"If I'm moving, do I have to pay an Early Termination Fee?"
No – That’s because all electricity service contracts in Texas are location-based and state law requires all providers to waive Early Termination Fees when a customer is moving from one address to another. This means you won’t be penalized for canceling your current contract early if you're relocating to a new home or apartment.
The applicable statute text is below:
CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS. (effective date 01/06/2022)
Subchapter R. CUSTOMER PROTECTION RULES FOR RETAIL ELECTRIC SERVICE.
§25.475(c)(2)
(C) A contract is limited to service to a customer at a location specified in the contract. If the customer moves from the location, the customer is under no obligation to continue the contract at another location. The REP may require a customer to provide evidence that it is moving to another location. There must be no early termination fee assessed to the customer as a result of the customer’s relocation if the customer provides a forwarding address and, if required, reasonable evidence that the customer no longer occupies the location specified in the contract.
Statute link: https://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.475/25.475.pdf
§25.475(c)(2)(C) can be found near the top of page 3.
This same statute also states in §25.475(f)(4):
(C) The TOS from the provider must also include: A statement of the customer’s ability to terminate service without penalty if the customer moves to another premises and provides evidence that it is moving, if required, and a forwarding address.
Switching Providers Without Moving – an Early Termination Fee may apply
If you're planning to switch providers before your current contract expires, you will probably have to pay an Early Termination Fee to break your existing agreement.
Frequently Asked Questions
What is an Early Termination Fee?
An Early Termination Fee is a penalty imposed by a provider when a customer cancels their contract before the agreed-upon term ends. It is designed to discourage customers from ending their contracts early.
How much are they?
Early Termination Fees can vary significantly based on which provider you’re with, and sometimes even which plan you’re enrolled in.How do I find out what my ETF would be?
You can find your Early Termination Fee (ETF) on the Electricity Facts Label (EFL) or in the Terms of Service (TOS) provided when you first enrolled in your plan. Alternatively, you can check your online account or contact your provider directly.