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How to Switch Your Electricity Company in Houston

Written By: Jesse Shaver

Last Updated: 11/13/2023

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With more than 120 retail electric providers in and around the Houston area, it’s no wonder that the competition is so fierce. The top provider with the best plan today might be at the bottom of the totem pole tomorrow. As such, it’s common practice in Houston for people to switch from one electricity company to another.

However, while it’s certainly possible to save money when you switch electricity companies, it isn’t the right decision for everyone. You’re just as likely to lose money during the switch as you are to save it if you aren’t careful. This article will explain how that can happen, the factors to consider, and how to switch your electric company in Houston.

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Texas
Best Electricity Rates
ProviderPlan NameLengthRate Per kWh
At 1000kWh avg. usage
Sign Up
Discount Power
PUCT# 10177
Bill Credit Bundle 24
24 Mo.11.9¢Select
Cirro
PUCT #10177
Simple Bill Credit 24
24 Mo.12.1¢Select
4Change Energy
PUCT #10041
Maxx Saver Select 24
24 Mo.12.3¢Select
Constellation
PUCT #10014
12Mo Usage Bill Credit + A/C Protection
12 Mo.15.9¢Select
Rhythm
PUCT# 10279
Simply Select 24
24 Mo.16.1¢Select
PlanRate Per kWh
At 1000kWh avg. usage
Discount Power
Bill Credit Bundle 24

24 Months
11.9¢
Select
Cirro
Simple Bill Credit 24

24 Months
12.1¢
Select
4Change Energy
Maxx Saver Select 24

24 Months
12.3¢
Select
Constellation
12Mo Usage Bill Credit + A/C Protection

12 Months
15.9¢
Select
Rhythm
Simply Select 24

24 Months
16.1¢
Select
  • 100% Renewable Sources
  • A/C Protection Included
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Can I Switch Electric Companies in Houston?

First things first, you can absolutely switch electric companies in Houston if you’re tired of your current plan. Houston is home to a deregulated electricity market, meaning it’s a free market system. In other words, the government doesn’t decide who the electricity companies are, their rates, or who you must pick as your provider.

Therefore, in the same way that anyone can form a company and buy and sell electricity, all residents of Houston have the power to choose their provider. So, if you are fed up with your current contract or it has ended, you have the right to switch providers.

When is the Right Time to Switch Electricity Companies?

Contrary to what you might think, there’s actually a right time and a wrong time to switch electricity companies. For instance, most electricity companies have early termination fees built into their contracts. These fees are designed to penalize people for prematurely opting out of their contracts by making them pay a fee. Therefore, if your contract has massive early termination fees, you’ll want to wait to switch until the end of the contract.

The time of year is another factor to consider when switching electricity plans. You see, electricity rates are lower at certain times of the year than at others. In general, the spring and fall months have the lowest rates because people use the least electricity at those times. So, if you can wait to start a new plan until spring or fall, you’ll be able to find the best rates.

Signs You Should Switch Houston Electric Companies

For some Texans, there are obvious signs that it’s time to switch electric companies in Houston. However, the signs are harder to see for others, especially if you’ve been with the same company for a long time. Therefore, here are a few warning signs that indicate it’s high time to switch providers.

Unexpected Price Hikes

One of the main reasons that people get fed up with their electricity provider is because of unexpected price hikes. Unexpected hikes can happen because you signed up on a promotional deal with a great rate in the short term or because of economic changes.

Regardless of why they happen, price hikes can wreak havoc on your budget and result in unexpected spending. As such, unexpected price hikes are a good sign that it’s time to switch electricity providers.

Bad Customer Service

One of the primary things that separates good electricity companies from bad ones is their customer service. Power outages, plan changes, and questions are very common regarding electricity in Houston, and most of these issues get directed to customer service.

Customer service is essential for having a positive experience with your power company. At ElectricityRates.com, we only direct you to companies that have excellent customer service ratings. You can rest assured that your REP will be there to assist you. Check out our Best Texas Electricity Providers page to see who we rank from best to worst.

Changes in Usage Needs

It’s also possible that your living situation has changed, resulting in changes in your electricity usage. Because most electricity plans in Houston are based on usage patterns, your usage is extremely important to consider. For instance, if you currently have a plan designed with lower rates based on using 1,000 kWh, but number of people in your household gets bigger, you may need to switch to a plan where the rates at 2,000 kWh are lower.

You Want a Different Type of Plan

There’s also a chance that you want a different type of electricity plan. In Houston, you have the option of fixed-rate, variable-rate, prepaid, and flat-rate electricity plans. If you’re currently enrolled in one and need to switch to another, you will likely have to switch companies since most REPs only offer one type of plan.

How Early Termination Fees Impact Switching Houston Electricity Plans

As we said before, early termination fees are a significant factor to consider when switching electricity plans. While each company can set up its own ETFs, most of them are enforced on a monthly basis. For example, when you cancel, most REPs will charge $50 per month for every month remaining on your contract.

So, if you cancel your contract with four months remaining, your early termination fee will be $200. Therefore, if you’re enrolled in a contract with this type of ETF system, you should wait as long as possible to cancel your plan to minimize your early termination fees.

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How to Switch Electric Company in Houston the Right Way

While you can switch electricity providers manually, it takes a ton of work and time. Manually researching and changing plans can take several days, and there’s a chance you won’t choose the right plan. If you want to avoid this possibility, let us help you switch electricity companies in Houston. Here’s how the process works.

  • Enter your ZIP Code into the free rate comparison tool at the top of the page.
  • Scroll through the customized and optimized list of plans we display according to your needs and preferences.
  • Once you find the plan you like, you can select it and enroll immediately.
  • There won’t be any service interruptions while we switch you from your old plan to the new one.

It really is that simple! When comparing and choosing the top energy companies in Houston, ElectricityRates.com is the way to do it.

ElectricityRates.com Houston, TX Location

  • Address: 4201 Main St Suite 200, Houston, TX 77002
  • Phone: (832) 476-8721