Whether you’re a newcomer to shopping for electricity providers in Texas or are looking to make a switch, the task can be daunting. After all, to get the best deal for your household, you’ll need to compare electricity providers. This process involves comparing price, contract terms, and energy options.
Feeling nervous? Don’t!
Many online tools, including Power Wizard, take the headache out of choosing an electricity provider. Power Wizard lays out 100s of energy comparisons for you to review with a few simple clicks. Even better, the suggested electric supplier options you see are 100% tailored to meet your unique energy needs.
To find your perfect electric service in Texas, check out the top factors to consider when comparing electricity providers.
What factors matter when you compare electricity providers?
To ensure you’re getting the best electric supply, you should start with some research.
Electricity in Texas is about more than cost. There are also many factors to consider that are found deep in the fine print. So let’s break it all down.
Renewable energy options
Looking to be as energy-efficient as possible? You’ll want to compare your renewable energy options. Renewable energy, like solar or wind, is naturally replenished and, unlike coal or oil, does not diminish over time. Plus, renewable energy produces little to none of those greenhouse gases that cause air pollution. By choosing 100% renewable energy plans, you’re also supporting economic development in the industry.
Some electricity providers only offer renewable plans, while others offer it as one choice among many. Worried that a renewable energy plan will come with a hefty energy price? You’ll be happy to know renewable technologies decrease price year after year. Compared to more traditional energy options, you could be getting a more affordable deal — and doing your part for the planet.
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Cost of electricity
Energy costs are a big consideration when comparing electricity plans. But what exactly goes into your electric price? There’s a lot that Texas electric companies aren’t telling you about their rates. These details include customer service, minimum usage, and utility company fees. Texas electricity providers must have an Electricity Facts Label (EFL) that explains their fees, although they’re often buried in the fine print.
You want to master the kilowatt-hour (kWh) concept to best understand how your electricity bill is calculated. A kWh is the amount of energy a machine needs to run for an hour. You determine the amount you pay for your electricity by multiplying your kWh per month usage and an electricity provider’s kWh rate. You can see all of this information directly on that pesky EFL.
If you’re not into dissecting EFLs and are worried about hidden fees, you can use Power Wizard. Power Wizard is not affiliated with any retail electricity providers (REPs). That means there’s no bias towards any REPs, allowing you to compare plans’ rates and fees with 100% transparency.
Contract terms and contract period
Another factor to consider when comparing electricity providers is their contracts. You’ve got two primary types of plans to choose from.
The first plan type is a variable-rate plan. These plans cover shorter contract periods, and are a month-to-month. The variable rates are determined both by the current market price of electricity and how much profit an electricity provider needs to make. The cost you pay each month can vary wildly based on current market circumstances, making it harder to plan your budget.
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The second plan type is a fixed-rate contract. These long-term plans can last anywhere from three months to five years and offer you the same rates throughout your contract period. These plans provide a stable budget to work with and can save big in the long term if the market goes up. For Texans, fixed-rate contracts remain the top choice. Still, the key to figuring out which contract to choose depends on your budget and energy usage expectations.
Electricity deals
One thing many customers look for when choosing an electric supplier is incentives. Some providers offer many deals — from prepaid gift cards to a “free weekend” of electricity. While these deals are tempting, there’s often a catch. Many of these same companies charge higher electricity rates to make up for the freebies or deals they are offering. Be sure to always check the fine print for the actual terms.
Then there are electricity companies who offer bill credit plans. These plans have an amazing-looking low rate per kWh. On paper, it looks good — you get a usage credit if you stay in the same amount of kWh usage per month. However, you only get this credit if you stay exactly in the range required. If you use less electricity in one month, you get no credit and pay a higher rate. You have to do a lot of math and surveying to make sure you stay in range.
Tips to consider before you make the switch
Now that you know what things to consider when you want to compare electricity providers, here are a few tips to consider before making the switch.
Understand your electricity usage and expected price
To better understand your average monthly spending, take a moment to check out your current electricity usage. Your electricity bill shows you your monthly kWh usage. You can then multiply this number by different companies’ kWh rates to see what you can expect to pay with them. This gives you a more accurate idea of what choosing a particular provider will really cost you.
Let us find you the best electricity plan in seconds and start saving.
Consider reputation
Reputation is highly important for Texas electricity providers. Any company can market itself as the best deal. But what are their customers actually saying about them? Scope out some electricity provider review sites to learn more about providers’ reputations. Take this with a grain of salt, though — some companies play games with review sites to gain favorable reviews.
Keep early termination fees in mind
Another type of fee to look out for is early termination fees, which are common with fixed-term plans. If you want to back out of a long-term contract, you’ll usually have to pay the price. Some companies offer lower fees than others, which can help reassure you.
Not happy with your electricity rates? Change it today!
Power Wizard’s comparison tool gives users the ability to view current rates that may just save shoppers hundreds of dollars! Enter your zip code to discover the best electricity rates and find the plan that ensures you won’t overpay for electricity again.
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