On Switching Energy Providers In Energy Deregulated States

As an energy consumer, you have the right to choose your energy provider. Consumers have the liberty to switch energy providers if they no longer enjoy their current one’s services.

Switching energy providers is a straightforward process. With the more states right nowadays having deregulated energy, most consumers have many options for electricity providers without the fear of monopoly by utility companies. Because of this, many Americans can now easily shop and compare rates. 

When to Consider Switching Providers

The main reason for switching energy providers is because the consumer moved utilities or houses. However, there are various other reasons why some needed to change their energy suppliers. It could be to save money, for convenience, or the consumer is no longer happy with the services of their current one. 

Switching providers can save the consumer money every year. Electricity prices continuously change. The deregulation of energy fosters competition among energy providers, with consumers choosing who has the best deals. This results in a decrease in energy prices, which is something you should take advantage of. 

Another reason for the switch is convenience. This happens when the energy plan no longer fits their needs. For example, if a consumer wants to opt for green energy or their energy consumption has changed drastically, they will need to switch.

No company is perfect and can operate without any complaints from their clients. Other reasons for dissatisfaction with a provider’s services include unknown fees, poor customer service, unsure meter reading, and fluctuating prices.

Process of Switching Energy Providers

Here’s the process of switching energy providers in most deregulated states:

– Check your switching eligibility. Although several states already have law provisions on electricity deregulation, most of them are deregulated.  Only 16 are deregulated and open to energy retail competition. If you live in states that are not deregulated, you’re not eligible for energy provider switches.

– Read your current energy contract. It is essential to read your energy contract before making a switch. You should be prepared with pertinent information, such as the provider’s name, address, contact number,  the rate per kilowatt-hour, and termination fees. If you make a switch close to your termination date, you won’t need to pay any termination fee.

– Shop and compare electricity rates. Now that you have the right information regarding the switch, you can now start shopping for energy providers and compare energy rates. Narrow your options by filtering the rate you want, your location, and your preferred term of the contract. If you want more information about electricity rates, you can click here.

– Choose your new energy provider. After shopping and comparing rates, you can choose your new energy provider. You can either sign up for a plan through online registration or a phone call.

The transition from your old energy provider to the new provider is smooth. You won’t experience any electricity outage since it will still be the same electricity flowing through your wires. The old provider will work with the new provider for the arrangement of the switch.

What is Energy Deregulation?

Energy Deregulation is a reform of the current energy sector to avoid monopolies on energy through rivalry. The increasing trend enables energy consumers to choose from various energy suppliers based on prices and specialized offers that meet their needs and standards.

Before the deregulation, the utility company was responsible for distributing, transmission, and sale to consumers. It has taken its place throughout North America, and the distribution and transmission are done by the utility company, while retailers are responsible for the sale to consumers. 

Frequently Asked Questions

Here are the questions most consumers face before switching:

Will you be charged a termination fee?

The best place to know whether you will be charged with a termination fee is the contract. In most cases, it’s usually charged if you terminate your subscription early on the subscription. To avoid paying the termination fee, make a switch within 14 days from the end of your contract with the provider.

What can you switch your energy plan?

You can switch anytime. If you are willing to pay for an early termination fee, you can switch earlier than 14 days before your contract’s expiration. You will not be charged a switching fee. As for penalties, read the terms stated in the contract.

Can you cancel the switch?

Yes, you can cancel the switch. You may contact the energy company within three (3) days from your receipt of the Terms of Agreement to cancel it. The letter of confirmation of your switch application will also provide for the process on how to cancel.


With most States getting deregulated, they are now free to choose and switch their energy providers. The main benefit of switching is to save money on electricity expenses. The process is straightforward and does not require a lot of paperwork. All you have to do is to compare rates, choose a new provider, and wait