Most utility transfers cost nothing, but you may pay reconnection fees, deposits, or early termination charges
Transferring utilities to your name when you move into a new home is usually free. The utility company does not charge you to switch the account from the previous owner to you. However, you may face other costs: a reconnection fee if the service was shut off, a deposit if you have no credit history with that utility, or an early termination fee if you cancel service at your old address before your lease or contract ends.
The actual cost depends on which utilities you are transferring, your location, and your payment history. A reconnection fee for electricity or gas might run $50 to $150. A security deposit for a new account can range from $100 to $300 or more, though many utilities waive it if you have good credit or a history with them. If you break a contract early—say, you signed a two-year rate lock and move after one year—you could owe $100 to $500 or more, depending on the terms.
Key Takeaways
- Transferring an account from one person to another costs nothing with most utilities, but reconnection fees and deposits can add $100 to $500 to your moving costs.
- Reconnection fees apply when service was shut off at the property; they are separate from the transfer itself and vary by utility and region.
- Security deposits are common for customers with no history with that utility or poor credit, and you may reclaim the deposit after you establish good payment history.
- Early termination fees apply only if you signed a contract (usually for a rate discount) and cancel before the term ends; month-to-month service has no early exit cost.
- Calling the utility company 2 to 4 weeks before you move lets you lock in a transfer date and ask about deposits or fees before moving day.
Reconnection fees when service was shut off
If the previous owner let the utility lapse or the company shut off service for non-payment, you will likely pay a reconnection fee to turn it back on. This fee covers the cost of a technician visiting the property to restore service. For electricity, gas, or water, reconnection fees typically range from $50 to $150, though some utilities charge more in rural areas or for after-hours service.
You can ask the utility company whether service is currently active before you move. Call with the property address and ask them to check the account status. If service is off, ask what the reconnection fee is and whether it applies to a new account holder (you) or only to the previous owner. Some utilities will waive the fee if you are a new customer, but this varies by company and region.
Security deposits for new accounts
A security deposit is money the utility holds to cover the risk that you will not pay your bills. It is not a fee—you get it back—but it is cash you have to provide upfront. Most utilities require a deposit if you have no account history with them, have poor credit, or have a record of late payments with any utility company.
Deposit amounts vary widely. Electricity deposits might be $100 to $300. Gas deposits are often similar. Water and sewer deposits tend to be smaller, sometimes $50 to $150. Some utilities base the deposit on your estimated monthly bill; others use a flat amount. After you make on-time payments for 12 to 24 months, you can request that the utility return the deposit. Some companies return it automatically; others require you to ask.
If you have established credit or a history with the utility company (for example, you had an account with them at a previous address), you may not need a deposit at all. It is worth asking when you call to set up your account.
Early termination fees from rate contracts
Early termination fees apply only if you signed a contract with your utility—usually to lock in a lower rate for a set period, often two or three years. If you move and cancel that contract before it ends, the utility may charge you a penalty. These fees can range from $100 to $500 or more, depending on how much time is left on the contract and the utility's terms.
Most month-to-month utility service has no early termination fee. You can cancel whenever you want. But if you took advantage of a promotional rate or signed a fixed-rate agreement, check the contract before you move. If you are locked in and moving before the term ends, ask the utility whether you can transfer the contract to your new address instead of canceling it. Some companies allow this; others do not.
How to minimize costs when transferring utilities
Start by calling each utility company 2 to 4 weeks before your move. Provide the new address and ask them to set up an account transfer or new account. At that time, ask directly: "Will there be a reconnection fee?" "Do I need to pay a security deposit?" "Am I under any contract that would charge me to cancel?" Getting these answers in advance means no surprises on moving day.
If you are asked to pay a deposit and believe you should not have to, ask the utility to review your credit or payment history. Provide proof of on-time payments at your previous address if you have it. Some utilities will waive or reduce the deposit based on this information. If the utility refuses and you believe it is unfair, you can file a complaint with your state's Public Utilities Commission, though this takes time and may not reverse the decision before you move.
For early termination fees, ask whether the utility will let you transfer the contract to your new address. If not, weigh the cost of the fee against the savings from the rate lock. If you have only a few months left on the contract, paying the fee might cost less than canceling and paying market rates at your new place.
Costs that are not utility transfer fees
Do not confuse utility transfer costs with other moving expenses. If you hire a plumber to inspect the water line or an electrician to check the panel, those are service calls, not utility fees. If you pay to have your gas line inspected for safety before you move in, that is a home inspection cost, not a transfer cost. Some lenders or inspectors require these checks, but the utility company does not charge for them.
Similarly, if you are moving to a new area and the utility company does not serve your new address, you will need to switch to a different provider. That is a new account, not a transfer, and may have its own setup costs. Check whether your new address is served by the same utility before you move.
Frequently Asked Questions
Can I transfer utilities before I close on the house?
No. Utilities are tied to the property address and the account holder's name. You cannot set up an account in your name until you own or have a lease for the property. Most utilities require proof of ownership or a signed lease before they will open an account. Plan to transfer utilities after closing or after your lease begins, ideally 1 to 2 weeks before you move in.
What if I move and forget to cancel utilities at my old address?
You will continue to be billed. Call the utility company as soon as you realize the mistake and ask for a final bill. Most utilities will backdate the cancellation to your move date if you call within a few days. If you wait weeks or months, you may owe for service you did not use. Some utilities will not refund charges after a certain period has passed.
Do I have to pay a deposit if I have good credit?
Not always. Many utilities waive deposits for customers with good credit scores or a history of on-time payments. When you call to set up your account, ask whether a deposit is required and whether they will waive it based on your credit. If they say no, ask what you need to do to have it waived later.
Can I negotiate the reconnection fee?
Reconnection fees are usually set by the utility company and are not negotiable. However, you can ask whether the fee applies to you as a new account holder or only to the previous owner. Some utilities will waive it for new customers. It does not hurt to ask, but expect the answer to be no.
What happens if I do not pay a utility deposit?
The utility company will not open an account without it. If you cannot pay the deposit upfront, ask whether the company offers a payment plan or whether you can pay it in installments. Some utilities will allow this. If not, you may need to delay your move or find another solution, such as having a family member open the account temporarily.