High energy bills and confusing rates can make staying with the same provider feel like a costly mistake. But in deregulated markets, switching to a new electricity supplier is often fast, simple, and interruption-free, and it could mean big savings on your energy bills.
This guide walks you through everything you need to know to change your electricity supplier confidently. You’ll learn how the process works, why your power stays on, how to compare energy plans, and what to expect during enrollment. We’ll also cover fixed vs. variable rates, early termination fees, and how public utility commissions regulate the change.
Whether you’re in Texas, Massachusetts, or another deregulated state, switching can be stress-free, especially with a broker like Utilities Now handling the process for you.
Why You Won’t Lose Power When Switching
Many people hesitate to switch because they worry their lights will go out during the transition. But the truth is simple: you will not lose power when switching. The infrastructure that delivers your electricity stays the same, even when your supplier changes.
Your local electric utility, also known as the distribution company, owns and maintains the power lines. They’re still responsible for delivering electricity and handling outages. Your new electric supplier just manages the energy supply portion of your bill.
[Callout: You will not lose power when switching — the lights stay on throughout the change.]
This seamless process is regulated by your state’s public utility commission (PUC) to protect consumers. Most transitions are complete within a few business days, and your smart meter continues to track usage in kilowatt-hours (kWh), regardless of provider.
Changing Electricity Supplier Checklist
Switching is easier than most expect. Here’s a simple checklist to guide the process:
- Review your current contract: Look for the end date, your current rate type, and any early termination fees.
- Compare new energy plans: Search with your zip code to look for fixed-rate or variable-rate options in your area, considering pricing, contract terms, and energy sources like renewable energy.
- Choose a new provider and enroll: This can be done online or over the phone in minutes.
- Your new supplier handles the switch: They’ll coordinate with your utility to start your new service without any action needed from you.
Tip: If your contract isn’t up yet, check whether it’s the best time to switch. See our guide on how to switch and maximize savings, which includes information on how to time your switch.
Switching can be as easy as a five-minute call, especially if you use a service like Utilities Now, which handles the comparison and enrollment for you, at no cost.
Want to make switching even simpler? Let us do the work — we’ll find you a cheaper rate and manage the switch for you, so you can relax and enjoy uninterrupted savings.
Fixed Rate vs. Variable Rate: What’s Better?
Understanding rate types helps you choose the right energy plan. Most providers offer two main types of pricing.
Fixed-Rate Plans
Fixed-rate plans lock in a stable price-per-kWh for the length of your contract. This offers predictability, which is helpful when energy prices fluctuate.
- Budget stability: You’ll pay the same rate each month, even if market prices rise.
- Long-term savings: Fixed prices protect you during price spikes, but they may be higher than what others are paying when the market dips.
- Early termination fees: Exiting early may incur a penalty, so check contract terms.
Variable-Rate Plans
Variable-rate plans, as the name implies, have a variable price. This means the monthly price changes based on market conditions. These can offer savings but carry risk.
- Market flexibility: If prices fall, you might save more than with a fixed rate.
- Higher volatility: If prices rise, your energy bills may spike.
- No long-term commitment: Some variable plans are month-to-month with no penalty for leaving.
Deregulation: Why You Can Choose a Different Supplier
In deregulated energy markets, like Texas and parts of Massachusetts, you can choose from many electricity providers. Your local utility still delivers your power, but your chosen supplier sets the rate and plan structure.
Here’s how it works:
- Electric utilities maintain infrastructure — poles, wires, house connections, etc. — and restore power during outages.
- Energy suppliers provide the actual electricity, which may come from renewable energy, natural gas, or other energy sources.
- Public utility commissions oversee fairness, pricing disclosures, and smooth transitions between providers.
Deregulation increases consumer choice and drives innovation. You can pick a supplier that aligns with your goals, whether it’s lower costs, energy efficiency perks, or cleaner electricity.
Billing, Meters, and Service Area Considerations
Switching doesn’t require new equipment or changes to your meter reading process. Your smart meter still measures energy usage accurately, regardless of which supplier you’re with.
- Billing remains smooth: Some suppliers offer consolidated billing, while others may bill separately from your utility. Either way, your service remains uninterrupted.
- No installation needed: Smart meters work universally across providers.
- Know your service area: Not all providers operate in every utility territory, so be sure the competitive supplier you choose serves your region.
Your new supplier prices will show up in the next billing cycle, usually within one to two billing periods.
Understanding Business Energy and Gas Suppliers
If you’re managing a small business, switching business energy providers can also offer cost savings and predictability. Plans are structured similarly to residential offerings but often include customized rates based on usage levels.
In some states, you can also switch your natural gas or gas supplier separately from electricity. Just like electric service, your utility still maintains pipelines and safety infrastructure, while the gas supplier handles your supply rate.
Switch Today Without Losing Service
Switching electricity suppliers can be one of the fastest ways to lower your electric bill without any impact on your service. Thanks to deregulation and reliable utility infrastructure, you can make the change with no downtime and no stress.
Whether you’re searching for renewable energy options, better contract terms, or just a cheaper fixed price, making the switch is as simple as reviewing your current plan, shopping for new options, and enrolling. And with services like Utilities Now, the process becomes even easier, delivering long-term savings and reliable service you can count on.
FAQs About Changing Electricity Supplier
Changing energy suppliers is straightforward, but here are answers to common questions to help you feel even more confident in the process.
Will I lose power when switching electricity providers?
No, you will not lose power when switching electricity providers. The lights stay on throughout the change. Your local utility still delivers the electricity through the existing infrastructure. The switch happens behind the scenes, without disrupting your power.
What happens after I enroll with a new provider?
Your new provider contacts your utility to start the switch. You’ll get a confirmation notice, and the change takes effect after your next meter reading or billing cycle.
Can I switch anytime, or do I have to wait for my contract to end?
You can switch anytime, but you may face early termination fees if you leave your current plan early. Always review contract terms before enrolling with a new supplier.
Do I have to contact my current supplier to cancel?
No. Your new electricity provider manages the transition for you. It’s a hands-off process for most customers.
What if I change my mind after switching?
Some states offer a rescission period (typically three business days) to cancel your new enrollment without penalty. Check your state PUC for exact rules.
How often can I change suppliers?
You can change as often as your contract allows. Some customers switch every six to 12 months to take advantage of better supplier prices or plans with better energy efficiency perks.