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Cheap Electricity – The 411 on Electricity Plans

June 12, 2014

Texas has had a dereSTE - Save Energygulated energy market since 2002. This means that the people have the power to choose their own energy plan. No longer can utilities fully dictate what energy prices will be. Instead, retail energy providers (REPs) compete against each other, offering comparative plans at competitive prices. This allows people to choose plans that suit their needs, whether it’s just cheap electricity, plans with reward programs, or renewable energy plans. These plans vary in a number of ways, but we’ll break down how they differ.

There are two common types of plans: Variable and Fixed. Variable rate plans change month-to-month based on market conditions. You may get a rate that’s lower than a fixed plan, but you could also end up with a rate that’s higher. A benefit of variable plans is that there is no cancellation fee if you decide to switch to another plan or provider. The downside is that during months of high energy usage, the rates tend to climb.

Fixed rate plans lock in your rate for a period of time defined by your plan’s contract. These plans typically run between 3 and 36 months, and there are cancellation fees if you break the contract early. However, when you lock in your rate, it won’t change if energy demands drive prices up, like during the summer months. Likewise, if the market conditions cause the rates to drop, you may be paying a higher rate than those with a variable rate plan.

Most REPs offer renewable or green energy plans as well. The Electricity Facts Label (EFL) required for each plan tells you exactly how much of the electricity you are purchasing comes from renewable sources like solar and wind. These plans are often available as either fixed or variable plans, so you have the power to choose one that works better for you. Renewable plans give the benefit of using energy sources that have a minimal negative impact on the environment, but they do tend to be a higher price than other plans.

When picking or building a plan for your home, you’ll have the ability to choose a fixed or variable plan, pick a contract length between 3 and 36 months, choose an auto pay or manual payment method, the use of green energy, and any qualifying rewards like paperless billing. Your contract and EFL will detail all associated fees like service charges and late fees associated with the plan. They will also provide contact information for your REP and Utility. The Utility maintains the power lines and is responsible for getting your electricity to you, so you should contact them if you are having trouble with your service. Searching for the cheapest electricity rates may seem overwhelming, but Shop Texas Electricity can sort through all the plans and find the ones that best suit your needs. You can search by plan type, rate, and even green plans. Cheap electricity is just a few mouse clicks away.

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