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Mistakes to Avoid While Shopping for Electricity Rates in Texas

January 11, 2021
by dmirza
image with text electricity rates in texas

As such, navigating through the electricity rates in Texas can be confusing for a layperson. On top of that, there are regulations changes, rulings that differ from one place to another, and scores of providers which makes the selection trickier.

So, if you make a mistake when looking for the best electricity rates in Texas, you aren’t alone.

Since Texas electricity markets opened in 2002, many providers have entered the arena. Each offers a multitude of plans and benefits. While it may be overwhelming to choose the best one, you can still make the most of your purchase. Just avoid the mistakes mentioned below.

Not Comparing Variable and Fixed Electricity Rates in Texas

Fixed and variable plans are two options when looking for the best electricity rates in Texas. Choose the right one as per your monthly usage and needs. But, understand them first.

Fixed Plans: With a fixed-rate plan, your energy bills will remain locked in for the entire term of your contract, even if the market prices drop. Texas electricity companies offer fixed plans for 6, 12, or 24 months. But, they may charge an early termination fee if you switch your provider before the contract expires.

Variable Rates: As the name suggests, variable-rate plans fluctuate according to the overall market prices. The providers determine these prices based on demands, weather, distribution system, fuel prices, etc. The plans offer flexibility, as you are not locked into an agreement. But, you may have to bear the grunt of high-demand seasons when prices shoot up.

Not Knowing Your Monthly Usage

Though you have two options to get affordable electricity rates in Texas, estimating your monthly usage is essential. The energy retailers list their prices for 2000 kWh per month, but per kWh rates may differ if your usage is 500 or 1000 kWh every month.

You may even have to pay a minimum usage charge if your consumption is below the specified monthly threshold. So, understand and assess your consumption before shopping around for the best rates.

Not Comparing Several Electricity Providers

With deregulation, Texans have many choices to pick the most affordable electricity plans. But, making a hasty decision may cost you hundreds of dollars extra per month.

Take proper time to study and compare electricity rates available in your area on a platform like Shop Texas Electricity. It offers price comparisons for all the providers in a specific geography. Then, obtain bids from at least three retail energy providers to pick the right one.

Not Reading the EFL Carefully

Sometimes, consumers choose a variable plan but fail to read the EFL carefully. The plan’s electricity facts label (EFL) offers details like the plan’s name, type (fixed or variable), duration or term, price per kWh, delivery charges, and introductory rate if any. It can help you understand electricity rates in Texas.

You must read between EFL’s fine print because it defines the terms of your contract with the electricity company. The Texas Right of Recession gives you three business days from its receipt in your mail. Hence, you can reconsider your electricity contract with any retail energy provider in the state.

If you are in a dilemma, check out various energy rates and plans on Shop Texas Electricity and find the best one for your needs.

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