Decision-Making Guides

Switching Providers: What Actually Happens

The single biggest reason Texas homeowners don't switch electricity providers — even when they know they're overpaying — is fear of disruption. The honest answer is: your power doesn't go out, there's no service gap, and it isn't complicated.

5–6 min read

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The most important thing to understand first

When you switch electricity providers in Texas, your physical electricity service does not change. The same wires run to your home. The same utility company — Centerpoint, Oncor, AEP, or TNMP — owns and maintains that infrastructure. If there's an outage you call the same number.

What changes is who you buy your electricity from and what you pay for it. The lights do not flicker. There is no service interruption. There is no technician visit.

Step by step

Step 1: You choose a new plan and provider

You select a plan from a specific REP and agree to the contract terms. Before anything is finalized you should have read and understood the EFL, confirmed your rate, contract term, and ETF, and provided authorization to proceed.

Step 2: The new REP notifies your TDU

Your new REP submits a switch request to your TDU — an automated administrative process. Your current REP is notified of the pending switch.

Step 3: The switch takes effect at your next meter read

In most cases the switch takes effect at your next scheduled meter reading — typically within one to two billing cycles. You finish out the current cycle with your old provider and begin with the new provider at the next meter read.

Step 4: Your meter is read at the switch date

Your TDU records your meter reading on the switch date. This becomes the closing read for your old REP and the opening read for your new REP.

Step 5: You receive a final bill from your old REP

Within one billing cycle, you'll receive a final bill covering the period up to the switch date. If your old contract had an ETF that applied, it will appear on this bill.

Step 6: Your new REP begins billing

Your first bill from your new REP covers the period from the switch date forward at your new contracted rate. Review it carefully to confirm the rate matches your contract terms.

How long does it take?

The typical timeline from signing to the switch taking effect is one to two billing cycles — roughly 30 to 60 days. If your current contract expires on a specific date, sign your new contract at least 30 days before to ensure seamless coverage.

What about my deposit?

Most REPs will either apply your deposit as a credit to your final bill, or refund it within 30 to 60 days after the account closes. Check your original contract terms.

What if I'm moving?

Within the same TDU territory: You can often transfer your existing contract to the new address. Contact your current REP to confirm.

To a different TDU territory: Your existing contract almost certainly doesn't transfer. Many contracts have a move-out ETF waiver — check yours.

Out of a deregulated area: If you're moving to El Paso or parts of the Panhandle, different rules apply and you may not have provider choice.

Common concerns — addressed directly

"Will my power go out during the switch?"

No. The physical electricity supply is continuous.

"Will I get a huge bill right after switching?"

You'll get a final bill from your old REP for the period up to the switch date. Normal prorated bill — not a penalty unless an ETF applies.

"What if the new REP messes up my billing?"

If the first bill doesn't match your contracted rate, contact them immediately and reference your EFL. If unresolved you can file a complaint with the PUCT.

"Can I switch back if I don't like the new provider?"

Yes — with the ETF caveat. If your new contract has an ETF and you switch again before it expires, you'll pay it.

"What happens to my autopay?"

Autopay with your old REP ends when the account closes. Set up autopay with your new REP separately after your first bill arrives.

When switching is straightforward — and when it's not

Straightforward: expired contract or variable rate plan, new contract starting as old one expires, or moving to a new address.

More complicated: mid-contract with a significant ETF, lots of administrative cleanup, or a commercial customer with complex contract terms.

The bottom line

An energy broker costs you nothing, saves you time, and — when you find a good one — gets you a better outcome than you'd likely reach on your own. The "free" isn't a trick. It's just how the market is structured. The only thing worth asking is whether the broker in front of you is actually good at the job.

Ready to see what you should be paying?

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Mike reviews your current rate, shops the market on your behalf, and walks you through your options in plain language. No pressure. Suppliers pay his commission — not you.

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