, they represent two different energy sector models. Between the two, choosing energy suppliers or providers is better in most situations.

They entered the competitive energy market to remove the monopoly that utilities once had over the energy sector. Specifically, energy providers offer consumers better deals—environmentally friendly and money-saving—that were never available on the energy front before to compete against utility companies.

Additionally, energy providers offer greater pricing stability despite the volatility in the energy market. They allow consumers to lock in the same rate for the duration of their plans. In other words, you’ll be billed at the same rate as the day you signed the contract, even if energy costs increase due to unforeseen events in the market. In contrast, utility companies usually offer variable-rate plans, which are prone to price hikes.

Use Quote Generator

You may use a quote generator if you’re still torn between switching to a better company that gives a consistent energy supply or staying with your current one to avoid fees. It helps you to understand which option is cost-effective.

Final Thoughts

Texas is the biggest power user in the United States. It’s also one of the states that keep facing electricity problems despite the nation being a developed country. The good news is that the state keeps finding better solutions to solve yearly outages, making its energy market more competitive.