What is the Cheapest Electricity Company in Texas?
The world of electricity in the state of Texas is a competitive market where capitalism abounds. There are hundreds of energy companies in Texas offering thousands of different plans, and it can be challenging to find the plan that’s best for you. In terms of who the cheapest electric company in Texas is, it all depends.
With so many different REPs or Retail Energy Providers in Texas, many offer similar and competitive plans. A company that has the cheapest electricity today might have the most expensive tomorrow. Energy is a volatile and competitive market, and it would be wise to remember that when you choose your electric plan.
How Does Deregulation Affect Choosing an Energy Plan?
In 2002, Texas became a state where the energy field is deregulated. That means that people are free to choose which company and which plan they want to work with. Most states don’t have deregulation, which means that you’re stuck with whatever company the government sticks you with.
Deregulation in Texas turned the electrical industry into a competitive market. Private companies started popping up left and right, each one trying to offer better deals than everyone else. Because of deregulation, choosing the right energy plan has become highly competitive and challenging.
The Devil is in the Details When It Comes to Your Energy Plan.
One of the biggest things to remember when choosing the “cheapest” energy plan is to read your contract details. The company that offers the lowest upfront price on your kWh isn’t always the cheapest in the long run. Or even in the short run, for that matter, and here’s why.
Watch Out for Hidden Fees in Your Contract
One of the most significant ways that electrical companies make their money is through hidden fees. Hidden fees are exactly what they sound like, fees that you don’t know about until you’re forced to pay them. If you read the fine print in your companies terms of service agreement section, you can avoid hidden fees. Here are some of the most common hidden fees that people run into.
Power Companies Aren’t Obligated to Inform You of Price Increases
With your TV or internet bill, you might have noticed that you end up paying more after the first year of your contract. Power companies do the same thing with their contracts. Let’s say that you sign up for a contract that advertises itself as costing 10 cents per kWh for the first year of service. What they often include in the finer print is that the price jumps to 13 cents per kWh after your first year is complete.
If you pay attention to the contract you’re signing up for, you can catch these increases ahead of time. It would be cheaper for you to sign up for a contract that offers energy at 11.3 cents per kWh over a three-year term. You pay more money in the first year of your contract but pay less in the next two. Overall, this is cheaper than signing the contract with a more affordable first year.
Pay Attention to the Incremental Increases in Price According to Use
Many contracts have hidden stipulations on one of their dozens of pages that you’re supposed to read through when you sign up. One of these stipulations is that you pay less for your electricity the more you use it. Here’s how the overall picture looks.
|Company Name||Price per 500 kWh||Price per 1000 kWh||Price per 2000 kWh|
|Swindlers Electric||20 cents per kWh||13 cents per kWh||10 cents per kWh|
In the scenario above, you’ll notice that your energy costs go down based on how much you use. So, you might think that you’re saving money by using less electricity each month. Unfortunately, you couldn’t be more wrong. You pay considerably more money if you use 700 kWh per month than if you use 1,000 kWh per month.
If you inspect your contract enough, you’ll see this trick that companies play. Because most rates are based on using 1000 kWh per month, most companies will only show that price. They don’t hold back the other information, they simply make it harder to access.
Factors to Keep in Mind When it Comes to Electricity.
The most important thing to remember with electricity and choosing the cheapest company is that electricity prices are volatile. What this means is that they’re constantly changing and increasing or decreasing based on the market. If you sign up for a fixed-price contract, then that doesn’t affect you. However, if you have a variable-price contract, you might pay 5 cents per kWh one month and 15 cents per kWh the next.
In the table listed above, knowing how much energy you use would be vital. If you know that you’re going to use at least 1,500 kWh of power each month, then the contract isn’t a big deal. If, however, you use a limited amount of energy, signing up for that contract is a terrible idea.
How to Choose the Cheapest Electricity Company for Me.
When it comes to electricity, everyone wants to save money without sacrificing service and quality. EnerGenie is a service that does both of these things with ease. All you have to do is contact us or visit our website to get started. We use a series of algorithms based on your location, needs, and budget to find you the cheapest electricity possible.
EnerGenie keeps hidden fees, terms of service, and price increases in mind when finding the right deal for you. We’ll find you the best value for short-term savings as well as long-term savings!
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