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Why does TXU Energy have cancellation fees?

When you sign up for a price-protected plan, you get the peace of mind that no matter what happens to the price of energy during the course of your term, your rate is guaranteed.* Essentially, we purchase the power for your plan in advance so we can guarantee your price for the full contract term. If you decide to cancel your plan before your term expires, we're left with electricity that we've already paid for. Cancellation fees help electricity providers offset the loss when customers break their contracts.

However, TXU Energy won't charge you a cancellation fee if you have to cancel due to certain special circumstances like the loss of a home due to natural disasters or moving to a new home.

*The only circumstance in which the price could change during the minimum term is to reflect actual changes in law or regulatory charges as described in the Electricity Facts Label (EFL).