What is a Switch Hold?

Switch holds are restrictions placed on electric meters that prevent customers from switching electricity providers. These statuses are meant to protect electricity companies from unpaid debts and prevent customers from avoiding their payment obligations simply by switching providers.

If a switch hold has been applied to your account, you cannot switch providers until it has been removed.

There are two reasons a switch hold would be placed on a meter:

The TDU (transmission and distribution utility) has determined that the meter has been tampered with or theft of electricity services has occurred at the property. Tampering with your regional TDU’s meter to attempt to receive unbilled electricity is illegal.
If a customer has an unpaid balance or has entered a deferred payment plan with their electricity provider, a switch hold may be placed on the account. This prevents the customer from switching providers until the unpaid balance has been resolved.
When someone moves into a new residence, they may encounter a switch hold if the previous occupant leaves an unpaid balance.

How to remove a switch hold

There are two ways to have a switch hold removed.

If you are the occupant with an unpaid balance on your account, you must pay off that balance to have the switch hold status revoked. Once the balance is paid, you can switch to a new provider and plan.

If you are the new occupant of a residence that has a switch hold status from the previous tenant, you can request a New Occupant Statement (NOS) form from the electricity provider. The NOS document allows you to prove that you are a new tenant who has nothing to do with the previous tenant’s switch hold. In addition to filling out this form, you may also be asked to provide:

Copy of your signed and dated lease proving that you have just moved in
Notarized statement from the landlord
Electric bill in your name from within the last two months from your previous address

How to dispute a switch hold

If you believe a switch hold regarding meter tampering or electricity theft has been wrongly applied to your residence, you must contact your regional Transmission and Distribution Utility company (TDU).

Oncor: 888-313-6862
CenterPoint: 800-332-7143
Texas-New Mexico Power: 888-866-7456
AEP North: 877-373-4858
AEP Central: 877-373-4858
Lubbock Power & Light: 806-775-2509

If you wish to dispute a switch hold applied by your current or previous electricity provider related to an unpaid balance or deferred payment plan, contact that electricity provider.

What happens if you don’t pay off your balance?

If you fail to meet the obligations of your unpaid balance or deferred payment plan, your electricity provider may choose to disconnect your electricity services. According to the Public Utility Commission of Texas (PUCT), electricity providers are allowed to disconnect your service for any of the reasons below:

You did not pay the bill by the disconnection date
You did not meet the obligations of your deferred payment plan
You did not pay the deposit

In the case of service disconnections, there are rules to protect consumers as well:

Providers must offer a 10-day notice before disconnecting
Providers must offer a deferred payment plan if you are unable to pay the full unpaid balance at once
Providers must offer information regarding organizations that assist with bill payment
Providers will not disconnect your services over the weekend

Can you switch providers if you have an outstanding balance?

Switch holds are not applied immediately once you have an unpaid balance with an electricity provider. If you’ve been in debt for 28 days or less, you may still switch providers and the unpaid balance will be applied to your final bill.

However, it is worth mentioning that when switching providers, you may need to pay a deposit to start services with the new company. This may only make it more difficult to pay off your electricity debt.

Written by Graham Lumley

Graham Lumley is the Growth Product Manager at BKV Energy, a retail electricity provider in Texas' deregulated market, where he has worked since 2023. He analyzes customer usage and billing data, helps develop BKV's fixed-rate plans, and creates tools to simplify Texas electricity shopping. He has written over 200 articles on Texas electricity rates, delivery charges, plan types, energy generation, and more to help Texans understand their bills and pay less. With over 10 years of experience in consumer products, marketing, and energy, he explains the Texas electricity market in plain language.