Before you switch your energy provider, you should first know if you are under contract. If so, you should determine how much of your contract you still have left and if you can get out of it early. You can find this information on your bill or the provider’s website. In most cases, switching without an early termination fee is allowed under the Public Utility Commission regulations. You can also usually switch your variable rate plan without an early termination fee if you do so at least 14 days before the plan’s end date at URL.
Compare energy plans
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Before you compare energy plans when switching energy providers, you need to know your current monthly energy budget and how much each plan costs. Your energy bill will show you how much you spend on gas and electricity each month. In many cases, your utility will use electronic meters to track the amount you use. For gas, the meter will show how many cubic feet or therms you use every month. Some plans have tiered pricing, meaning that the cost increases every time you use more than a certain amount. If you use a certain amount of energy each month, you may see an increase in your electricity rates after 250 kWh.
The best way to compare energy plans when switching energy providers in Texas is to estimate how much you use each month. The best way to do this is to use an Online Electricity Usage Calculator to determine your current energy usage and compare it to that of competing plans. Different electricity plans may offer different discounts based on how much you use, so be sure to estimate how much energy you’ll be using in your new home.
Avoid rate increases
If you switch your energy provider mid-move, you may find that your rates have increased by as much as 20 percent. The cap on energy prices set 65 days from the date of notification, but most providers have now adopted this as their own target. The best way to protect yourself from price increases is to switch to a different deal as soon as possible. To avoid rate increases when switching energy providers, compare prices and deals before making your decision. Compare prices from different suppliers using accredited comparison sites such as MoneySuperMarket, Uswitch, EnergyHelpline, and Consumer Reports.
If you currently have a contract with a public utility company, consider switching to a competitor who owns the poles and wires that carry your electricity. You may be eligible for a lower rate, but you will lose any cashback you’ve accumulated throughout the year. Before switching, make sure to consider the introductory discount from your current provider. It might make financial sense to switch to a new energy supplier if the rate increases are much lower.
Lock-in your rate
When switching energy providers, you may be tempted to opt to lock-in your rate. Lock-in your rate means that you’ll be locked into the same rate regardless of price fluctuations. This can be an issue if you’re locked into a high rate. However, you can avoid it by timing your purchase carefully. If you can wait until the rate drops, you’ll be better off than if you lock in your rate now.
Besides the fact that locking-in your rate will protect you from unexpected increases in your electric bill, you’ll be guaranteed a consistent, affordable rate throughout the year. That’s a great feature, especially if you plan to move in the near future. Changing energy providers is a big inconvenience, so it’s smart to secure a fixed rate before switching. Moreover, you’ll avoid the headache of a hefty cancellation fee and the possibility of a high electric bill.
Pay attention to fine print
There are many nuances to pay attention to when switching energy providers. Before you choose a new provider, make sure that you fully understand your current contract. You should double check that there are no early termination fees before you sign anything. If you do not, you could end up getting stung with fees that you didn’t expect. When you’re switching from one energy retailer to another, be sure to read all of the fine print so you don’t end up paying more than you should.
Electricity contracts are full of legalese and industry jargon. Oftentimes, people will only read the kilowatt-hour price of their energy, ignoring the rest of the contract. Unfortunately, this is a costly mistake, as many people who purchase large amounts of energy make the mistake of not reading the fine print. Therefore, before you sign anything, make sure to read it carefully.
