What happens if my provider goes out of business?

March 1, 2021   By Save On Energy Team

What happens if my provider goes out of business?

The Electric Reliability Council of Texas required Griddy to leave the state’s energy market last week, meaning it could no longer serve customers. Other providers in Texas also reportedly are struggling in the aftermath of the winter storm that caused millions of outages in the state in the week after Valentine’s Day.

Following are questions you might have if your electricity company stops providing service and the answers to those questions:

Will I be without power if my provider leaves the state?

No. ERCOT will switch you to another provider, called the Provider of Last Resort, or POLR.

Will my rates change?

Yes. You’ll be place in a different plan by the new provider. POLR rates typically are more expensive than that provider’s best rate (though not at the $9 per kilowatt hour level Griddy reached in mid-February).

Can I do anything about it?

Yes. It is in your interest to shop for a new plan immediately. You’ll have to arrange to pay for any service you’ve used with the POLR provider.

Will I face a penalty for switching from the POLR plan?

No, as long as you switch within the first 60 days.

How do I switch?

Call the number on this page and a SaveOnEnergy.com® energy expert will find rates available in your area. You can get information about rates, brands, terms, and plan types to find one that is best for you.

Can you explain those filters?

  • This is the amount you pay for the electricity you use per kilowatt hour (kWh), including your transmission and distribution fees, taxes, and other charges. Save On Energy rates are always all-inclusive.
  • Some brands are well-known in Texas. That could appeal to you rather than a company you don’t know.
  • Terms can be month-to-month, or from 6 to 36 months or longer. Month-to-month terms will have variable rates.
  • Plan type. People who faced the super-high bills in Texas during the February storm signed up for variable-rate plans, in which prices are tied to the wholesale market. The safer bet is a fixed-rate That rate stays constant throughout the term of the plan. Increases in your bill would come from higher usage, higher transmission and delivery fees, and higher government taxes and other fees.

Need more information about picking a new provider? See our guide to switching.

What about my deposit?

If you paid a deposit to start service with your old provider, there’s good news. Your former provider must return any unused portion. However, your POLR provider may require a deposit within 15 days of service. (Low-income customers may be eligible for deposit assistance.)

Are prices back at pre-storm levels?

No, they are higher by about 2 cents per kilowatt hour in some cases.

What else should I know?

Provider reviews should play a factor in your decision, too. Check out our provider ratings either in our marketplace (enter your ZIP) or on our provider ratings page.

If you’ve been switched to a provider of last resort, enter your ZIP code on this page to see what else is available.

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