Can I Switch Power Suppliers? Yes! Here’s How (2024)

Did you know that consumers can choose their energy supplier in several states? The U.S. classifies electric power markets as either regulated or competitive (deregulated). Residents in regulated states are assigned a power supplier. These consumers do not have the option to switch, even if they are unhappy with their service or rates. On the other hand, residents in competitive energy markets often have several suppliers from which to choose. These suppliers offer a variety of plans to meet consumer needs.

If you’re not sure which scenario applies to you, this energy map from the Environmental Protection Agency (EPA) indicates which states have deregulated energy.

Switching power suppliers can mean better customer service, access to renewable energy options, and lower monthly bills. But if you have the power to choose your supplier, you might not know where to start. Learn more about what it means to switch a power supplier, questions to ask before you change suppliers, and what features you should look for in a new plan.

What Is Switching Energy Suppliers?

In deregulated states like Texas, two entities play a role in residential energy: the utility and the supplier.

• The utility: This entity brings the energy to your home. You do not have a choice in your utility, which is typically the public utility company for your municipality. Your utility owns and maintains the poles and wires.

• The energy supplier: Your energy supplier sets the price for different rate plans, provides customer service, and bills you each month. When you “switch energy,” you choose a new energy supplier. Depending on your state’s regulations, you may be able to switch your natural gas supplier, electric supplier, or both.

Is It Worth Switching Electricity Suppliers?

Popular reasons to switch to a new electric supplier are saving money, having access to better customer support, and taking advantage of green energy sources. Whether it’s financially beneficial for your household to make this switch requires a little research. But first, let’s cover one reason why you shouldn’t make the switch.

A New Energy Supplier Can’t Offer You More Reliable Service

The utility for your area is responsible for its infrastructure, like the power lines and the service lines that connect to your house. They control the quality of service you receive.

On the other hand, energy suppliers have no control over brownouts or outages. Be wary of any supplier that promises “better service” or “fewer blackouts.” Only your local utility provider can make improvements to your service.

You can contact your local public utility commission if you have unstable electric or gas service. If you need additional help with your power, you can reach out to your state’s utility commissioner.

Now that we covered why you shouldn’t switch power suppliers, let’s review a few reasons why you should.

A New Energy Supplier Can Save You Money

If you haven’t looked at rates from other suppliers, you might be paying more than you need to. Here are some situations that could indicate it’s time to shop around.

• Lifestyle changes. A new work schedule, working from home, or becoming a stay-at-home parent can impact your energy usage. Are you running your washing machine or dishwasher at different hours? Is the TV now on most of the day? When you use electricity is an important consideration. Some rate plans offer free nights or weekend electricity. These plans save you money if you use most of your energy during these free or discounted hours. However, the catch with these plans is that your weekday energy is more expensive per kilowatt-hour.
• Household size changes. Your home’s electricity use can change anytime someone moves in or out. This ties in a bit with lifestyle changes. For example, if you’re a single parent who works weekends and your only child just left for college, your “free weekends” plan might not make sense anymore.
• You haven’t compared plans in a year. Some homeowners and renters who live in deregulated states are already savvy energy shoppers. But suppliers can change their rates and plan options at any time. If it’s been a while since you’ve looked at energy plans from other power suppliers, you may want to comparison shop.
• Your introductory rate ends soon. Some suppliers offer incentives to new customers. These are short-term or one-time energy deals like one month free or a lower initial rate. If you didn’t read the fine print on your contract, you might be in for a shock when your next bill comes. Some of these plans lure in new customers with attractive deals, only to raise prices later. You can switch electricity suppliers if you’re not happy with your rate after the incentive period is over.

A New Energy Supplier Can Offer Better Customer Service

You might be happy with your current rates but tired of getting the runaround. Are you put on hold for a half-hour every time you call your current supplier? Or are you always in a dispute about meter readings?

Some energy suppliers excel at customer service, while others can leave you feeling frustrated. Read through customer reviews to make sure you aren’t going from bad to worse.

