Cheap Electricity Company

You want the best for your money and you want it now! That’s why you’ve been searching for a cheap electricity company.

Power Wizard’s Shopping Tool can calculate your electricity savings in seconds!

You’ll be empowered to choose the best and most affordable electric plan.

Before you sign up with the first cheap electric company you stumble across, use Power Wizard now!

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“Cheap Electric Companies Near Me” – How Can You Find What You’re Looking For?

If you’re like most people, here’s how you shop for a cheap electricity company, also known as a Retail Electric Provider (REP).

1. Go to your favorite search engine.
2. Type in something like “cheap electricity company in Texas.”
3. Read through a couple of different websites.
4. Become confused trying to understand the different plans – Gold Plans, Flex Rewards Plans, Season Pass Plans, and more.
5. Read through different contracts and get lost in all the technical jargon.
6. After hours (or even days) of researching, you finally give up and choose the plan you think is best. You’re not sure if it’s the best plan for you.

With all the confusion, how can you find what you’re looking for?

Keep scrolling to find a step-by-step, simple process to choose the best electricity plan for you.

What Do You Really Want When Choosing A Cheap Electricity Company?

Are you looking for a cheap electricity company? What does that even mean?

Most likely, you aren’t looking for a cheap electricity company.

Instead, here’s what you actually want:

You want to find an electricity plan in Texas that will save you the most money for your specific energy needs.

What Does Cheap Mean?

Here’s the bad news:

There’s no such thing as a “cheap electricity company.”

Let’s say that there’s a man in Fort Worth named Riley. He lives in a cute, 800 square foot apartment. Like most people in Fort Worth, he wants to find the cheapest electricity company. He goes online and starts doing some research.

Riley is a smart, inquisitive person. As he starts to research, he starts thinking about this process as a game. He wants to find the cheapest company for his needs.

So he creates some fancy spreadsheets and goes to online forums and starts asking around. Maybe he even reads some legal articles about how to understand contracts so he can navigate the terms of service better.

After multiple days of researching, Riley thinks he’s found the cheapest company. He buys the cheapest plan on the market (in terms of price per kWh) from them for 8.9¢ per kWh. Riley immediately forgets about electricity after buying from them, especially since he set up his credit card for automatic payments.

Four months later, Riley gets a very unpleasant surprise on his electricity bill.

He looks at the bill, which shows he paid 10.7¢ per kWh.

Riley gets confused. His face gets warm and he starts to sweat.

When he reads the fine print, it states that his rate increased from 8.9¢ per kWh to 10.7¢ per kWh because he didn’t use the minimum amount required.

Riley, based on the contract with his “cheap” electricity company, is required to use at least 1,000 kWh per month. Riley, last month, only used 917 kWh.

His so-called “cheap” electricity company suddenly isn’t so cheap anymore.

Why did we tell you this story?

Riley’s story clearly shows that:

• The “cheapest” electricity company doesn’t exist. Each person’s electricity usage is different. The best company and plan for you is likely not the best company and plan for your neighbor.
• The electricity market in Texas is complicated. No matter how much research you do, there’s still a chance that you won’t buy the best plan. As a result, you risk overspending.

Why “Cheap Electric Companies” Might Not Be As Cheap as You Think

Many electricity plans include stipulations in the fine print of their contracts.

You think you’re only paying the price per kilowatt-hour. However, you’re likely to pay much more than that.

Reason #1: Minimum Usage Requirements:

One electricity company might have a plan for 8.8¢ per kWh and another plan for 10.7¢ per kWh.

How is this possible?

Electricity companies charge you based on the number of kWh you use each month.

If you commit to using at least 2,500 kWh each month, then they’ll be willing to charge you a cheaper rate per kilowatt-hour since they know you’ll use more energy.

If you only commit to using at least 1,000 kWh each month, then they’ll charge you more per kWh because they know that you’re not as likely to use as much.

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Electricity companies really want you to use energy. If you don’t use electricity, they don’t get paid.

Because of this, many REPs have minimum usage fees.

If you commit to a plan for 2,000 kWh per month and you only use 1,529 kWh during the month, then the electricity company will charge you a fee.

What do these minimum usage fees look like?

