As a resident of Texas, you have a choice when it comes to choosing a new electricity service provider, but it can be overwhelming. With so many rates, deals, and contract types out there, you may have a hard time picking the right one. Trying to navigate through it all can actually discourage you from switching. Don’t fret! We are here to help.
Here is all you need to know about choosing the best electric supplier.
Evaluate Your Current Costs
The best place to get started is to look at the current electricity price that you pay every month. Doing so will help you determine how much you can save by switching to some other service provider. If you are looking to compare the prices, you must look at the electricity supply charges on your utility bill. These charges will be expressed in cents per kilowatt-hour of electricity.
How can you be sure you are paying too much? If you have not switched electric suppliers, you probably are. Due to their regional control, state utility companies try to increase electricity prices at all times. And the increased prices hardly get shown down by the regulators.
Pick the Right Plan
Here are some of the most common plans offered by a retail electric service provider.
Fixed-Rate Plan: In this plan, the price you pay per kilowatt-hour of electricity for the whole contract duration will be locked. This is the case even if the price of wholesale electricity fluctuates. Not only are these plans affordable, but they offer security as well. Also, they carry cancellation fees, should you decide to terminate the contract sooner.
Variable Rate Plan: In a variable rate plan, there is no locked-in rate. And the price of the unit of electricity might be lower one month and more costly the next month. The benefit is that you don’t have to deal with a commitment to stay on a variable rate contract. That way you can switch to another electric provider without facing a penalty.
If you happen to opt for this plan, you can top up power for your entire home as you go. It seems more like a prepaid cell phone. However, if you forget to top up when your balance runs low, you might find yourself without electricity halfway through a hot shower or when you’re baking something. This is because the electric company will probably have you disconnected.
Carry Out a Thorough Research of Suppliers
Needless to say, you want to ensure you are signing up with a trusted and renowned company for the cheapest electricity deals. Gathering more information about the new electricity service provider upfront will be good for you. However, there are some vital things you must know about:
Rates: The electricity rate will possibly be the most significant factor when it comes to making an informed decision. That is because it will determine the overall price of your electric bill every month. You should only consider switching if the new rate per kWh is lower than the current one.
Unsure about the current rate? No problem! Take your current electricity bill and find the price (in cents per kilowatt-hour) under the supply charges. That’s the current rate which is paid to the electric supplier for supplying one kilowatt of power.
Reliability: People want to feel as if they are contributing their bit to a positive change in the world. There are some electricity companies that do a lot more than just offering lower electricity rates. Does your current electricity provider source deal with renewable energy? Or, do they reinvest some of the profits earned into the development projects of the local community? These reasons will help you to pick the best supplier.
Reputation: With hundreds of electricity suppliers out there, you must know which ones to avoid. To win over customers, some shady companies involve in devious marketing tactics, offer exceptionally low rates so they can shock you with higher fees later.
The best way to deal with such dubious suppliers and assess their reputation is to look them up on the BBB (short for Better Business Bureau) website.
Go Through Your Current Contract and Plan
Switched to a new electricity supplier in the past? Even if you had, there is no way you cannot do it again. Just like with any other product type you consume on a regular basis, you should always try to find a great deal and not to mention, some extra money in your wallet.
Having said that, switching electric service providers can be expensive if you like to glance over the fine print in your contract. For instance, if you’re currently on a fixed-rate electricity plan, you might have to face a penalty for switching out too early. You must have a clear idea about Texas electricity rate plans before making your choice.
It may seem very dramatic to hear that picking an electricity service provider is one of the most crucial decisions you can make. But you need to consider what your electric company is responsible for and the obvious role these aspects play in your day-to-day life. A lot of people don’t normally put their thought into their electric company, but they should. Doing so will help them meet their needs and budget. Don’t forget that the type of provider you choose can have a great influence on the safety and comfort of your home.
If you are looking for the best and cheapest deals on electricity, contact ServiceDealz – a leading digital deal-hunting platform – to help you get the deals you are after. We take care of all the hassles involved in the deal search process and present you the ones that save you big.
Blogger & Writer from Dallas, Texas
We are working on support this mode yet. Please go back to portrait mode for the best experience