A New Energy Supplier Can Offer Renewable Energy

More consumers are interested in greener energy supplies like solar and wind. Renewable energy could be available in your area, even though your current electric company doesn’t offer these options. You may need to switch energy suppliers to offset your carbon footprint.

Is Switching Energy Suppliers Free?

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Your old supplier may charge an early termination fee if you switch before your contract ends. These termination fees might be as high as several hundred dollars. You should take that expense into account before you change. If your plan is almost up, it could make sense to wait to choose a new supplier.

That said, paying a cancellation fee could be worth it if you have a long-term contract. You could still save money, even after you pay a termination fee.

What Should I Look for When Switching Energy Suppliers?

When you compare potential providers, you should consider price, term length, and renewable energy options.

• Price per kilowatt-hour: Some plans offer perks like free electricity on nights or weekends. These plans can save you money if they fit your lifestyle. Read the fine print carefully because you could pay more per kilowatt-hour when using power during the day.
• Term length: You can expect to pay less per kilowatt-hour if you sign up for a multi-year plan. These can be a big commitment for some households. If you expect any significant changes soon, you might be better off with a shorter-term plan. Before you enroll in a contract that is longer than 12 months, ask yourself:
• Could I move before the term is up?
• Will anyone move into or out of my home?
• Could my work hours change?
• Renewable energy sources: Green energy choices like solar or wind are attractive options for some consumers. For example, Tara Energy offers consumers options to offset their carbon footprint in specific regions.

How Do I Switch to Another Energy Supplier?

Switching energy suppliers sounds daunting, but it’s easier than you might think. Just follow these steps to sign up with a new supplier.

Contact Your New Power Supplier

Tell them which plan you want to enroll in. This phone call is also an excellent time to:

• Ask for your new account number
• Set up direct debit payments
• Find out your switch date

You typically do not have to notify your current electricity supplier about the switch. Your new supplier will reach out to them to coordinate the switching date.

Confirm Your Meter Reading on the Day of the Switch

You should take a photo of your meter on your scheduled switch day. You can then verify that meter reading when you receive your last bill from your old supplier.

Carefully Review Your Final Bill From Your Old Electricity Supplier

Ensure they haven’t charged you more than you owe and that you receive any credits owed to you. You should see your cancellation fees or early termination fees on your final bill.

Switching power suppliers is just that easy! Once you complete these steps, you’re on your way to saving money on your monthly power bills.

Can I Change My Mind After Switching Energy Suppliers?

Yes, you can change your mind after switching to a new energy supplier. Some suppliers offer a short grace period where you can cancel your contract without any penalties. Be sure to ask when you speak to a representative.

You can switch energy suppliers any time you want, even if you don’t have a grace period. But keep in mind that you could pay cancellation charges or early termination fees without one.

Can I Change Electricity Suppliers While in Debt?

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You most likely won’t be able to switch energy suppliers if you have an outstanding balance. Suppliers can place a switch hold on accounts with a past due balance. This hold prevents a new electricity supplier from taking over the account.

A switch hold can create a hardship for consumers with long-term variable rate plans. These plans can result in unpredictable bills if electricity prices fluctuate. A fixed-rate plan allows for easier budgeting.

If a switch hold is an obstacle, programs can help with energy bills. If you qualify for financial assistance, you can pay off your balance and have your switch hold removed.

What If the Previous Tenant Has a Past Due Energy Bill?

Renters who have recently moved and want to switch energy suppliers can be in for an unpleasant surprise. An energy supplier could tell you that your address has a switch hold. If the previous tenant is long gone, you might get stuck with their energy supplier.

If this happens to you, you do have recourse. It’s often as simple as filling out a form that confirms you are the new tenant. Reach out to your landlord or rental agency if you have difficulty getting a switch hold off the account.

Switching Alternatives for Power Supply: The Choice Is Yours

Thanks to the deregulation of energy prices in many state such as Texas, Illinois, and Ohio among others, some households can choose their power suppliers. If you’re wondering if you have the power to choose a supplier like Just Energy, simply check out the areas we serve.

The right rate plan can save you money and align with your renewable energy goals. If you live in a region with a competitive energy market, the choice is yours.

Brought to you by justenergy.com

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