There are two ways that electricity companies will structure these fees:

• Flat Fee: If you don’t meet the minimum requirement, then the electricity company will charge you a flat fee. It might be $25 or it might be $50. This is not as common as an increased rate per kWh.
• Increased Rate Per kWh: This is the most common fee structure. If you don’t meet the minimum usage, then the REP will increase your rate. They may just increase it for the current month, or they may increase it for the rest of your contract. For example, if you original rate was 9.9¢ per kWh for 1,000 kWh per month and you fail to use 1,000 kWh, then they might increase your rate to 11.5¢ per kWh.

Reason #2: Hidden Fees

Hidden Fee #1: Cancellation Fees

Many electricity companies charge you a cancellation fee if you cancel before the termination of your contract.

How do cancellation fees work?

Your “cheap” electricity company that charges a hefty cancellation fee will likely charge you a flat fee.

Some plans might have a fee of $20. Other plans might have a fee of $100 or more.

Two things that you should think about when it comes to cancellation fees:

1. If you’ve been charged a cancellation fee, there’s a chance that you can get it reimbursed. This is unlikely, but it’s worth reaching out to your REP’s customer service team to enquire.
2. If your contract is renewed, then your cancellation fee might still be in place. Even if you’ve made it through your entire contract (whether it was 6 months, 12 months, or 18 months), once it’s renewed for another period, the cancellation fee might still be effective.

Hidden Fee #2: TDU Delivery Fee

Electricity companies usually don’t operate the power lines. They simply buy the electricity at a wholesale price and resell it to you.

TDU stands for Transmission and Distribution Utility. These are the utility companies that actually manage, own, and operate the power plants, power lines, electricity distribution systems, and more.

Those utility companies, the ones that, for example, will restore power lines after a storm, need to have a form of income as well.

Because of this, there’s often a charge on your electricity bill called the “TDU charge,” “energy 

charge,” or other similar names.

Hidden Fee #3: Customer Service Fee For Phone Calls

Some electricity companies will charge you for customer service phone calls.

Most electricity companies will not have a fee for this. However, it’s something that you should confirm when you are looking to buy an electricity plan.

Reason #3: Contract Renewal Upcharge

Many electricity companies use borderline-ethical strategies to get you to pay more money.

One of those strategies “cheap” electricity companies use is to automatically charge you a higher rate after your initial contract expires.

You might be thinking, “But how can they do this? Don’t they have to tell me?”

Well, they technically did tell you in the fine print of the contract. Companies that do this explicitly state in their contracts that they’ll increase your rate after your contract is renewed.

Reason #4: Market Price Fluctuations

Often, people assume that pay-as-you-go plans, also known as prepaid electricity plans, are cheap.

Sometimes this is true.

Other times, prepaid plans are way more expensive:

Often, people assume that pay-as-you-go plans, also known as prepaid electricity plans, are cheap. Sometimes this is true. Other times, prepaid plans are way more expensive.

Prepaid plans may be subject to the market price of electricity. If the market price of electricity skyrockets (due to a heatwave, oil crisis, etc), then your rate might double or even triple.

Things To Be Cautious Of When Searching For The Cheapest Electricity Provider

Think about low-fare airlines for a second:

• If you forget to print your boarding pass, you get charged.
• Want to pick your seat? That’s another charg.
• If you want to water on the flight, you get charged.

Yet, people still fly these airlines and get stuck paying these ridiculous fees. The same thing happens with “cheap” energy companies, specifically for electricity.

Marketing Strategies

“Free Nights and Weekends!” Yet, they charge you double the rate during the day and the week.

These are the types of marketing strategies you have to watch out for.

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Free Gifts

“Sign up for our Gold Plan today and we’ll give you a free Google Home Mini!”

You get a “free” Google Home Mini but you pay an extra $30 per month (compared to the best plan for your energy usage) in your electricity bill. In a sense, that “free” gift just cost you $360.

No Deposit Doesn’t Automatically Mean Cheap

You see that an electricity company offers a plan that doesn’t require a deposit. It also doesn’t require a credit check.

You’re short on cash and your credit isn’t great. This sounds like a perfect “cheap” plan for you.

Yet this electricity plan without a deposit will end up costing you an additional $21 per month since it’s not the best plan for your specific needs.

