Shopping around for power suppliers is a great way to get the best price and value. This freedom is not available to everyone, however, because deregulation is not applicable in all 50 states. Many people have the freedom to choose where they buy their electricity thanks to deregulation. This means that you, the customer are in complete control.
1. Why Are There So Many Texas Electricity Providers?
There are hundreds of electricity companies operating in Texas because of the state’s deregulated energy market. There are also many energy plans.
In 2002, the Texas legislature approved a bill that deregulated the energy market. The government made it possible for retailers to be competitive for business by allowing REPs (retail energy providers) to do so.
Texas’s energy market is only 85% open. This means that not all areas in Texas allow residents to choose their energy provider. There are exceptions to this rule: electric cooperatives, municipalities with proprietary utility companies, and those who have the right to join deregulation.
However, investor-owned companies must be included in deregulation. The majority of Texas is part of the Texas Deregulated Market, with a few exceptions like Dallas and Houston. Texas cities like Austin or San Antonio, however, are not.
To find out if your Texas home is located in an area that is not deregulated, enter your ZIP code online. Deregulation has meant that most Texans – whether they’re looking for residential or commercial electricity – have many choices when it comes time to decide which REP to choose. Retail electricity creates competition. This is good news for you as you have the Electricity Choice and can find the lowest electricity rates for your home and business.
2. How Do You Find The Right Electricity Supplier For You?
Start by going to your state’s website for a public service commission. This will give you a list of all your options. It is much easier than you might think. These websites often provide a side-by-side comparison that is simple to understand and follow. You may need to enter your zip code or city depending on where you live to narrow down the options available to you.
Once you have a list of options, you can start comparing energy prices and plans. These are the three most important things to consider when looking for an electric plan.
Rate
This is the unit price of electricity. It is calculated by kilowatt-hours (kWh). To give context, an average U.S. household consumes 911 kWh per month. However, it is important to keep in mind that there are many factors that can affect your electricity consumption. Season, family size, and the number of energy-efficient appliances in your home are all factors that can affect your electricity usage.
Rate Type
The rate type can have a major impact on the amount you end up paying for electricity. Some companies offer fixed-rate plans while others offer variable-rate options. It is important to know the differences between them.
- A fixed-rate plan locks in the same electricity rate for a set number of months. It is usually between 3 and 36 months. What is the benefit of a fixed-rate plan? Because the market price of electricity can fluctuate from month to month, a fixed-rate plan offers stability and predictability for your household budget.
- A variable-rate plan, however, will see you pay a slightly different rate each month depending on what the market rate is. The good news is that you don’t need to sign a contract and can switch to another provider easily. Unexpectedly, your bill may go up.
Plan Features
While price is an important aspect of any new energy plan there are many other factors you should take into consideration. All selling features are applicable, including contract length, bonuses, rewards, and eco-friendly practices. These qualities can vary from one plan to another (and company to company), so it is up to you to choose the best energy plan for your family, home, and budget.
3. How Do You Sign Up For Electricity?
After you’ve weighed all your options and decided on the right provider for you, it is time to sign up!
To find your state’s default electric utility, first, check the website of your state’s public utility. You will need to register here in most states (except Texas) since the utility company responsible for your area owns and delivers electricity. The default utility can also sell electricity.
You can usually open an account online with the utility provider. To verify your identity, they will request information such as your name and address. They will also ask you to specify when the service starts. If you do not choose another supplier, the utility will become your supplier.
Next, visit the website of the competitor supplier and choose the plan that is right for you. Next, you will need to provide your service address and your name. The account number for your default company must be provided. This number can be found on your last bill or you can call the company to speak with a representative.
No matter what plan you choose it is important to set up a reminder one month before your service contract expires. Although many companies will remind you, it is a good idea to have a backup plan in case of an emergency. You’ll be able to better decide if it’s worth staying, or if it’s time for you to move on to something else.
Bottom Line
Many people would prefer to eat brussel sprouts instead of shopping for electricity. With the right tools, you can save hundreds of dollars in just minutes. Consumers must be informed and involved in deregulation to ensure it works as promised. You’ll be amazed at how much you can save. Then, tell your friends and neighbors. You’ll be a blessing to them.