What to Do When Your Electricity Plan Expires Before Your Lease

Should You Renew Your Electricity Plan?

Should you renew your electricity plan if it expires before your rental lease and then cancel the plan when you move? It sounds clever but is it smart? We go over your options to help you find the best deal for the long haul.

When people change residences, they often move in the summer. If your electricity plan expires before your lease ends, you might wonder what to do. Some people consider renewing their plan, only to cancel it a week or month later when they move out. Texas law allows you to cancel your Texas electricity plan without an early termination fee (ETF) if you move. No harm, no foul. But is this strategy worth it?

The Short Term Renewal Option

Renewing your fixed-rate plan for just a week or a month might seem like a good idea. You could avoid the task of switching to a new plan. However, this approach can come with challenges. You may end up spending more time on the phone with your provider than you'd like. It’s possible they could be less willing to serve you in the future. When entering a new plan, the retailer might try to charge you a higher deposit. 

Of course, you can always shop for a new provider at http://www.texaselectricityratings.com/electricity-rates. You’ll always have the best rates at your fingertips. 

Alternatives When Your Electricity Plan Expires

Instead of renewing your plan, you could explore other options. One option is a pay-as-you-go plan. This type of plan allows you to pay for power as you use it. Plus, there’s no long-term contract. It can be convenient if you’re only staying a short time before your lease expires.

Another option is switching to a month-to-month plan. These plans don’t require long-term commitments, making them a flexible choice if your lease ends soon. They often have higher rates than fixed plans, but they save you the trouble of renewing and canceling a plan within a short time. 

Will This Save You Money?

The big question is whether these options will save you money. Renewing your plan and canceling it shortly after might seem easy, but it could cost more than you think. The time spent on hold with your provider and potential deposit issues are considerations. If you can put up with these issues, then renewing your plan is almost always the cheapest option. 

Pay-as-you-go and month-to-month plans usually have higher rates, but they offer flexibility. You won’t need to worry about cancellation fees or getting stuck in a contract. Plus, the ease of switching power providers later on can be a big advantage. 

As a renter, Texas utility laws are on your side when your electricity plan expires before your lease. You’ll never be stuck moving with a power plan you don’t want. Consider what works best for your situation and how much headache you're willing to deal with.