Tens of thousands of Texans are experiencing a new frustration: being switched to a different electric provider without their consent. This is happening even to customers in the middle of a contract with their chosen provider.

Unexpected Account Transfers

Many Texans are receiving notices from new retail electric providers, like Discount Power, despite having existing contracts. This occurs when one company sells a “book of customers” to another. In March, NRG purchased customers from Budget Power, and SFE Energy acquired customers from True Power.

Why are these transfers happening?

According to Chris Coulter, owner of Texas Power Agents, smaller companies with attractive rates and customer bases are being purchased by larger providers to increase market share. “It’s a hassle. You get a bill from somebody else. It’s confusing,” Coulter stated.

Your Rights and Protections

The Public Utility Commission of Texas (PUC) requires providers to notify customers in writing at least 14 days before any change. Even if your rate and contract terms remain the same, a new provider may have different billing policies.

Potential New Fees

For example, some customers switched from True Power to SFE Energy received a notice about a $3.25 monthly “convenience fee” unless they enrolled in auto-pay. Customers have a 14-day window to switch providers without penalty after being transferred.

What to Do If You're Switched

  • Read the Letter Carefully: Note the effective date of the switch.
  • Look for New Fees: Be aware of any new fees or requirements.
  • Switch Within 14 Days: You can typically switch to a new provider without an early termination penalty within 14 days.
  • File a Complaint: If you didn’t receive proper notice, weren’t given time to switch, or are charged an improper fee, file a complaint with the Public Utility Commission.

Both SFE Energy and NRG have stated they honor the original contract rate and length. NRG explained that these transfers can provide stability, especially if a smaller provider is facing financial difficulties. They suggest offloading customers can help smaller companies remain in business.