ERCOT Switch Hold: Everything You Need to Know

An ERCOT switch hold is a block on your Texas light service record that prevents any light company from signing you up — and it stays until the debt is resolved. You try to sign up for lights at your new address. The company says they can’t serve you. You try another company. Same answer. Something is blocking you, and nobody will tell you what.

It’s probably a switch hold. Here’s what’s happening and how to fix it.

What Is ERCOT?

ERCOT (Electric Reliability Council of Texas) runs the Texas power grid. They don’t sell you electricity — they’re the operator behind the scenes that makes sure power flows from generators to your home.

ERCOT also maintains a registration system that tracks which light company serves which meter. When you switch companies, ERCOT processes that change. And when a light company reports that you owe them money, ERCOT can place a flag on your record called a “switch hold.”

What Is a Switch Hold?

A switch hold is a block placed on your ERCOT record by a light company you owe money to. It prevents you from switching to or signing up with any other light company until the debt is resolved.

How it works:

1. You owe money to Light Company A
2. Company A reports the unpaid debt to ERCOT
3. ERCOT places a switch hold on your record
4. You try to sign up with Light Company B
5. Company B checks ERCOT, sees the hold, and can’t complete your enrollment

The hold isn’t a credit score thing. It’s a specific flag in the ERCOT system that only Texas light companies can see when they try to register you for service.

How You End Up With a Switch Hold

The most common paths:

• Unpaid final bill — You moved, didn’t pay the last bill, and your old company reported it
• Post-eviction balance — You were evicted and the light bill was the last thing on your mind
• Disconnection for non-payment — Your lights got cut off, you never paid, and the company eventually dropped you and flagged your record
• Early termination fee — You broke a contract, got charged a termination fee, didn’t pay it

Not every unpaid light bill results in a switch hold. The company has to actively report it to ERCOT. Some companies are more aggressive about this than others. Some give you months before reporting; others file within weeks.

How to Check if You Have a Switch Hold

There’s no public ERCOT portal where you can look this up yourself. But there are a few ways to find out:

Method 1: Try to sign up for service

The fastest (if most frustrating) way. If you try to enroll with a light company and they say you’re blocked, you have a switch hold. They should also be able to tell you which company placed it.

Method 2: Call your old light company

If you know you owe money to a specific company, call them and ask: “Have you placed a switch hold on my ERCOT record?” They’re required to tell you.

Method 3: Use our deposit checker

Our deposit checker tool can help you see what’s available at your address. If nothing comes back or companies are flagging issues, a switch hold may be the reason.

Method 4: Call ERCOT directly

You can call ERCOT’s customer service line and ask about your record. They can confirm whether a hold exists and which company placed it.

How to Remove a Switch Hold

Option 1: Pay the balance (Fastest removal)

Pay what you owe to the company that placed the hold. Once they confirm payment, they notify ERCOT to remove the flag.

Timeline: The hold is usually removed within 1-3 business days after the company confirms payment and submits the removal request to ERCOT. Some companies process it same-day; others take the full 3 days.

Negotiation tip: If the balance is large, call the company and ask about a settlement. Many will accept 50-70% of the total if you pay it in one lump sum. The important thing is getting them to agree to lift the hold. Get the agreement in writing before you pay.

Option 2: Set up a payment plan

Some light companies will remove the switch hold once you set up an official payment plan, even before you’ve paid the full balance. Not all companies do this, but it’s worth asking.

Option 3: Dispute the debt

If you believe the charges are wrong — you were billed after you moved out, the amount includes charges that aren’t yours, or you already paid — you can dispute it.

Start with the light company directly. If they won’t resolve it, file a complaint with the PUCT (Public Utility Commission of Texas) under PUCT §25.493. Our Texas electricity rights guide explains the complaint process.

While a dispute is active, the company may or may not lift the hold. But filing with the PUCT puts pressure on them to resolve it.

The New Occupant Exception

This is the most important exception to know about. If you’re moving into an address where you’ve never had service before, you may qualify as a “new occupant” on that meter — even if you have a switch hold.

The idea is that the hold is tied to a previous address. A new occupant at a new address shouldn’t be blocked from getting lights at a place they’ve never lived before.

What you’ll need:

• Proof of occupancy at the new address (signed lease, utility bill, official mail)
• Valid government ID
• The new address and meter number (your landlord should provide the meter number)

Not every light company handles the new occupant process the same way. Some are more flexible than others. If the first company says no, try another.

Prepaid and Switch Holds

Here’s the good news for people stuck with a switch hold: prepaid light companies often handle switch holds differently. Because prepaid plans don’t use the same billing infrastructure as post-paid companies, some prepaid options can get your lights on even with an active hold.

This isn’t guaranteed — it depends on the company and the specific situation. But prepaid is often the fastest path to getting lights on when a switch hold is blocking traditional service.

Check out our prepaid guide or use our same-day finder to see what’s available.

Common Myths About Switch Holds

Myth: “Switch holds expire after a certain time.” False. A switch hold stays on your ERCOT record until the company that placed it asks for it to be removed. That only happens when the debt is resolved. There’s no automatic expiration.

Myth: “Filing bankruptcy removes a switch hold.” Not necessarily. Bankruptcy may discharge the debt, but the switch hold in ERCOT’s system is a separate thing. You may need to provide your bankruptcy documentation to the light company and ask them to request removal from ERCOT. Read our guide on getting lights after bankruptcy for the full process.

Myth: “Moving to a new address clears the hold.” The hold follows you, not the address. It’s tied to your identity in ERCOT’s system. Moving doesn’t clear it (though the new occupant exception may help — see above).

Myth: “Only one company can see the hold.” Every light company that checks your enrollment through ERCOT can see it. You can’t just try a different company and hope they don’t notice.

Myth: “Prepaid is always blocked too.” Not always. Some prepaid companies can work around switch holds. It’s worth checking — see our prepaid options.

The Bottom Line

A switch hold is frustrating, but it’s not permanent and it’s not a dead end. You have options:

1. Fastest option: Pay the balance (or negotiate a settlement) and the hold is removed in 1-3 days.
2. Immediate lights: Try prepaid — some companies can bypass the hold.
3. New address: The new occupant exception may apply if you’re moving somewhere you’ve never lived.
4. Wrong charges: Dispute the debt through the company or the PUCT.

Don’t let a switch hold keep you in the dark. For the full breakdown, read our in-depth switch hold guide, or check what’s available at your address right now.

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Related reading:

• How to Get Your Lights On After an Eviction in Texas
• Light Company Won’t Turn On Your Lights? Here’s What to Do
• What Happens When Your Lights Get Cut Off in Texas

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This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).