Final switch tips. When you make your final selection, don’t call your current electricity provider to cancel. Sign up with the new company only. Try to sign up at least five to seven days before your plan expires so the overlap between the two billing cycles is negligible. Some people switch too late and pay higher prices during the transition. If you have a smart meter, the state rule is you must be switched within 48 hours. But five to seven days is safer.
4. Know your current contract terms. Before you shop, know what you already have. (Surprisingly, most people don’t.) What’s your kwh rate? Check your electric bill. It may be higher than what’s available elsewhere. (In Texas, last week it ranged from 4.9 cents to as high as 13.5 cents.) Also call your provider and ask for the date your contract expires. Find out whether your rate is fixed or variable. Start planning a possible switch a month before a contract expires.
In this free market competing electricity retailers buy electricity wholesale from private power generators to sell at retail to around 85% of Texas residents. The partnership between generators and retailers is governed by the Electric Reliability Council of Texas, or ERCOT, which attempts to balance the power grid’s electricity supply and demand by purchasing small amounts of electricity at 15-minute intervals throughout the day.