Numerous variables affect Texas electricity rates. There are just as many electrical suppliers in Texas as electricity plans and rates—if not more.
- The plan you choose,
- The length of the contract,
- The cost per kilowatt-hour,
- Your service region,
- Your usage patterns, and
- The amount of renewable energy used to power your electricity (if any) are just a few factors that affect the Texas electricity rate you pay. You need to do a lot of homework to get the lowest electricity rates in Texas.
Why Are Energy Plans and Electricity Rates in Texas So Disparate?
When deregulation was implemented in Texas in 2002, most Texans could shop in a competitive market and select the best power supplier, electric prices, and energy plan for their need.
Why are some Texans allowed to choose but not all? Because some locally owned utility companies and privately held cooperatives were exempt and had the option to participate when the agreement for deregulation in Texas was reached.
The competitive energy market in the state includes numerous large cities and significant metropolitan areas, including Dallas, Houston, Fort Worth, and many others. Their occupants can choose from a wide variety of REPs as a result. Austin and San Antonio are two notable exceptions.
Visit the Power to Choose tool offered by PUCT and enter your ZIP code to find out if you live in a service region where you can choose your power provider. A pop-up notice stating “No plans detected” will appear if your market is not deregulated. Your ZIP code might be outside a service area where businesses can compete.
Reasons To Bother About Choosing a Texas Electricity Provider
Most of us have a lot going on, so choosing an energy provider is usually the last thing on our minds. This might be a costly error in a mostly unregulated market like Texas even if they promise to offer lowest electricity rates in Texas.
It might not be in your best interest if you are allocated an energy supplier if you don’t choose one yourself.
Texas often experiences mild weather all year round. However, as observed in February 2021, winters can get extremely cold, raising energy costs and, consequently, electric rates. Similarly, Texas summers are brutally hot; at this time, most of us must turn on the air conditioning to keep both comfortable and safe.
Extreme weather might cause pricing to change drastically, which can be expensive for you. This is because extreme weather conditions can strain the grid and drive up the cost per kilowatt-hour.
Did you realize it? You can automatically switch to a variable-rate plan when the term of your fixed-rate plan expires without even being aware that the fixed rate no longer covers you.
When you seek the services of affordable electric companies and sign up for a new energy plan, note the date on your calendar so you’ll be reminded to check in with your current utility company and switch providers if required when your contract expires. Connect with Ambit Energy now!