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855-475-8315In Texas, many of us can choose our electricity provider. But the danger comes when we let our electricity plan expire. We’ve all been there when we get that shocking bill.
The most common plans we can sign up for are contracts that last 3, 6, 12, 24, or 36 months. But did you know that once these contracts are up, the electricity provider is required to place you on a variable rate? The provider will try to renew you a new plan while they are placing you on a variable plan. The provider can change the rate at their discretion in a variable plan. This is why many Texans have crazy electricity bills and don’t know why.
It’s important to note your contract end date so you can choose a new plan or a new provider. Otherwise, you might pay the price.
Let us find you the best plan in seconds and start saving.
How do electricity contracts work in Texas?
In the deregulated parts of Texas, we can choose any electricity plan. Each plan has a contract designating the rate for electricity and how long the contract is valid, the term. The rate of electricity varies based on the term length. An electricity plan term that includes two summers and one winter will most likely be more expensive than a term with two winters and one summer. Sometimes plans are only valid for 3 months, other times, 36 months. You can see the plan length upfront when making a choice. Most electricity plans with a term length will include an Early Termination Fee to get out of that contract.
When the electricity plan expires, it’s important to choose a new plan or a new provider before the electricity provider moves you to a “variable rate.” A variable rate is a price that changes month to month based on the provider’s decision. A variable-rate plan does not have limits on how much a provider can charge you. Also, variable plans do not require the provider to proactively tell you how much they are going to charge you. You only find out after you have received your invoice.
Electricity providers hope that you never notice when your contract ends, and they can slowly increase the price on you, one bill at a time. Most of an electricity provider’s profits come from customers on variable rates.
How does a plan expire?
Every electricity plan contract expires. Your electricity provider is required to notify you of your expiration date. In addition, the expiration date is always located on your monthly bill. Understanding when your plan is expiring is important. This is your notification to start shopping for your next electricity plan. You have to ensure you are aware of the date that you electricity plan expires and move to a new plan before it expires.
How do I stop a plan from expiring?
You can’t. Your current electricity provider will try to renew your current electricity plan. We recommend always shopping the renewal offer before accepting it. You can always use Power Wizard’s rate monitor to see if the renewal offer is competitive within the Texas electricity market.
Switch to a new provider rather than renewing
Power Wizard has found that switching to a new provider will usually give you a better rate than staying with your current provider. Electricity providers are always competing for more customers, so you’re more likely to find a special price or deal with a new provider. Most electricity providers have special offers for new customers compared to the plans offered to current customers.
How to switch without an Early Termination Fee (ETF)
You are legally allowed to cancel your electricity plan without an ETF in two situations:
- You are moving – just provide your lease or new home contract with your move out date
- You switch providers within the last 14 days of your current contract.
How to choose a new plan
The electricity market is flooded with plans and providers (hundreds!) and it can be overwhelming trying to pick one that’s best for you. When your electricity plan expires, make sure you find the right one for you.
Everyone uses electricity differently. The best electricity plan for you is going to be a different plan than your neighbor’s. It all comes down to your home and how much electricity you use per month.
Providers offer different prices depending on how much energy you use. (We know, it’s complicated). To put it simply, each plan has a different price listed based on an average of 500, 1000, or 2000 kilowatts. If you typically use 1500 kWh in your home, you’ll need a plan with the best price of that usage. That’s where Power Wizard can help.
Our TruPrice tool takes your home’s actual electricity usage (we look at the historical energy usage too) and compares it to the electricity plans available on the market. This is what makes us different from every other tool that compares electricity plans. We find the best plan with the best prices for YOUR home. Ready to find the best plan available right now? Use TruPrice.
Let us find you the best plan in seconds and start saving.
What about Power to Choose?
Power to Choose is free, but there’s a hidden cost to you. Power to Choose does not use your real electricity usage like PowerWizard’s TruPrice does to determine the best electricity plan for you. Everyone uses electricity differently. Power to Choose will show you the prices of an electricity plan, but they don’t tell you if it is the right plan for you. You may end up paying more if you pick the wrong plan. When your electricity plan expires, use Power Wizard’s TruPrice tool to find the right plan for you.
Power Wizard’s TruPrice finds the best electricity rate for you
Are you ready to truly find the best plan on the market for you? Our TruPrice tool does all the work in just seconds so you don’t have to guess anymore. No more overpaying for electricity. No more surprising, shocking bills. Get started today! It’s time to stop overpaying.
Let us find you the best plan in seconds and start saving.
