In 2025 and 2026 very few companies dominated the ranking of cheapest fixed rates in the Texas electricity market. True Power, Budget Power and a few others. However, there is one complaint they have in common. Google reviews, Yelp and BBB usually contain reviews mentioning that the company sold their contract to a different provider. They do notify the customer, and if he is lucky enough to check it, he will need to set up a new account with the company the contract was just transferred to, causing discomfort and a risk of missing the notification and having the service interrupted.
Is this legal in Texas? Yes. Under Texas rule 16 TAC §25.493, a retail electric provider can transfer your account to another REP through a sale or merger without your permission and without advance approval from the PUCT. You must be notified in writing before the transfer, and if your terms get worse, you can leave without paying an early termination fee.
Is this legal in Texas? Yes. Under Texas rule 16 TAC §25.493, a retail electric provider can transfer your account to another REP through a sale or merger without your permission and without advance approval from the PUCT. You must be notified in writing before the transfer, and if your terms get worse, you can leave without paying an early termination fee.
What companies have a record of this practice in 2025 and 2026?
It is difficult to find an exact number of how many customers have been moved by any company lately. However, after checking the reviews on several platforms including Google, this is the list of companies that at some point have sold customers to another company:
- True Power sold books of contracts. Four Google reviews mentioned it in 2026, most of them moved over to SFE Energy. True Power has been leading the cheapest energy plans in Texas for a while, and even though four reviews is not a large batch of complaints, the company has done it recently, so if you sign up with them there is a small possibility that it happens again. KPRC investigated the practice: https://www.click2houston.com/news/local/2026/04/02/has-your-texas-electric-provider-sold-your-account-to-another-company/
- Budget Power transferred customers to Direct Energy. Only one Google review was found mentioning this. Energy Choice Matters also reported that a group of Budget Power residential customers would move to Direct Energy, and KPRC reported that NRG, the parent company of Direct Energy, bought another book of Budget Power customers in March 2026. So they are still doing it. It is worth noticing that they usually sell customers to Direct Energy, and this is a double edged sword. First, Direct Energy customer service is usually ranked better and they have a nice working app. On the downside, it is probably best for you to swap to another company at the end of the contract. It is very unlikely that they offer you a better or equal deal than the one you had with Budget.
- Varsity saw an increase of negative reviews at the end of 2025, also transfers to Direct Energy.
As a customer, what should you be afraid of with this practice?
- Missing the notification. You will automatically be switched over to the other company, with the risk of a missed payment and a disconnection charge if you don't set up your account with them in time. They are supposed to let you know in advance, so always keep the communication channels open.
- Be ready to switch to a different company at the end of the contract. It is very possible they won't offer you a better deal, and when your contract expires you will need to shop around again.
Why you should not be afraid:
- The grid has been more predictable in 2026. The rise of batteries in Texas has allowed more stabilization of the grid, and we haven't had tragic events like the 2021 cold front or a major hurricane, so these budget companies are playing with less uncertainty and can balance their books more efficiently.
- The company that buys the contract needs to honor it. If they don't, you can cancel the contract without penalty.
Conclusion
This problem is almost entirely focused on the cheapest companies in the market. Unfortunately, these companies also usually have more complaints than the PUCT average, they are cheap for a reason, and that reason includes limitations on customer service. It is also worth remembering that the top 10 plans are usually very close to each other. If you compare the cheapest electricity rates in Dallas, you will see the gap between the first and the tenth plan is small, so if this matters to you, you can avoid these companies and still end up with a similar deal from a provider with a better track record. On the bright side, remember that the retail provider is not in charge of putting electricity in your house, they collect the bill, and as long as you pay on time or set up autopay, you shouldn't need customer service too much.