Contract Renewal & Switching

The ideal time to begin the renewal or switching process is 90 to 120 days before your current contract expires. This window gives you enough time to review your recent usage and bills, run a free reverse auction to compare offers from more than 25 providers, and negotiate the best possible terms, such as fixed rates and protection from hidden fees or high demand charges. Starting early helps you avoid auto-renewal into higher rates or being forced into your current provider’s less favorable evergreen pricing. Even if you have less than 60 days remaining, it’s still worth acting quickly, as most providers allow switches right up to the day before expiration, but earlier planning always gives you the strongest position to lock in competitive rates before ERCOT market volatility increases.

If you take no action when your contract ends, most retail electricity providers will automatically roll you over into a month-to-month evergreen or variable rate plan, which is typically much higher than your original fixed rate. These post-contract rates can increase by 20 to 50 percent or more, especially during periods of high demand like summer peaks, leaving your business exposed to unpredictable market spikes. The good news is that you are never permanently locked in. You can still switch providers at any time after expiration, though you should check your current agreement for any lingering early termination fees if the contract has not fully ended. Our free reverse auction can quickly identify better options to prevent you from overpaying once the contract rolls over.

The amount a business can save by proactively renewing or switching depends on factors such as usage volume, location within the ERCOT grid (Oncor, CenterPoint, AEP, Xcel, etc.), and the current rate being paid, but companies that act strategically typically reduce their electricity costs by 15 to 30 percent compared to auto-renewal or evergreen rates. Small offices or retail locations often save between $1,200 and $6,000 per year, while mid-sized facilities such as multifamily properties, restaurants, or manufacturing plants frequently see annual savings of $10,000 to $50,000 or more. Our free reverse auction pits more than 25 providers against each other to uncover rates that are often significantly lower than what your current provider offers at renewal. We provide a personalized savings estimate at no cost or obligation so you can see the exact potential benefit before making any decision.

While it is possible to handle renewal or switching on your own, using a licensed energy broker like EnergyBrokerTx generally delivers better results with far less time and effort. We compare offers from more than 25 providers in a single reverse auction instead of you having to contact each one individually, and we negotiate terms, identify hidden fees, and steer you away from unfavorable contracts. We also calculate whether any early termination fee is worth paying based on the long-term savings. The entire service is completely free to you because providers pay us a standard commission that is already built into the rate structure, so there is no direct cost to your business. Thousands of Texas companies trust us because we consistently secure lower rates faster and with greater transparency than DIY efforts can achieve.

In most cases, there are no penalties when you switch providers after your current contract has expired. If you are still within an active contract term, you should review the agreement for any early termination fees, which typically range from $100 to $500 per meter and may be prorated depending on the remaining term. In many situations, the long-term savings from a better rate far outweigh any ETF, and we help calculate whether paying the fee makes financial sense. The switching process itself carries no risk to your operations: there are no wiring changes, no downtime, and no service interruptions because the same utility continues to deliver power. As a licensed PUCT broker, we manage all paperwork and coordination to ensure a smooth, compliant transition with full transparency.