Survey: 50% of Texans stay with electricity provider because switching felt too difficult

Home > BKV Energy Blog > All Posts > Survey: 50% of Texans stay with electricity provider because switching felt too difficult

Difficulty of switching Texas electricity providers survey details

Shopping for electricity providers in Texas seems to be an increasingly difficult task.

After all, there are over 100 providers in the marketplace, each offering dozens of plans. That means there are thousands of electricity plans to choose from. To make things even more overwhelming, there are an intimidating number of shopping websites to browse.

Our survey found that just over 50% of Texans have stuck with an electricity provider because switching felt like too much work.

Given the current state of the residential electricity marketplace in Texas, this result is not surprising. However, it is alarming that there are potentially millions of Texans who are overpaying for electricity because the idea of researching and selecting a new provider or plan is too much work.

In this article, we’ll dig into the results of our survey of 969 Texans living in deregulated ERCOT markets that self-identify as owning or sharing the responsibility of shopping for power to learn more about how Texans shop (or don’t shop) for power.

Key takeaways

We asked Texans, “Have you ever stuck with an electricity provider because switching felt like too much work?” Here’s what we discovered:

Our survey found that 50.21% of Texans have stuck with an electricity provider because switching felt like too much work. 45.65% indicated that they have not stuck with a provider because switching felt like too much work. 4.14% responded that they did not know.
Texans aged 30-44 were the age group most likely to indicate that switching felt like too much work at 56.15%, followed by 18-29 at 54.63%, and ages 45-60 at 49.62%. Texans aged 60 and up were the least likely to indicate that switching providers felt like too much work at only 35.56%.
Texans with higher household incomes were more likely to indicate that switching providers feels like too much work. Those with household incomes between $175,000-$199,000 responded “Yes” 64.52% of the time. Texans with household incomes $200,000 or higher responded in a similar manner 62.07% of the time.
On the other end of the household income spectrum, Texans were less likely to stick with a provider. Texans with household income between $50,000-$75,000 responded “Yes” just 46.84% of the time, and in the next bracket between $75,000-$100,000, they responded “Yes” 45% of the time.
There is a clear trend in our data that shows the higher the income, the more likely they were to indicate that switching felt like too much work.

How often do Texans switch electricity providers?

We also asked our respondents how often they switch providers. The majority of Texans answered that they rarely switch electricity providers.

Several times per year: 6.21%
About once per year: 11.90%
Less often than once per year: 21.33%
I rarely switch electricity providers: 60.56%

These results are consistent with our earlier findings. If 50% of Texans have stuck with a provider because they found switching too much work, it tracks that 60% are reporting that they rarely switch providers.

When asked to quantify how long Texans had been with their current electricity provider, the data continues to support our findings. Here are the results of the question “How long have you been with your current electricity provider?”

1-6 months: 7.14%
6-12 months: 11.18%
1-2 years: 22.77%
2-5 years: 27.74%
5-10 years: 15.01%
10+ years: 16.15%

So, Texans are sticking with providers because switching is too difficult, they rarely switch providers, and 58.9% have been with their current provider for between 2-10 years.

Looking at the data by age bracket, we find that younger Texans are switching providers more often. 48.82% of Texans aged 18-29 responded that they rarely switch providers compared to 75% of Texans aged 60 and up, while 8.66% of those aged 18-29 indicated they switch several times per year compared to 0% of Texans aged 60 and older.

The trend carries over to the length of time respondents have been with their current provider. By age group, here’s the percentage of Texans who have been with their current provider for 2 or more years.

18-29: 38.59%
30-44: 52.14%
45-60: 64.4%
60+: 78.33%

The data clearly shows that the older the Texan, the less likely they are to switch and the longer they stick with their provider.

Why aren’t Texans switching electricity providers?

The findings of our survey allow us to draw a few conclusions.

Younger Texans may be more likely to switch providers more often because they have lower levels of homeownership. Younger renters are also more likely to move often. Moving is a common time to switch electricity providers in Texas.

Older Texans may be more likely to stick with a provider for the opposite reasons. They are more likely to own a home. When you own your home, it may be easier to renew your electricity plan with your current provider, instead of putting in the work to find a new plan or provider.

Age isn’t the only factor influencing whether a Texan is likely to switch providers or find switching to be too much work.

Texans earning $175,000 or more were the most likely to find switching to be too much work. Is there potential that because electricity bills are easier to afford for higher-income earners, they find it unnecessary to look for a cheaper option?

On the opposite end of the income spectrum, the data suggests that lower-income homes are more likely to switch because they are seeking savings on their electricity bills.

Ultimately, the survey suggests that while many Texans could shop around, they don’t believe the time and effort put into switching are justified by the reward.

How BKV Energy is working to make switching providers worth the effort

This reluctance to switch providers is exactly what BKV Energy is working to change.

Our flagship electricity plan, Bluebonnet, is designed to eliminate the frustrations many Texans experience when shopping for power. It’s a simple plan that rewards you for sticking around. Why stick with your old provider that complicates things with lots of fine print?

The Bluebonnet plan is free of base charges, usage fees, setup fees, bundle fees, misleading bill credits, and confusing time-of-use terms. At the same time, Texans can enjoy access to BKV Energy Plus benefits at no cost:

Reduce Your Rate: Mid-contract rate reduction opportunities
ElectroShare: Annual loyalty payout tied to customer tenure
VoltPoints: Monthly reward points that can be used to win gift cards, laptops, smart TVs, and more

Switching to BKV Energy is easier, and it’s worth it.

Written by Graham Lumley

Graham Lumley, Digital Marketing Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 8 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.