Everybody needs electricity. This is especially true in Texas, where a power outage can lead to sweltering heat in summer and brutal cold in winter. But if you’re not paying attention, your electricity provider could be taking advantage of you and your family with gimmicky plans and hidden fees.
Since no two families use power in the same way, it’s hard for any electricity provider to perfectly estimate your needs when you start working with it. Unfortunately, many providers take advantage of this fact by starting you off with a sweet deal that spikes your costs after signing up.
Here at Power Wizard, we’re determined to save you from unnecessarily high electricity costs. Learn how to evaluate Texas electricity providers and switch electric providers if necessary.
Top Reasons People Switch Electric Providers
There are two main reasons to switch electricity providers: when your contract expires or when your current electricity prices are too high.
Anytime your current contract is set to expire, it’s a good idea to evaluate different electric providers in Texas to determine whether it makes sense to stick with your current provider or whether it would be better to switch electric providers.
Many providers will give benefits to new customers, which can make this the perfect time to switch electric providers for a lower rate. However, it’s still important to shop around. Providers can be sneaky, reeling families in with the appearance of low rates. If you don’t do your research, these providers that look like a bargain can actually cost you money in the long run.
Using a tool like Power Wizard can help you evaluate not only the short-term costs of electric providers but also the long-term ramifications of different providers so you can make an informed decision for your home.
The other major reason to switch electric providers is if you notice that your electricity prices are too high. Maybe your current electric provider has recently increased your rates, or maybe you’re just trying to get a handle on your budget and are looking for ways to cut costs.
Changing providers doesn’t guarantee reduced rates. Some providers may charge you a fee to terminate your contract, and other times, electricity prices may have risen due to increased supply chain costs that have impacted all providers in the area.
Power Wizard can help you evaluate whether switching electricity providers can reduce your utility bills.
How to Determine If Your Electricity Rates Are Too High
Your first step is to look into your current electric plan. Certain plans, like time-of-use plans, charge more money for using electricity during “peak-use hours” and less money for using electricity during less popular energy-use times. Depending on your unique schedule, being on a time-of use plan may help, or hurt, your overall electric bill.
Finally, comparing your rates with other electricity rates in your area can help you decide if you’re paying the right amount for electricity. Unfortunately, it’s not as easy as asking your friends what they pay for electricity. There are numerous factors that go into your electric bill, including:
- The size of your home
- The age of your home
- The age of your appliances
- The number of people living in your home
- The number of hours you use electricity each day
This is where a tool like Power Wizard comes into play. We can compare what you’re paying to other households that are similar to yours to help you decide if your electricity rate is reasonable.
When to Make a Switch to a Different Electric Company
The easiest time to switch electric providers is when your contract comes to an end. However, you should consider making the switch early if:
- You’re paying significantly more for electricity than you should be
- Your electric provider recently raised your rates
- Your electric company switched you to a different plan
Trustworthiness is as important as cost when it comes to your electric company. If you’ve lost faith in your current provider or believe it’s using unfair business practices, it may be time to make a change.
Power Wizard finds you the best electricity plan and ensures you won’t overpay for electricity again.Learn More in Under 2 Mins
How to Switch Your Electricity Providers
There’s a lot that goes into switching your electricity providers in Texas. You need to evaluate your current electricity usage, find out what goes into canceling your current plan, compare local energy providers, and choose the right providers for your family.
Evaluate Your Current Electricity Usage
The first step is to understand how your household currently uses electricity. You want to examine not only how much electricity you’re using each month, but also your peak-use hours.
With smart meters to measure electricity use, you can look up a report of your household’s energy use.
If not, you may need to use a home monitoring system to determine your current electricity use. This can have a bit of an up-front cost, but the benefit is not only that you can evaluate your current energy use, but also that you can make smart decisions going forward about how you use your energy. This can help you avoid overpaying for electricity in the future.
Find Out If There Will Be a Termination Fee
The next step is to determine if there will be a fee for terminating your current electric plan. If your contract is coming to an end, the likely answer is no. But if you’re planning to switch electric providers mid-contract, you’ll want to call and see if — and what — your current company will charge you for making that switch.
Compare Electricity Providers Across Your State
Once you’ve compiled all the necessary information, you can begin comparing Texas electricity providers. There are two different factors to look at: the actual prices and the available plans.
Electricity is generally charged per kilowatt-hour (kWh). So when comparing electricity prices, you’ll want to look at what a company charges per kWh. However, you’ll also want to ask about things like delivery fees and transition fees, which can add up quickly.
Electricity Plans: Fixed or Variable Rates
Fixed electricity plans charge you the same amount per kilowatt-hour throughout the term of your contract, regardless of changes to the supply chain. This can make it easier for you to set a monthly budget. Variable rates, on the other hand, will fluctuate based on what your providers is paying for the power. These plans can be harder to budget around. Power Wizard always recommends fixed electricity rates when you switch electric companies.
Choose a Competitive Energy Providers
Once you’ve done some comparison shopping, you’re ready to choose your new energy providers. You’ll want to make a phone call, confirm the plan that you’re looking for, and set up a time to terminate your old services and begin the new services.
Find the Best Texas Electricity Company With Power Wizard
Power Wizard makes it easy for you to evaluate all the power providers in your area and make a good decision about the right providers for your home. We take the guesswork out of the process, helping you evaluate the right type of plan for your family and the most budget-friendly provider, not only today but in the long term as well. Contact us today to learn more about working with Power Wizard.