How Does Switching Energy Providers Work?

In deregulated energy markets, consumers have the power to choose their energy providers. If you’re unsatisfied with your electricity rates or plan features, you have the freedom to explore options and switch energy providers or electric plans.

Switching may not be as complicated as you think. When you change electric suppliers, your utility company and power delivery remain the same — only your billing changes. Choose Energy can help you navigate the process smoothly. Read on to learn how to change electric suppliers with ease — or enter your ZIP code to discover fixed- and variable-rate plans, no-deposit electricity, prepaid plans, and more.

Many people switch energy suppliers to secure cheaper electricity rates. However, there are other benefits to switching providers. It might be time for a new energy supplier if:

• You notice significant changes in your energy bill each month and would rather have the stability of a fixed-rate plan.
• You want to switch to a green energy plan to lower your carbon footprint.
• Your current plan’s features don’t serve your needs, and you want a plan that works with your typical energy usage.
• Your current energy company added new fees to your plan or hiked up your renewal rate. 
• You’re not happy with your customer service experience with your current energy supplier.
• You want a plan with more online features, like an app or portal, for easily managing your account information.

By changing energy suppliers, you can secure lower energy rates, better customer service, or plan features that fit your unique energy usage habits.

You have the option to switch your electricity provider if you live in a deregulated energy market. According to the American Coalition of Competitive Energy Suppliers (ACCES), 31 states currently have some level of energy choice as of 2024. Certain states have deregulated only natural gas or electricity. Some deregulated states still have cities with a regulated energy market, such as Austin and San Antonio, and others limit the power to choose for commercial customers. 

If you live in a deregulated market, you can switch your electric company or plan, but doing so may result in an early termination fee (ETF) if you have a fixed-rate plan. Fixed-rate plans often have such a fee to encourage customers to stick with the plan through the entire duration. Check your Electricity Facts Label to determine if you’ll incur a fee if you switch electricity providers. You won’t receive an ETF if you move out of the provider’s service area.

Visit our service areas page to find out if you could change energy suppliers and save money on your energy bill. Find your state or enter your ZIP code.

Deregulated vs. regulated energy

Depending on where you live, your state or city may have a deregulated or regulated energy market. It’s important to know which one, as regulated energy markets don’t allow residents or businesses to choose an energy provider switch. If you live in an area with a regulated market, a public utility commission or other government agency regulates the energy supply and rates for residential and commercial buildings. 

In a deregulated market, utility companies still own the infrastructure and maintain your power lines, poles, towers, and more. The retail 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:

How to Switch Energy Suppliers

Difficulty level: Easy

Materials: A copy of your most recent electricity bill. That’s it!

Now that you know how to change electricity providers, are you ready to switch plans? Enter your ZIP code today to get started. Still not sure if you’re ready to switch? Learn how to switch energy providers and compare electricity rates in our guide.