What a Switch Hold Is
A switch hold is a flag placed on your meter's ESI ID by the transmission and distribution utility (TDU) at the request of a retail electric provider (REP), and it blocks switch and move-in transactions in the market registration system run by 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 25.480, and meter-tampering holds are handled by the TDU under 16 TAC Section 25.126. Under those rules, a REP may place a switch hold when a customer agrees to a deferred payment plan on a past-due balance and has not yet met that obligation. Separately, a TDU may place a switch hold when it determines that meter tampering or theft of service occurred at the location. In plain terms, the hold is not a general collections tool. It is tied to a payment plan the customer agreed to, or to a tampering finding on the meter.
Any retail provider can place a switch hold once you enter a deferred payment plan on a past-due balance, regardless of your income or program participation. But if you simply have an unpaid bill, with no payment plan and no tampering finding, 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 must submit the removal request to the TDU within one business day, and the TDU must remove the hold by 8:00 p.m. the same business day when it receives the request by 1:00 p.m. 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: If the debt is not yours, file a New Occupant Statement.
A switch hold follows the meter, not the person, so a new tenant or owner can be blocked by a previous occupant's unpaid balance. If the debt is not yours, submit a New Occupant Statement to the company holding the meter, along with a lease or deed and a photo ID, and ask for the hold to be removed. Understand that while a hold is active you cannot enroll with any other REP, including a provider of last resort or a prepaid provider, so there is no way to enroll around it.
Providers each have their own New Occupant Statement form, and most accept a lease, deed, or closing document as proof of residency. Expect the company to verify the documents before it submits the removal request, so start this step as early as you can before your move-in date.
If the hold was placed in error, or the company refuses to accept valid New Occupant documents, file a complaint with PUCT and ask the TDU that serves the meter to review the hold.
How to Remove a Switch Hold in Texas
Removing the hold requires action from the REP that placed it. The REP that requested it has to submit the removal request, the TDU is the party that actually removes it, and the new provider you want to switch to cannot clear it for you. The process follows these steps:
- Contact the holding REP and confirm the exact payoff balance for the switch hold. Ask them to note the exact obligation that must be satisfied, since a switch hold does not expire on its own and stays in place until that obligation is met.
- 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 request to the TDU. The provider is required by PUCT to do this within one business day.
- Wait for the TDU to process the removal, which by rule happens by 8:00 p.m. the same business day when the request arrives by 1:00 p.m., though in practice allow one to two business days after your payment clears.
- 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 rule 16 TAC Section 25.478, a residential deposit may not exceed the greater of one-fifth of your estimated annual billing or the sum of your estimated billings for the next two months, and a REP may require one if your credit history warrants it. For an average Texas household using around 1,096 kWh per month (EIA, 2024 state average) at a rate of roughly 13 to 15 cents per kWh, the one-fifth-of-annual-billing ceiling puts a deposit in the range of roughly $340 to $395.
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 PUCT sets each December for the following year under Texas Utilities Code Section 183.003, so check the current published rate.
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 deferred payment plan balance goes unmet, or by the TDU after a meter tampering finding. To get lights on, either pay the balance to release the hold, or, if the balance belongs to a previous occupant, clear it with a New Occupant Statement. 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.