How Does Switching Energy Providers Work?

If you live in a deregulated area, you can choose your electricity company from a variety of different options. Deregulation gives you the freedom to explore your options and switch energy providers if you’re unsatisfied with your current service.

Switching energy providers and plans is simple. You can use the free Choose Energy marketplace to find new electricity providers in your area and switch your service in a matter of minutes. Enter your ZIP code on this page to explore energy companies and plans available in your area, or continue reading to learn more about how to switch electricity plans today.

There are a variety of reasons why you might want to switch to a new electricity supplier. One of the most common reasons customers switch is to find a cheaper electric rate. While energy rates are an important consideration, you might also want to switch providers for one of the following reasons:

• You are enrolled in a variable-rate or prepaid electricity plan and would like the stability of a fixed-rate plan instead.
• You want to switch to a green energy plan to lower your carbon footprint.
• Your current plan doesn’t align with your electricity usage habits or goals, and you want to find a plan that better serves your needs.
• You are unhappy with your current provider’s customer service experience.
• Your current provider added new fees to your plan or hiked up your renewal rate.
• You want a plan with more online features, like an app or portal, to manage your account information easily.
• You are moving outside of your provider’s service area.

An important factor to consider before switching is whether your provider will charge an early termination fee (ETF). If you’re signed up for a fixed-rate plan with a contract, you’ll likely incur an ETF if you end your service before your term is up. You won’t be charged a termination fee if you cancel because you are moving.

You have the option to switch electricity providers if you live in a deregulated energy market. Currently, 30 states and Washington, D.C., have deregulated their electricity and/or natural gas markets. Some states limit energy choice to commercial customers, while others have also deregulated the market for residential customers.

Visit our service areas page or find your state in the following table to learn more about energy choice in your area. You can also enter your ZIP code on this page to explore current electricity rates and plans near you.

Deregulated vs. regulated energy

Depending on where you live, your state or city may have a deregulated or regulated energy market. In regulated energy markets, a public utility commission or other government agency regulates the energy supply and rates for residential and commercial buildings. Customers living in regulated areas can only receive service from the utility company serving that area.

In a deregulated market, utility companies are assigned by location and own the infrastructure and maintain power lines, poles, towers, and more. Utilities are also responsible for responding to power outages. The retail electricity suppliers, meanwhile, buy energy and sell it to homes and businesses. Contrary to what it may sound like, energy deregulation doesn’t mean there is no oversight in the energy market. It simply means that retail energy suppliers can compete for your business.

With Choose Energy, you can switch your electricity provider in a few easy steps. Our free marketplace shows low rates from top providers in your area for you to compare, choose, and change your energy supplier hassle-free. Here’s how it works:

Now that you know how to change electricity providers, are you ready to switch plans? Enter your ZIP code today to get started. To learn more about how the energy market works, explore our guide to shopping for electricity plans.