Switching electricity plans means moving from a monthly bill sent at the end of each month to a system where you pay upfront and your daily usage is automatically deducted from your balance. This type of service appeals to many Texans because most pay-as-you-go electricity providers do not require a credit check or deposit, making it a fast and accessible option. Many providers offer both postpaid and prepaid plans, allowing customers to choose the model that best suits their budget and usage habits. Since nearly all Texas homes already have smart meters that report usage in near real time, no new equipment is usually needed. Once you choose a prepaid provider, they will handle the entire switch, and service can often begin the same day you fund your account.
Before initiating the switch, it’s important to confirm the status of your current electricity contract. If you’re under an active agreement, switching before the final 14 days of your contract may result in an early termination fee, as permitted by the Public Utility Commission of Texas (PUCT). However, you’re generally free to switch providers within the last 14 days of your contract without penalty.
In some cases—though this is uncommon—your current account might have what’s called a switch hold. This typically occurs only when there’s an unpaid balance or unresolved billing issue with your existing provider. A switch hold temporarily prevents you from moving to another company until the balance is cleared. Once you have paid the outstanding amount, the hold is lifted, and you’re free to start your new prepaid electricity service.
Overall, switching from postpaid to prepaid electricity is fast, low-hassle, and helps you stay in control of your energy use and spending—all without the need for credit checks or large deposits.