It can seem challenging to find a solution to rocketing energy bills. But don’t worry, there’s something quick and easy that most people in Texas can do: One of the best ways to save money on your utility bills is to switch power suppliers. And many Texas residents have that power at their fingertips.
At Amigo Energy, we want to offer people an alternative to high energy bills. This guide covers our specialty: electricity for residential properties. We will also explain how and why Texas residents should look to switch energy companies and also when it’s best not to make a switch.
Please note: We won’t cover commercial customers or natural gas.
Can I Change Electricity Suppliers in Texas?
It’s relatively straightforward to change electricity suppliers in Texas. Around 85% of Texans have the power to choose which company supplies their electric service.
The reason people can elect their electricity provider is thanks to Texas’s deregulated energy market, which the state has enjoyed since 2002. People living in deregulated areas have energy choices — that’s to say, they can shop around for the best energy prices.
Electricity bills can rise for many reasons, from a change in lifestyle to more people living at home to buying an electric car. If you’ve recently moved, that’s a great time to look at a possible new energy supplier. Those residing in deregulated market areas can shop around to find an energy plan that suits them best as their circumstances change.
Imagine free electricity at night or helping to reduce carbon emissions by choosing renewable energy — these are just two of the possibilities available to Texans. In short, both homeowners and tenants in Texas don’t have to settle for high energy costs. There are plenty of competitive suppliers waiting with more affordable electricity prices, as well as other incentives like renewable energy packages and time-of-use contracts.
What Is an Electric Supplier, Exactly?
In Texas, households in deregulated areas can choose which company they buy their electricity from. These businesses go by many names: electric companies, energy suppliers, or energy providers. The legal name for this kind of business is a retail electric provider (REP), and its role is to sell electricity to consumers via agreed contracts.
These businesses make money by buying and selling electricity through the open market to make a profit. Customers benefit by switching power suppliers, who offer electricity at different rates. There are more than 130 REPs in Texas. Amigo Energy is an example of a REP.
Where does this electricity come from? Further along the grid, electricity producers generate the electric supply at power plants or renewable energy centers like wind farms.
And how does electricity make it to your home? Utilities transport the electricity over poles and power lines to homes and businesses. Utility companies are known as Transmission and Distribution Service Providers or Electric Distribution Utilities.
What Does It Mean, Switching Electricity Suppliers?
Switching your electricity supplier means changing the company to whom you pay your electricity bill.
For example, a Texas homeowner might initially get their electricity from Tara Energy. However, after doing some research, the homeowner might find a deal with Just Energy that they like more. As a result, they switch their electricity supply from Tara Energy to Just Energy.
Is It Easy to Change Electricity Suppliers?
Thanks to deregulation, there are many roads you can take when it comes to your electricity. Fortunately, it’s simple for eligible residents to change electricity suppliers in Texas. Apart from different prices and a new company name on their bill, people who switch power suppliers won’t notice any difference in their power supply.
You can usually change your electric suppliers with a couple of phone calls or even via the companies’ websites. It can even happen on the same day if all your paperwork and payments are in order, albeit it may take up to seven days to complete the switch.
What if I Don’t Live In a Texas Deregulated Electricity Area?
People who live in areas without deregulation receive electricity from a local utility approved by the Public Utility Commission of Texas (PUCT). Unfortunately, these residents can’t take advantage of Texas’ deregulated market, which means they can’t choose to switch their power supplier.
Is It Worth Changing Electricity Suppliers?
We believe your electricity bill should suit your wallet. As your life changes, your energy needs change, too. There are many reasons you may wish to change your electricity supplier, and these include:
- Starting a family may mean more energy usage during daytime hours, which is usually the most expensive time to use electricity.
- You might be moving to a bigger or smaller home with different energy needs.
- Rising electricity prices may mean your utility bill has increased, or maybe a company has started applying unwanted fees to your account — also known as cramming.
- Your existing contract has come to an end.
- You’ve received poor customer service or often find yourself complaining about your electricity company.
- Your meter readings are incorrect, so your electricity bills are often wrong.
- You’ve been a victim of slamming, where an unscrupulous company switches you to a new contract without your authorization or knowledge.
- You’d like to add renewable energy to your supply, but your existing company doesn’t offer the possibility.
Consumers don’t have to put up with shoddy service or high bills. Deregulation brings choices that can help people save money. Note that changing electricity suppliers probably won’t prevent outages.
How Do I Compare Electricity Providers?
There are three main ways to compare Texas electric companies.
First, you can look at each company’s website and read about their plans. Second, price comparison websites show a variety of offers — though not all of them.
Finally, the most reliable place to research electricity companies is provided by the Public Utility Commission of Texas (PUCT). The PUCT has set up the PowertoChoose.org website to bring options to anyone with an internet connection.
Pro tip: Check out our PowertoChoose.org guide to help you navigate the website. Find out if your home is in a deregulated area by entering your ZIP code into the site’s search tool.
Should I Choose Fixed Rate or Variable Rate Electricity?
Electric companies charge for electricity in kilowatt-hours (kWh). Use the kWh price to compare advertised prices.
