When switching electricity, we all want to lock in the cheapest electricity rates. In our haste to make a service switch, we often neglect the most important contributor to finding the lowest electricity rates and that is the TIME. Your timing of the switch can make all the difference. Remember there is a strong relationship between the cost of energy and demand. Electricity rates fluctuate on a daily basis, which make it difficult to pinpoint the right time to make a switch. With ServiceDealz, you can rest assured for we’ll extend all the assistance you need in order to make an informed decision and choose the best electricity plan.
Prices of electricity are steadily ruled by the demand and weather conditions, except in the case of large-scale accidents and natural disasters. Electricity prices surge when demand surges and plunge when demand plunges. If we talk particularly about Texas, summer is usually quite hot and humid here and, as a result, there is a skyrocketing demand for electricity in the state. In 2019 alone, wholesale as well as retail energy rates witnessed an all-time high owing to the soaring mercury. Similarly, when demand is low (which is usually during winter), electricity rates also go down.
We see this pattern mainly because when demand increases, there’s a need to produce more energy. And extra demand puts additional pressure on the utilities to use alternative energy sources for meeting the increased demand. This adds to their operating costs. For example, when electricity demand registered a record-high in Texas last summer, energy rates also increased exponentially during the months of May, July, and August. To cope with this sudden rise in demand, coal plants had to be used alongside the natural gas plants. Notably, while coal plants are costlier, they aren’t as effective as natural gas plants. There was a considerable jump of around 2.9% in Texas electricity rates that began in the month of March and continued till the year-end.
As electricity rates are directly affected by the consumer demand, it makes sense to note seasonal trends of energy demand round the year. To sum it up, demand for electricity tends to increase during summer and, sometimes, winter months while it is the lowest during spring and fall months. This pattern is quite obvious and normal. But talking about Texas, specifically, summer tends to be hotter than other states and that results in increased demand for electricity during summer months.
Electricity demand is low between December and March
During winter, electricity demand goes drastically down, and, resultantly, the best electricity companies in Texas slash their rates. In other words, the best time to switch electricity in Texas is right now! You can search for the cheapest electricity rates in Texas from the top providers and make a service switch to curb your electricity expenses.
How to make your electricity bill immune to fluctuating market rates?
Market rates of electricity fluctuate every day but you can provide your electricity bill with the shield that makes it immune to these price hikes.
When searching for cheap electricity rates from the best electricity companies in Texas, make sure you sign up for the lowest fixed-rate plan considering your kWh usage. If you shop for your electricity plan wisely and plan the switch strategically, you can easily score the lowest electricity rates in the market. With a fixed-rate plan, you don’t have to keep worrying about the fluctuating demand, prices, and changing weather.
With ServiceDealz, you can lock in the cheapest electricity prices from the top electricity providers in Texas and enjoy cheaper energy throughout the year. It’s easy as 1-2-3! Start your search by entering your area zip code, add deals to compare, and choose the deal that best fits your usage and requirement.
Do you know how you get electricity to your home?
Thanks to the deregulated energy market in Texas, you can evaluate and choose electricity plans fit for your usage and budget. But most customers don’t understand why they end up receiving electricity bills different from what they signed up for? Let me quickly explain the reason why your electricity bill doesn’t seem to be in sync with the energy rate you shopped for. Essentially, a retail electricity provider buys electricity from a power generation company. The retail electricity provider works with TDUs (Transmission and Distribution Utilities) to ensure power is delivered to your doorstep.
Related Reading: 5 Tips to Reduce Your Business Electric Bill
Also referred to as TDSPs (Transmission/Distribution Service Providers), TDUs are Transmission and Distribution Utilities. The TDUs & TDSPs that serve in Texas include:
TNMP (Texas-New Mexico Power)
Oncor Electric Delivery Company
AEP Texas Central Division
AEP Texas North Division
These companies ensure the transmission and distribution of electricity to homes and businesses in a specified area. A TDU owns, repairs, and maintains the power lines, poles, wires, and meters in their serviceability area. Since TDUs have to maintain the infrastructure to bring electricity to your home, the cost changes and increases accordingly.
Thanks to the deregulated energy market in Texas, you can choose electricity plans in Houston, Dallas, Fort Worth, Plano, Arlington, Pharr, The Woodlands, Austin, Laredo, Garland, Killeen, Spring, Frisco, Irving, Denton, Grand Prairie, Mc-Allen, Euless, Harlingen, Grapevine, Victoria Rowlett, Pflugerville, DeSoto, Galveston, Mansfield, Edinburg, Conroe, Flower Mound, San Angelo, Mission, Baytown, Temple, Atascocita, Missouri City, Georgetown, Abilene, Lewisville, Tyler, Wichita Falls, Allen, Richardson, League City, Pearland, Brownsville, Mesquite, McKinney, Round Rock, Carrollton, Odessa, Corpus Christi, Waco, Suger Land, Midland and other cities of Texas.
Call us for help in choosing the best electricity deals. Let’s simplify the electricity switch for you!
Blogger & Writer from Dallas, Texas
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