How to Avoid Early Termination Fees on Your Electricity Plan

Early termination fees (ETFs) are charges your retail electric provider applies if you cancel a fixed-rate contract before it expires. In Texas, ETFs typically range from $100 to $250, though some plans charge a flat fee per remaining month.

The simplest way to avoid an ETF is to wait until your contract term ends. Most providers allow you to switch without penalty during the final 14 to 30 days of your contract. Start shopping 60 days before your contract ends so you have time to compare and enroll without rushing.

A move exception is the most common legitimate way to exit a contract early without penalty. If you are relocating to a non-serviceable address, your provider must waive the ETF under PUCT rules. You may need to provide a lease or closing document as proof.

Some providers offer a rate-match or price-protection program. If a competing plan is significantly cheaper, it is worth calling your current provider to ask about matching the offer or waiving the fee.

Always read the Electricity Facts Label (EFL) before signing up to confirm the exact ETF terms for any plan you are considering.

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