Prepaid Plans Might Not Be So Cheap

You’re thinking, “Wow, with a prepaid plan I only have to pay for the electricity I use? That sounds great.”

Prepaid plans might be subject to the market price of electricity. Sure, you might only pay for the electricity that you use, but the electricity that you use might be two or three times as expensive.

The “Cheapest” Plan Now Doesn’t Mean The Cheapest Plan 6 Months From Now

We would argue that 98% of electricity consumers in Texas navigate electricity incorrectly.

Once they buy an electricity plan, they assume that the process is over. They set up their credit card to pay automatically. They rarely check their electricity bills. And they definitely don’t continue shopping around for electricity just in case a better plan comes on the market.

This last part – the part about continuing the shop for a better plan – might cost you hundreds of dollars.

How can you be confident that the best electricity plan for you and your family today is the best plan for you and your family in a year from now?

We have a solution. Power Wizard’s unbiased algorithm continually monitors your electricity plan and usage. If a better plan comes on the market, Power Wizard will make switching easy. We even consider cancellation fees.

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New Plans On The Market

There are over 100 REPs in Texas.

Some of those REPs might have dozens of plans.

With so many REPs and so many plans, new plans will likely enter the Texas market by the time your contract is up. There’s a chance that one of those plans will be better than your current plan.

How can you keep your eye on the newest plans in the market?

You have 2 options:

• You can constantly keep your eyes on all the plans in the market. This means manually searching through dozens of cheap electricity company’s websites every week. This is a part-time job.
• You can become a member of Power Wizard and have our unbiased algorithm look for a new plan for you 24/7. Our platform monitors your electricity usage and plan. We scan through potentially thousands of plans each day, including all new plans, to see if another one is better for you.

Your Energy Needs Might Change

Consider this:

You’re running a new business and need to supply electricity to your business. Right now there are 3 employees, including yourself.

Right now, the best plan for your business is a relatively low kilowatt-hour plan. You use about 2,000 kWh per month.

Then something amazing happens:

Your business starts taking off. Over the next six months, you hire 11 employees. All these new employees, with additional technology requiring a lot of energy, massively increase your usage.

You go from using 2,000 kWh per month to over 11,000 kWh per month.

It’s a possibility that the plan from the “cheap” electricity company that you chose six months ago isn’t the best plan for you.

What Are Your Energy Needs?

Your energy needs are going to determine the cheapest electricity company for your needs.

Here are some factors that will influence which plan is best for you:

• The size of your home’s
• Your home’s age (which will impact energy efficiency)
• What appliances are in your home?
• Your historical electricity usage

Do You Need a Cheap Gas And Electric Company?

Are you looking for an electricity company and a gas company?

Many Retail Electric Providers, REPs, only supply electricity. They don’t offer natural gas as a service.

While some companies may offer both gas and electricity, be wary. Just because they offer both doesn’t mean you’re getting the best deal.

Cheap Electricity No Deposit

Are you looking for an electricity company that doesn’t require a deposit?

If this is a must-have for you, since you’re short on cash, then this will limit which electricity companies you can choose from.

Cheap Prepaid Electric Companies

Are you specifically looking for an electricity company that offers prepaid plans?

If you need this, then this will limit which electricity companies you can choose from.

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How To Find A Cheap Electricity Company

You don’t want a cheap electricity company. You want the best electricity plan that’s going to save you the most money. There are two ways to find a great electricity plan.

Option 1: Spend Frustrating, Migraine-Inducing Hours Manually Searching For Cheap Electricity Companies

As we’ve already stated, there are more than 100 electricity companies. And there are thousands of electricity plans.

You can go to each electricity company’s website and analyze each of their plans. 

Then, you can cross-reference that data against your own electricity needs. This will take hours, if not days or weeks, and is likely to cause frustration and confusion.

There still isn’t a guarantee that you will choose the best plan for your specific energy needs.

Option 2: Spend 5 Painless, Easy Minutes Using Power Wizard’s Free Savings Estimate

Power Wizard doesn’t pigeonhole you into one “cheap” electricity company.

We help you find the best plan for your specific and unique electricity needs.

You give us relevant data, such as your home’s size and electricity usage, and we run your data against every available plan in your zip code. Our unbiased algorithm then matches you with the best plan for your specific needs.