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Deregulation means Cheap Electricity in Texas

July 13, 2016

Are you ready to save on electricity this summer? The temperatures are heating up and that means rising energy costs, but with a new provider and cheap Texas electricity, you can keep cool and save money. Thanks to deregulation, you’re not forced to stick to one plan; instead there are a multitude of providers and plans out there that can save you money.

Energy Deregulation

There are lots of options for saving money on electricity in Texas, but knowing where or how to start can seem like a daunting task. Fortunately, it’s a lot easier than you might think! To get started looking for a new energy plan, all you need is a zip code and in some cases, the type of location, whether it’s residential or commercial.

The term “deregulated energy” makes it sound like the market is a free for all. In reality, the market is well regulated by the Public Utility Commission of Texas (PUCT), but the deregulation means that private sellers of electricity, known as retail energy providers or REPs, can compete to off low rates.Deregulation means Cheap Electricity in Texas

The regulation from PUCT ensures that customers are protected from fraudulent practices and are able to get the same reliable electricity, regardless of who they buy it from. So whether you want to go with a big name company or an independent startup, your electricity will work just as well.

Shopping for Cheap Electricity in Texas

Now, let’s get down the real business: finding cheap electricity. Like we said, all you need to get started is a zip code. That is a mandate from PUCT to prevent companies from demanding anything more than the zip code to provide rates. Doesn’t matter your income, credit, or energy history, all you need to shop for a new plan is your zip code.

After you enter the zip code, you’ll be presented with several, probably half a dozen, plans per provider. You can search for these plans through REP’s websites or you can go to a broker or aggregate site to get a whole bunch of plans from different sites all at once.

Since companies compete to offer the best prices, there could very well be a difference in what is offered for a particular plan from one that is similarly priced. Plans may include renewable energy, long contracts, no contract, or incentives like bill credits. All of these can affect the rate of a plan, and finding the cheapest electricity in Texas is all about the fine print, also known as the EFL. Compare the EFLs of plans you like to find the best deals.

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