If you’re a Texas homeowner, then you know that finding the cheapest electricity company can be a real challenge. With so many options to choose from, it’s hard to know where to start. But don’t worry—we’re here to help. In this blog post, we’ll break down the things you need to know in Texas so that you can make an informed decision about which one is right for you.
Also, since rates can fluctuate on a daily basis we will also cover the key things you need to know to find the best provider and avoid overpaying. Keep reading to learn more!
Why are there so many electricity companies in Texas?
Texas is one of the states in the USA with a deregulated electricity market. This means that market is open for competition, and you can choose your light company
Light companies are also called retail electric providers (REPs). That is because they buy electricity from generators at wholesale prices and then sell it to you in the retail market.
So, there are hundreds of REPs to choose from, each promising to deliver the cheapest electricity rates in Texas.
So, if you’re wondering who is the cheapest electricity company in Texas, this helpful guide is for you.
Top Three things you know when looking for the cheapest electricity company in Texas.
First, you’ll need to know your average monthly usage.
This is the amount of electricity you use in a month, averaged out over the course of a year. You can find this information on your most recent electricity bill.
Knowing your consumption is key to find the best electricity plans for your home because each electricity plan is different. Here are some common examples:
- Some plans have minimum usage fees.
- There are also plans that charge you higher rates during the day compared to the night.
- Some plans offer free electricity during certain periods of the day or week.
- Other plans renew automatically after your contract expires at a higher price per kWh. You might get a letter in the mail from you company telling you that your plan will be renew. However, you might not notice that it was also a notification of change in price, going up off course.
Second, It’s Not Just Price Per Kilowatt-Hour
While to popular wisdom says to simply look for the cheapest electricity rates.
Based on that, you’ll need to compare rates. Rates are the price you’ll pay for each unit of electricity, and they can vary significantly from one company to the next.
The theory says that to compare rates, you just simply look at the price per kilowatt hour (kWh) for each company. According to this, the lower the price per kWh, the cheaper the company will be.
However, be aware that one thing is advertised rates, and a different one are the effective rates that you end up paying for.
That’s why you will need to understand other charges and fee, which we will cover next.
Third, make sure you consider any additional “hidden” fees or charges that may apply.
Texas Electricity companies can advertise one rate and charge you something else when your bill comes. They also can advertise a lower rate than their competitors without initially revealing that certain conditions need to be met before that rate is unlocked.
There are some common hidden fees that you can expect to find in electricity plans in Texas. These can include things like
- delivery charges, paid to utility companies
- minimum usage fees, and
- early termination fees.
- Customer service call fees
- Payment processing fee
- Disconnection or reconnection fee
Some common hidden fees for prepaid plans include:
- Low balance fees
- Higher kWh rates if your balance falls below a certain limit
Once you’ve taken all these factors into account, you’ll be able to compare apples to apples and choose the cheapest electricity company in Texas for your needs.
How to Find Out What is the Cheapest Electric Company in Texas
The old way of finding out which electric company is the cheapest involved going to one of the government-run websites such as Power to Choose, searching through an endless list of plans, and hoping you found the cheapest electric company.
As you know, those sites will simply ask you to enter your zip code and all show you filters. You can select things like fixed rate plans, renewable energy, and solar energy.
However, Power to Choose and other sites like it also don’t bother to compare plans based on the variations in your energy usage that could trigger all the hidden fee discussed above.
This means they really don’t have a way of knowing if an electricity plan is good for you. with a plan, so there’s no way to be sure if you’re getting the cheapest electric company.
Also because of the limited capabilities, many of those websites insist that a fixed rate electricity plan is always your best option. The truth is that there are not good or bad electricity plans, however not all plans work the same for everyone and now you know why.
So to find the cheapest electricity company for you, it is better to use a smart comparison tool like EnerWisely.
EnerWisely Uses Smart Analytics to Match You with the Cheapest Electric Company
EnerWisely does things differently. We know how complex the deregulated Texas energy market can be, so we created our smart comparison tool to help you find the cheapest electricity supplier.
With EnerWisely, you’re always in control. We’ll start by helping you fetch your electricity consumption history. No worries, you don’t need to buy any new gadgets. This information can be securely accessed via the smart meter that the electric utilities already installed in your home.
Then, we’ll compare the different electricity companies and their plans based on your consumption. Since EnerWisely can analyze the variations in your usage every 15 minutes, it can catch which of the hidden fees would apply in your case.
We’ll check for the cheapest light company that offers usage credits which could lower your bill, as well as energy plans with free nights and weekends that could save you thousands of dollars per year.
To make things really easy, EnerWisely calculates matching scores from 0 to 100 for each plan. The higher the matching score, the better it works for you. In other words, the cheapest that electricity company and plan are for you.
Free Usage Times Can Save You Thousands
Some plans in Texas offer free usage times which can save you thousands of dollars per year on your bill depending on your consumption.
A plan may offer free electricity beginning every night at 8 PM and ending at 6 AM. This is a great opportunity to save money. It will work for you if you already consume most of your electricity during those hours or can shift it accordingly.
However, keep in mind that these plans are often more expensive on a per kWh basis if you use electricity outside the free electricity periods.
When you compare electricity plans using EnerWisely you don’t have to worry about it because the tool calculates how much you use during the day and night. And it does the same for weekdays and weekends.
Meeting Usage Limits Can Mean Saving Money
There are also affordable electricity companies in Texas that offer usage credits for using a certain amount of electricity per month.
These plans work in a similar way to time-of-use plans, where crossing the threshold (limit) of electricity usage will lower your bill. In most cases, companies will place a credit on your bill once you’ve used the minimum amount of electricity during that month.
Most often this limit is around 1,000 kWh. If you’re thinking of switching to a plan with usage limits, make sure you use EnerWisely’s free online tool to estimate your home’s energy usage, know which is the cheapest electric company in Texas, and get the best price.
Know the Cheapest Electric Company in Texas
When somebody tells you that the cheapest electricity company in Texas is Gexa Energy, Reliant, TXU or any other brand now you know better.
There are many factors to consider when shopping for the cheapest electricity company in Texas. However, by taking the time to do your research and compare your options, you can find an electric company that meets your needs and saves you money!
Finding out which is the cheapest electric company in Texas has never been easier.
The best thing to do is to compare using a smart tool like EnerWisely to find the cheapest electric rates near you. Click here to compare and start saving.