There are three kinds of electricity plans to choose from, and your lifestyle and circumstances will determine which is best for you.
- Fixed-rate plans keep the same kWh price throughout the contract term, so customers know the amount they’ll pay per kWh will stay the same.
- Variable-rate plans mean the kWh price fluctuates according to the market. Electricity rates, and therefore electricity bills, can go up and down.
- Indexed rate plans operate similarly to variable rate deals, with changing kWh prices linked to a publicly available index.
Fixed-rate deals tend to have higher kilowatt-hour prices but offer stability. Variable-rate plans often have low starting prices, but these can change during the contract, going up as well as down.
Remember: It’s your choice, and the power is in your hands. You can save money on electricity bills by understanding them and then looking at and comparing what’s available on the market.
FAQs to Ask Yourself Before You Switch Power Suppliers
There are a few things you need to figure out before you switch suppliers.
First, check whether your home is in a ZIP code with a deregulated market. Check on the PowertoChoose.org website.
Next, you need to understand your current electricity contract details clearly, including:
- Price per kWh paid
- Average monthly energy usage for the last year — ask your electricity supplier if you don’t have your bills to hand
- Any other fees you are paying or would need to pay, e.g., an early termination fee or additional service charges
- Whether your current contract is a fixed rate or variable rate plan
FAQs to Ask Yourself About New Electricity Deals
The information above will help you compare your current situation with any new offers from potential new energy suppliers. Check new arrangements for the kWh price, fees, and whether it’s a fixed rate or variable rate plan, plus take note of:
- Contract length
- Auto-renewal conditions and prices
- Any incentives such as free electricity at weekends or low introductory prices
- Minimum usage requirements — some companies charge much higher rates if you don’t reach an agreed energy usage every month
- Whether any renewable energy is in the mix (and if so, how much?)
- Payment options
- What happens when the contract expires
- Fees or charges for breaking the contract for any reason
Always look for customer reviews about the electric company you’re thinking of choosing, too.
Use all this information to determine how your old bill compares to your new potential electricity bill. Also factor in any deposits or early termination fees that you would be required to pay.
Important: Reading the Electricity Facts Label
Every electricity contract in Texas comes with an Electricity Facts Label (EFL).
Everyone should read their EFL before switching providers. This part may take the longest, but it is essential to understand what you are signing.
An EFL details the deal’s terms and conditions. It includes vital information like the price you’ll pay for each kilowatt-hour (kWh) of electricity you use, the contract type and length, and other — sometimes hidden — fees.
Is It Free to Switch My Electricity Supplier?
In general, it is free to switch your energy supplier, with some caveats.
You need to pay all money owed on your existing electricity contract, including any cancellation fees (also known as early termination fees).
Your new electricity supplier may ask for a deposit, too. The deposit may be returnable, assuming certain conditions are met.
Energy companies can stop people who don’t pay their previous utility bills from switching to a new supplier in what is known in Texas as switch-hold rules. Customers can swap companies only once all their energy debts are paid.
Is Switching Your Electricity Provider All About the Price?
At Amigo Energy, we think customer service is as essential as a low kWh price. What’s the point in saving 0.1 cents per kilowatt-hour if you can never get a hold of a customer service agent?
Amigo Energy is proud of its accountability and availability — we have staff ready to help out in case of any issues. Our no-hidden-fee agenda is backed up by a knowledgeable and agile team you can contact in several ways.
Our expert workers are just a call, email, or social media message away. Existing customers should be sure to have their account number handy before calling. And don’t forget that we speak your language, with operators who speak English and Spanish.
- Call us in English or Spanish – 888-331-8871.
- Send a Facebook message
- Chat with us online
- Use our Apple or Android app
Can I Change My Mind About Switching Energy Suppliers?
Consumers can change their minds when they switch their energy suppliers in Texas.
The PUCT says people have three days to cancel a new plan without paying a penalty.
The PUCT is there to help customers and can help with complaints customers have about their energy supplier. Don’t be afraid to contact them for help and advice. There are online forms or call 512-936-7120 for more information.
Can I Change My Electricity Supplier While in Debt?
In Texas, if a potential customer is in debt, that doesn’t prevent electric companies from offering a contract, but it may affect the deals they present. However, customers cannot switch electricity suppliers if they have a debt with another Texas electricity company.
Some electricity companies may ask to run a credit check on customers before agreeing to supply their electricity. The results may mean the energy company may ask for a deposit before providing power. People who fail credit checks can consider pre-payment electricity options.
An electric company cannot refuse service if someone has debts with nonregulated services like internet or cell phone providers.
Everything You Need to Know to Switch Power Suppliers
In Texas, electricity bills are something people can control through their energy usage, by developing energy-saving habits, and by choosing which electricity company supplies power to their residence.
The deregulated market has made it easy for customers to access information — and also to explore offers from the state’s multitude of electricity suppliers.
Consumers no longer have to look forlornly at their ever-increasing energy bills but instead can do some research and opt to switch power suppliers. We hope you’ll join the Amigo Energy family. And if you’re already a member, you can earn a $100 bill credit for every friend you refer who enrolls in a qualifying energy plan.
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