There are things you can live without. Electricity? Certainly not.
Unfortunately, while electricity is a vital ingredient for daily living and business, many people don’t have a say in their electricity pricing and planning.
Texas, however, is different – stark different.
Following the deregulation of the state’s energy sector in 2001, consumers have the chance to decide who their electricity provider will be and on what terms. While this is great for consumer choice and business competition, it can be a recipe for disaster if customers are not up to speed on their electricity options.
Maybe you are on a contract with an electricity provider that you are considering changing or you are new to Texas and looking for a newly-minted contract. Whatever be the case, these five tips will help you understand the electricity market in Texas and make a sound choice.
Texas Has a Deregulated Electric Sector
Texas is the second largest state in the United States with a population of 28 million. However, when it comes to electricity utilization, Texas tops the list. About 2 decades ago, the Texas legislature approved a bill that allows for users to cherry-pick their electric company.
This means that you can shop for your own electricity provider as well as the terms and durations. Such companies are termed Retail Electricity Providers (REP).
There Are over Hundred 100 REPs Offering 400 Electricity Plans
If you are considering electricity plans, you are sure to be spoilt for choice. According to the Public Utilities Commission of Texas (PUCT), there are over hundred electricity providers who have over 400 electricity plans on the table. Some of these plans include providers who can help you go green by providing 100% renewable energy.
Many Electricity Consumers Have Changed Plans
If you are thinking of changing your electricity provider, you are not alone. You will not be the first nor will you be the last. According to the PUCT, over 90% of electricity consumers have already changed their providers at least once.
So, don’t be afraid to change your electricity plan if you are not receiving value for money or you think you can get a better deal somewhere.
Understand Fixed and Variable Rates
There are a lot of options regarding organizing your contract with an electricity provider. Fundamentally, there are two types of electricity plans: fixed-rate and variable-rate plan.
With the fixed-rate plan, a consumer is given a stable electricity price for a specified period. Usually, these contracts range from six to 24 months.
Such price stability is often beneficial to the consumer because the consumer pays the same amount even if prices increase. On the other hand, the consumer does not enjoy when there is a downturn in electricity price rates.
A variable-rate plan, on the other hand, is fluid pricing, and it changes as a result of the market prices of energy. Such plans are usually good for consumers who want to flow with the tide and not be stuck to one option.
Good Reviews Are Very Helpful
Because there are over a hundred electricity providers, choosing one out of the lot can be an exacting task. If you are looking for good Texas electricity plans, you can read trusted sites where thorough reviews have been done. Asking your colleagues and neighbors about their experience can also be a helpful means.
Whether you live in Texas or you are considering moving to Texas, you need electricity. With Texas’ deregulated market, there are many options available. But to make the right decision, you will have to understand the market, know what the data is, and read reviews and comparisons on various electricity providers.