How to Switch Electricity Providers: Step-by-Step Guide

Switching electricity providers can save you money, support renewable energy, or get you better contract terms.

In deregulated states like Texas, Ohio, Pennsylvania, and Massachusetts, you have the power to choose your electricity supplier. Many consumers stay on their utility's default rate without realizing they could save hundreds of dollars every year.

Competitive suppliers often offer rates below the utility's Standard Service Offer, fixed-rate plans that protect against market fluctuations, and 100% renewable energy options for environmentally-conscious customers.

Good news: it's free to switch, there's no service interruption, and the whole process takes about five minutes to complete.

Your utility continues delivering your electricity through the same wires regardless of which supplier generates your power. Nothing changes except who you're paying for the electricity itself.

Before comparing suppliers, locate your most recent electricity bill.

You'll need a few pieces of information from your bill. Your utility account number is required for enrollment with any new supplier. Find your current electricity rate (per kWh) in the supply or generation section. Check your average monthly usage in kWh, which you can often find in the 12-month history graph. And note your utility company name, whether that's AEP Ohio, Duke Energy, PECO, PPL Electric, Eversource, National Grid, or another provider.

Keep this information handy while shopping for rates. Having accurate data helps you compare rates properly and complete enrollment without hiccups.

Use official comparison tools to review supplier offers in your area.

For comparison resources, ElectricRates.org works for Texas, Ohio, Pennsylvania, and Massachusetts and calculates savings automatically. Ohio residents can also use PUCO's Apples to Apples at energychoice.ohio.gov. Pennsylvania has PAPowerSwitch.com.^[2]

Don't just compare the rate per kWh. Look at contract length to see how long you're locked in, early termination fees if you leave early, whether the rate is fixed or variable, any monthly service fees beyond the rate itself, and renewable energy content if green options matter to you.

ElectricRates.org displays all fees transparently so you can compare true total costs, not just the headline rate.

Read the complete contract terms before enrolling with any supplier.

Fixed-rate contracts lock your per-kWh rate for 6 to 36 months. Variable-rate plans change monthly based on market conditions. They might start low but can increase significantly, so be careful with those.

Pay attention to early termination fees, which can range from $50 to $200 or more if you leave early. Check what happens at contract expiration since some suppliers auto-renew at higher variable rates. Look for any monthly service fees beyond the rate itself. And see how the supplier will notify you about changes.

Taking time to understand terms prevents surprises later.

Once you've selected a plan, you can enroll directly through the supplier's website, by phone, or through ElectricRates.org which handles the paperwork for you.

You'll need your utility account number, your service address including ZIP code, and personal identification like your date of birth or last four digits of your SSN.

Double-check your account number and rate selection before submitting. Complete the form carefully, then submit and you'll receive immediate confirmation.

The supplier handles notifying your utility about the switch. You don't need to contact your utility or take any additional action.

Within a few days of enrollment, you'll receive written confirmation from your new supplier. This document includes your locked-in rate, contract length, start date, and important terms.

Review it carefully to make sure everything matches what you selected.

Each state has a cooling-off period where you can cancel without penalty. Ohio gives you 7 days.^[1] Pennsylvania and Massachusetts give you 3 business days. If anything looks wrong or you change your mind, contact the supplier immediately to cancel.

Keep this confirmation document for your records throughout your contract term. It serves as proof of what was agreed if any disputes come up later.

After enrollment, the switch typically takes one to two billing cycles to complete, usually 30 to 60 days. The exact timing depends on where you are in your current billing cycle when you enroll.

During the waiting period, you'll continue receiving electricity at your current rate. Nothing changes about your service and no interruption occurs.

You'll receive a utility notification confirming your supplier change with your effective date. After that, your new supplier's charges will appear on your next bill.

The bill format stays the same with separate supply and delivery charges. The only difference is that the supply portion now reflects your new rate.

Once the switch completes, take a few minutes to review your first bill with the new supplier. You'll want to check that the supply rate matches what your contract promised, that the correct supplier name appears on the bill, and that the total supply charges (rate times usage plus any fees) look right.

A few common billing issues to watch for include incorrect rates, unexpected fees, and wrong meter read dates. If something doesn't look right, contact your supplier immediately. Most billing errors get resolved quickly when you catch them early.

Here's a tip that'll save you headaches: keep your bills throughout the contract term so you can compare them month to month. This makes it easy to verify your rate stays as agreed.

If you're currently under contract and want to switch, check your contract for early termination fees first. Some contracts allow penalty-free switching during a window before expiration, typically 14 to 30 days before the contract ends.

When an ETF applies, do the math. Calculate your potential savings with the new supplier and compare that against the termination fee. Sometimes paying the fee makes financial sense if the new rate is significantly lower.

Remember that you can always switch suppliers at any time. The early termination fee is simply a cost to factor into your decision, not a barrier that prevents switching.

Start comparing rates about a month before your contract expires. This gives you time to find a good deal and avoid automatic renewal at unfavorable terms.

Many people hesitate to switch because they've heard things that aren't true. Let's clear up the common misconceptions.

Will your power be shut off during the switch? No. Your service continues uninterrupted throughout the entire process.

Do you need new equipment or wiring? No. Your existing electrical system works with any supplier.

Can your landlord prevent you from switching? No, not if you have an individual account in your name.

Will switching affect your credit? Some suppliers do a soft credit check, but this doesn't affect your credit score.

What if you change your mind? You can always switch again or return to your utility's default rate. There's no lock-in.

Switching takes five minutes, costs nothing, and saves money when you compare.