How to Get Out of an Electricity Contract

Stuck in an Electricity Contract?

Locked in an electricity contract that no longer works for you?

Breaking free might seem challenging, but the good news is you’ve got options.

We’ll guide you through the process and help you switch when it benefits you - or, if it doesn’t make sense right now, set a reminder for when it’s the right time to make a move.

Breaking Free from an Electricity Contract in Texas

Moving out? Cancel your contract without penalties.
Nearing the end of your contract? You can switch up to 14 days before it expires, avoiding fees.
Paying to break it? Sometimes, paying the early termination fee (ETF) now saves you more in the long run if you switch to a better plan.

Never Miss Your Contract End Date

Enter your email, zip code, and contract end date, and we’ll remind you when to switch, helping you avoid holdover rates or costly surprises.

Know Your Contract Terms

The first step to freeing yourself from a bad contract is understanding exactly what you’re dealing with. You need to know:

Contract End Date: When does it expire?
Cost per kWh: How much are you paying for your electricity?
Early Termination Fees (ETF): What will it cost you to get out early?

With this information, you can weigh your options: stay and suffer through high rates or switch to something better before it’s too late.

Compare Rates Instantly

Use Live Link™ to instantly pull your electricity usage and compare plans based on your household’s needs.

See if there’s something cheaper and switch today - without the guesswork.

Watch Out for Early Termination Fees (ETFs)

Breaking a contract before it ends can trigger an ETF, a penalty for leaving early.

Depending on your provider, these fees can range from $50 to several hundred dollars, but they’re not unavoidable.

If you plan your exit strategically, you can minimize or avoid these fees altogether.

Moving Out? Make a Smart Exit

Texas law allows you to cancel your electricity contract without penalties when moving to a new home.

This is your opportunity to find a plan that better fits your needs and budget.

Don’t let your current provider convince you to transfer your service.

Instead, take this opportunity to start fresh and secure a better deal.

How to Transfer an Electricity Account to a Family Member or Roommate (When Moving Out)

If you’re the current account holder and you’re moving out, and someone else (like a family member or roommate) is staying behind, here’s how to smoothly transfer the responsibility for the electricity account:

Notify Your Provider: The current account holder needs to call their electricity provider and inform them they are moving out. This step is essential to avoid ongoing charges and prevent early termination fees (ETFs) from being applied to the existing contract.
New Account Holder Signs Up with Compare Power: Instead of transferring the existing account, the new resident (family member, roommate, etc.) should sign up for a new electricity plan through Compare Power. During enrollment, they should select the**“Move-in”** order type - not**“Switch.”** This is a great opportunity for the new resident to shop for rates and potentially secure a lower bill, as electricity rates fluctuate regularly, and they may find a better deal that suits their usage needs. To ensure no interruption in service, the move-in date should be on or before the current account holder’s move-out date.
Choose a Different Provider and Plan: It’s usually best for the new account holder to select a different plan and provider than the one the previous account holder had. By shopping around, the new resident can take advantage of current rates and avoid being locked into an old, potentially less favorable plan.

Important: If the new person selects a**“Switch”** order instead of a**“Move-in,”** the current account holder could be hit with an early termination fee (ETF). The**“Move-in”** option avoids penalties, as it’s treated as a fresh start for the new resident.

Following these steps will ensure a smooth transition, allow the new resident to find a better plan, and avoid unnecessary fees or service disruptions.

Should You Pay to Get Out Early?

Before you make any decisions, consider these factors:

ETF vs. savings: Compare the cost of the ETF to how much you’ll save by switching to a better plan. Sometimes, paying the fee could save you money. For a detailed guide on when it makes sense to pay your ETF and switch, check out our article on when to pay your ETF and switch electricity plans.
Service satisfaction: If your current provider’s service is unreliable or too expensive, the ETF might be a small price to pay for a better experience.
Rate changes: Have electricity rates dropped since you signed your contract? If so, switching early could save you significantly, even after paying the ETF.
Contract duration: If your contract is nearing its end, waiting it out might be smarter.
Are you moving soon? If you’re relocating, remember that you can cancel without penalty. Use this opportunity to find the right plan for your new home.

The Power to Break Free - Compare Power Is Here to Help

Navigating Texas’s electricity market can be complicated, but you don’t have to do it alone.

Compare Power makes it easy to compare plans, rates, and fees from various providers all in one place.

Whether you want to escape a bad contract or switch to a better plan, we’ve got your back.

Our platform gives you the power to make informed decisions, save money, and take control of your energy costs.

Next Steps - Time to Take Action

Enter your zip code: See personalized rates for your area.
Compare Plans: Get detailed information on rates, fees, and contract lengths.
Start Saving: Sign up online quickly and easily.

Stop feeling trapped - take control of your electricity choice today.

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Written by

Graham Griffin

Sr. Content and Media Specialist

Content Leader. Multimedia Storyteller. Data-Driven Creator.