Switching Ohio Electricity Suppliers Mid-Contract
Ohio market insight · Buying & contracts
The short answer
You can switch suppliers at any time. Your utility will process a new supplier's enrollment, but the early-termination clause in your old contract still applies. Many commercial contracts price that fee as mark-to-market, which charges roughly what the supplier loses when market prices have fallen below your contract price. That usually cancels out the savings from switching. A mid-contract switch mostly pays when the fee is fixed or capped, or when the contract lets you leave for a defined reason such as closing a site. The switch takes effect on a meter-read date, typically one to two billing cycles after enrollment; AEP Ohio needs the enrollment 12 days before the read. If a supplier fails or loses its certificate, its customers go back to the utility's default service.
This page covers leaving your current supplier. To renegotiate with the same supplier instead, see blend-and-extend. For clauses to check before you sign the next contract, see red-flag contract clauses. For definitions, see the contract terms glossary.
How early-termination fees are calculated
| Structure | How it's calculated | What it means for you |
|---|---|---|
| Mark-to-market | Remaining kWh × (your contract price − current market price for the remaining months), plus any admin fee | The fee is large when market prices have fallen and small or zero when they've risen. Most contracts don't pay you the gain when prices rise. |
| Fixed per remaining month | A set dollar amount × months left | Easy to compute and doesn't depend on the market |
| ¢/kWh on remaining volume | A set rate × remaining estimated kWh | Scales with your size, not with the market |
| Greater-of formulas | The higher of two methods | Usually works out close to mark-to-market |
| Notice-only | No fee with advance notice | Uncommon in custom commercial contracts. Read the offer terms. |
A common misconception, repeated in plenty of older guides, is that a mark-to-market fee is small when prices have fallen. It's the reverse. The supplier bought power for your term at the higher price and would have to resell it at the lower one. The fee recovers that loss.
Break-even math (illustrative)
Assumptions, for illustration only: 10 months remain, 400,000 kWh of remaining usage, a contract price of 10.2¢/kWh, and a new supplier offering 9.0¢ for the same 10 months. The gross savings from switching are 400,000 × 1.2¢ = $4,800.
| Termination terms | Fee | Net result of switching |
|---|---|---|
| Mark-to-market, with market at 9.0¢ | 400,000 × 1.2¢ = $4,800 | About $0 before any admin fee, negative after it |
| Fixed $150 per remaining month | $1,500 | +$3,300 |
| 1¢/kWh on remaining volume | $4,000 | +$800 |
The rule is simple. Switching pays only if the fee is less than (old price − new price) × remaining kWh, with both prices covering the same months and quoted on the same day. Ask your supplier for a written termination quote on the day you collect new offers. A quote from last week is measured against a different market.
If you also plan to sign a longer term with the new supplier, compare that package with a blend-and-extend offer from your current supplier. With a mark-to-market fee, the two often cost about the same in total.
How the switch is processed
- Get the termination quote in writing. Confirm the formula, the date it's valid for, and any admin charge.
- Sign with the new supplier. It sends an enrollment to your utility. You don't need the old supplier's permission, but you owe whatever your old contract says. If that contract requires written notice, send it anyway.
- The utility switches supply at a meter read. That's the next read if the enrollment arrives in time; AEP Ohio requires it 12 days before the read. Otherwise it's the following read, so plan on one to two billing cycles.
- The utility mails a confirmation letter. Small commercial customers have 7 days from the postmark to rescind. Mercantile customers, those using more than 700,000 kWh a year, don't have that right.
- The old supplier is dropped automatically when the new enrollment takes effect. It then bills any termination fee under the contract.
- Check both bills. Look at the old supplier's final invoice and the new supplier's first bill for the right dates, price and supplier name.
The main timing risk is a gap. If the enrollment misses a read after the old contract has already expired, you'll spend a cycle on that supplier's month-to-month price. Write the new start as "first meter read on or after [date]" and allow margin.
If your supplier leaves the market
Ohio law covers this case. If PUCO determines that a supplier has defaulted on its contracts, gone into receivership or bankruptcy, can no longer provide or deliver power, or had its certificate suspended or rescinded, the supplier's customers are returned to the utility's standard service offer (SSO) after reasonable notice. They stay on the SSO until they choose a new supplier (R.C. 4928.14).
What that means in practice:
- Your fixed price is gone. You pay the utility's default price, which resets each June 1 and may be higher or lower than your contract. See the price to compare.
- Delivery is unaffected. The utility still delivers power and reads meters.
- You can re-shop right away. A new supplier can enroll you for the next meter read.
- Keep records. Any claim over the lost contract value goes through the supplier's contract default terms or its insolvency proceeding.
- Watch for assignment. A supplier leaving voluntarily may assign contracts to another supplier. Read the assignment clause and any notice you receive.
To lower the risk, confirm that a supplier appears on PUCO's list of certified companies before you sign, and treat unusually low prices from unfamiliar suppliers with care.
Exits that aren't early termination
Before paying a fee, check whether a different clause covers your situation:
- Facility closure or sale. Many contracts have material-change or closure provisions with their own formula, and some allow assignment to a buyer.
- Moving. Contracts are tied to utility accounts. Closing an account at one address and opening one elsewhere may trigger material-change terms rather than a standard termination fee.
- Supplier breach. Persistent billing errors or failure to send required notices may give you rights under the contract's default section. Document everything in writing.
FAQ
Can I switch electricity suppliers before my contract ends in Ohio?
Yes. A new supplier can enroll your account at any meter read, but your old contract's early-termination fee still applies.
How is an early termination fee calculated?
It depends on the contract. The common formulas are mark-to-market (remaining kWh times the drop in market price), a fixed amount per remaining month, or a ¢/kWh charge on remaining volume. Mark-to-market fees are largest when prices have fallen.
How long does it take to switch suppliers?
The switch happens on a meter-read date, typically one to two billing cycles after the new supplier sends the enrollment. Small commercial customers can rescind within 7 days of the utility's confirmation letter.
What happens if my electricity supplier goes out of business?
If PUCO finds that the supplier has defaulted, lost its certificate or can't deliver power, its customers return to the utility's default service after notice. They can then choose a new supplier at the next meter read.