8 things to remember while looking for the cheapest electricity rates in Texas

Barring a few regions, electricity is deregulated in Texas. So, households and commercial establishments in Texas can choose their own retail electricity provider. However, this does not guarantee low electricity rates. If you are searching for the cheapest electricity rates in Texas, you need to compare the rates offered by various retail electricity providers. Nevertheless, the lowest prices should not be the only criteria one considers while selecting an electricity provider. Electricity is an essential service. So, while searching for an electricity provider, you need to review its services too. The electricity provider needs to offer prompt assistance in case of outages. You also need to be aware of the fine print in the contracts offered by these providers so that you don’t get conned.

What should one keep in mind while searching for a retail electricity provider?

• When you are looking for a retail electricity provider, you need to weigh your options carefully. Don’t just pick a provider who offers the cheapest electricity rates in Texas.
• While you’re looking for the cheapest electricity rates in Texas, you also need to look for other hidden terms and conditions that may not be stated by the electric utility companies explicitly.

Is there any penalty for over-consumption of electricity?

• Though the energy industry in Texas has been deregulated, it has also become a market where dishonest electric utility companies are out to prey on unsuspecting consumers.
• Some of the companies that provide the cheapest electricity rates in Texas charge a penalty if you don’t hit the exact electricity usage mark. So, if the contract was for a monthly consumption of 2000 KWh at $1.2 per KWh, and your consumption exceeds that usage just by two or three units, you are penalized for it. The bill for that month will include a hefty charge for exceeding the stated limit.
• Many consumers face such a situation, but it is not possible to do much since they have already signed the contract. So, before you make the same mistake, make sure that there is no penalty for overshooting the electric consumption by a small percentage.

Is it smart to sign a electricity contract offered by a salesperson?

• Today, several salespeople go door-to-door selling electricity plans. These people work for third parties and would say anything to get you to sign a contract.
• It may be an expensive mistake to believe everything that they say, and sign a contract with an electric company in Texas without reading it carefully.

Do electric companies provide free electricity plans?

• Yes, such plans do exist, but you need to be aware of any hidden clauses that may be a part of the contract.
• Ads for free electricity pop up in different places. While signing a contract with a company that promises free electricity for a certain period, you need to go through the fine print carefully.
• These companies may charge outrageous rates at other times of the day or after the free period ends. So, be careful of those companies that promise free electricity.

What fees do retail electric providers charge for their services?

• While the basic rate may be low, retail electricity companies add a host of additional charges. So, at the end of the month, you are stuck with a hefty electricity bill.
• Look at the various fees that retail electricity providers are charging. Some companies also charge additional fees for not consuming the minimum amount of electricity.
• If you don’t read the fine print carefully, you may have to shell out a hefty sum at the end of the month.

Should you opt for smaller electric utility companies?

• Today, some small electric utility companies offer the cheapest electricity rates in Texas.
• Although some of these companies offer the cheapest electricity rates in Texas, if you buy electricity from them, you may be in for some surprises during outages or accidents.
• Smaller companies often cut corners to make a profit. So, you may not get good customer support in the case of outrages.
• You may not even get 24-hour customer service, which is essential while dealing with something as crucial as electricity.
• It is not a good idea to opt for companies that buy electricity at wholesale rates and sell it at retail prices to make a profit.

What should one do if they live in a mandatory cooperative?

• If you are in a cooperative, it is mandatory for you to get the service approved by the co-op.
• If you are not, it is better for you to pick amongst one of the top 50 electric utility companies in Texas.

Should you choose one of the biggest names in the energy industry?

• The biggest names don’t guarantee the cheapest electricity rates in Texas. These companies hire actors and athletes to hawk their products, but that also makes their services expensive.
• Although these companies may not give cheaper electricity, they may offer better services than the smaller companies. So, weigh your options before choosing an electricity provider in Texas.