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What to Ask about a Company’s Power Prices

November 7, 2013
by admin

In the state of Texas, where energy deregulation has led to a competitive electricity market, it is essential for businesses to make informed decisions about their power provider. The price of electricity plays a vital role in determining operational costs, and understanding the factors that influence power prices is crucial for optimizing a company’s energy expenses. To ensure the best possible deal, it is important for businesses to ask pertinent questions before selecting an electricity supplier. We will provide an insights into what questions businesses in Texas should ask when considering a company’s power prices.

What are the different types of power plans available?

Understanding the various types of power plans available is essential when assessing a company’s power prices. In Texas, electricity providers offer a range of options such as fixed-rate plans, variable-rate plans, and indexed plans. Fixed-rate plans provide stability by locking in a consistent price for the duration of the contract, whereas variable-rate plans may fluctuate depending on market conditions. Indexed plans are tied to a specific index, such as natural gas prices, and can change accordingly. It is important to inquire about the pros and cons of each plan type to determine which one aligns with your business needs and risk tolerance.

What are the current electricity rates?

Before committing to an electricity supplier, it is essential to inquire about their current electricity rates. Rates can vary significantly between different providers, and understanding the pricing structure is vital for budgeting purposes. Businesses should ask for a breakdown of the rates, including the base rate, any additional fees or charges, and whether the rates are fixed or variable. Fixed rates offer stability and protect against price fluctuations, while variable rates can provide flexibility but may expose businesses to market volatility.

What is the contract term and are there any early termination fees?

The contract term is another vital aspect to consider when evaluating a company’s power prices. Companies in Texas typically offer contract terms ranging from short-term agreements to multi-year contracts. Short-term agreements provide flexibility but may result in higher rates, whereas long-term contracts can offer more stable pricing. Additionally, it is important to inquire about any early termination fees associated with the contract. Understanding the penalties for terminating a contract prematurely can help businesses make informed decisions and avoid unexpected costs.

How does the company handle demand charges?

Demand charges can significantly impact electricity costs for businesses, especially those with high energy consumption. It is important to ask how the company calculates and handles demand charges. Inquire about peak demand periods, demand response programs, and any strategies to minimize demand charges. Some suppliers offer tools and technologies to help businesses monitor and manage their energy usage effectively, which can result in significant cost savings.

Does the company offer renewable energy options?

Sustainability and environmental responsibility are increasingly important for businesses. Inquire whether the electricity supplier offers renewable energy options, such as wind or solar power. Many companies strive to reduce their carbon footprint, and choosing a supplier that aligns with their sustainability goals can be advantageous. Additionally, renewable energy options may come with incentives or tax credits, providing further cost benefits for businesses.

Are there any additional services or value-added benefits?

Beyond competitive prices, some electricity suppliers offer additional services or value-added benefits. These may include energy management tools, energy efficiency audits, or customer support services. Inquire about any such offerings and assess their relevance to your business. Value-added benefits can help optimize energy consumption, reduce costs, and provide peace of mind knowing that reliable support is available when needed.

What is the company’s track record for reliability and customer service?

Reliability and customer service are critical factors to consider when assessing a company’s power prices. Inquire about the provider’s history of power outages and how they handle service interruptions. Additionally, ask about their customer service hours, channels of communication, and responsiveness to inquiries or complaints. Researching online reviews and seeking recommendations from other businesses can provide insights into the company’s reputation. Choosing a provider with a reliable track record and excellent customer service can ensure that your business receives uninterrupted power supply and prompt support when needed.


In the competitive electricity market of Texas, businesses should approach the selection of an electricity supplier with diligence and ask the right questions about power prices. By understanding the current rates, contract terms, demand charges, renewable energy options, and additional services offered, companies can make informed decisions that align with their operational and sustainability goals. Careful consideration of these factors can result in optimized energy costs, reduced environmental impact, and enhanced operational efficiency. Businesses should seek transparency from potential suppliers and compare multiple offers before choosing the best option that suits their unique needs. By doing so, they can navigate the electricity market in Texas successfully and secure a power supply that meets their requirements while minimizing costs and maximizing benefits.

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