What a Switch Hold Is
A switch hold is a flag that a retail electric provider (REP) places on your meter through ERCOT, the grid operator that manages most of Texas. When the flag is active, no other REP can take over the account. You cannot shop for a new plan, you cannot enroll with a cheaper provider, and you cannot transfer service to a new address through the normal enrollment process.
The Public Utility Commission of Texas (PUCT) governs the rules for switch holds under 16 TAC Section 25.483. Under those rules, a REP may place a switch hold on a meter only when a customer owes a balance that was established under a deposit waiver tied to a low-income program, such as LITE-UP Texas or the Low Income List Administrator (LILA) program. In plain terms, the hold is not a general collections tool. It applies specifically when a customer received discounted or deposit-waived service based on income status and then left an unpaid balance.
If you owe money to a standard retail provider and never participated in a qualifying low-income program, that provider generally cannot place a switch hold on your meter. They can send your account to collections and report the debt, but they cannot lock the meter to block a transfer. This distinction matters because many customers assume any unpaid electric bill results in a switch hold. That assumption is usually wrong.
Why This Matters for Getting Lights On
If you are trying to start electric service at a new address, or you are trying to get power restored after a disconnect, and you are hitting a wall with enrollment, a switch hold may be the reason. The enrollment system at ERCOT will reject the transfer request automatically when a hold is present.
Before assuming a switch hold is the problem, confirm it. You can call the provider you are trying to enroll with and ask them to look up the meter's status in the ERCOT system. They can tell you within minutes whether a switch hold exists and which REP placed it. You can also contact your previous provider directly and ask for your account status in writing.
How to Get Lights When a Switch Hold Is on Your Meter
There are two realistic paths, depending on your situation.
Path 1: Resolve the balance with the holding provider.
This is the faster path when it is financially possible. Contact the REP that placed the switch hold and ask for the exact balance required to release it. Get this amount confirmed in writing, either by email or through the provider's customer portal. Pay the balance, then ask the provider to submit the switch hold removal to ERCOT. Under PUCT rules, the provider is required to remove the hold within one business day of payment. Once removed, you can enroll with any licensed REP in your area.
Some providers will negotiate a payment arrangement to release the hold rather than requiring the full balance upfront. This is not guaranteed, but it is worth asking, particularly if the balance is large. Document any arrangement in writing before making a partial payment.
Path 2: Apply for service through a provider of last resort (POLR).
If you cannot resolve the balance right away and you need power immediately, Texas law requires that a designated provider of last resort offer you basic electric service regardless of your account history with other REPs. The POLR program exists specifically so that customers are not left without access to electricity. PUCT maintains the current POLR designations by region. As of 2024, Reliant Energy serves as the POLR for most of the CenterPoint service territory, and TXU Energy holds POLR status in much of Oncor's territory.
POLR service typically comes with a deposit requirement, and rates are generally higher than competitive market rates. PUCT rules cap the POLR rate, but it is still advisable to treat POLR service as a temporary bridge while you work toward resolving the switch hold and returning to the competitive market.
To apply for POLR service, call the POLR for your area directly and tell them you are requesting service under the provider of last resort program. They are legally obligated to enroll you.
How to Remove a Switch Hold in Texas
Removing the hold requires action from the REP that placed it. No other party, not ERCOT, not PUCT, and not the new provider you want to switch to, can unilaterally remove it. The process follows these steps:
- Contact the holding REP and confirm the exact payoff balance for the switch hold. Ask them to note the date the hold was placed, since PUCT rules limit how long certain holds can remain active.
- Pay the balance in full, or negotiate and document a written payment arrangement the provider agrees will trigger a release.
- Request written confirmation that the provider has submitted the removal to ERCOT. The provider is required by PUCT to do this within one business day of payment.
- Wait for ERCOT to process the removal, which typically takes one additional business day.
- Re-enroll with your preferred REP once the meter status is clear.
If the holding REP refuses to remove the hold after payment, or fails to submit the removal within the required timeframe, file a complaint with PUCT at puct.texas.gov. PUCT takes switch hold violations seriously and has enforcement authority over licensed REPs.
For a plain-language version of this process written from the customer's side, including how to keep power on while the hold is still active, NoDepositLights' switch hold guide covers the same steps in more detail.
When Switching Is the Wrong Move
If you owe a balance to a provider but your meter does not have a switch hold, you can technically enroll with a new REP. However, switching does not erase the debt. The previous provider can still report the balance to credit bureaus and refer it to a collection agency. Some providers also share delinquency data through a utility credit database, which may affect the deposit you are required to pay with your next REP.
For customers whose unpaid balance is small (generally under $50), resolving the debt before switching is almost always the cleaner path. For larger balances, it is worth understanding how the debt will follow you before making the switch.
What Providers Can Charge as a Deposit After a Switch Hold
Once a switch hold is cleared, you will likely need to pay a deposit when enrolling with a new REP. Under PUCT rules, a REP may charge a deposit of up to twice your estimated average monthly bill if your credit history warrants it. For an average Texas household using around 1,150 kWh per month (EIA, 2023 state average) at a rate of roughly 13 to 15 cents per kWh, a deposit could fall in the range of $290 to $345.
Deposits must be returned with interest after 12 consecutive months of on-time payment, or when you close the account in good standing. REPs are required to pay interest on deposits at the annual rate set by PUCT, which was 4.5 percent as of 2023.
If a deposit is a barrier, ask the new REP about deposit alternatives. Some accept a co-signer, a letter of credit from a previous utility, or enrollment in autopay as substitutes.
The Short Version
A switch hold blocks meter transfers. It is placed by a REP when a low-income program account is left unpaid. To get lights on, either pay the balance to release the hold, or enroll through the provider of last resort for your area. Once the hold is cleared, the ERCOT system opens back up and you can shop the competitive market normally. Document every step in writing, and file with PUCT if a provider fails to follow the required timeline.