We are often asked, what’s the best time to shop for electricity in Texas? The reality is, you don’t always get to choose when you shop for electricity, as it depends on your contract expiration. But if you have a choice? There are certain months to pick and certain months to avoid.
Best & Worst Times to Shop for Texas Electricity
Power prices in Texas swing with our weather extremes. Based on historical rate information, here are the best and worst times to shop.
- The best times to shop for an electricity plan are spring and fall. If you can, try to time your contract expiration for April, May or October.
- The worst times to shop for electricity in Texas are summer and winter. Specifically, for the cheapest rates, avoid July, August, January and February.
The reality is, you’re likely in a cycle of shopping based on when you first shopped. But how do you break that cycle?
How to Shift Your Contract Expiration Date
What if you’re in a contract expiration cycle that has you shopping in the summer or winter, when prices are at their highest? If you want to shift your contract expiration date, here are a couple options:
- Select an odd-term plan. Look for a contract term that will break you out of your renewal cycle, like an 8 or 14 month plan.
- Go month to month temporarily. We tell everyone to avoid month to month variable rate agreements. But if you’re using it as a strategy to shift your expiration date, this can be a good tool.
- Pay an early termination fee. This is a good option if you have an early termination fee that depends on the number of months remaining in your agreement.
- Switch to a electricity company that will pay your early termination fee. That way you can switch immediately without worrying about your contract expiration date. For example, Rhythm will reimburse your contract early termination fee when you switch, up to $150.
If you’re stuck in a contract with an electricity provider, just remember there are options. Shifting your contract expiration date does take some work, but it could help lower your rate now and in the future.
Why You Should Shop Your Rate Every Time
We encourage our customers to shop their electricity plan at every expiration. Why? Because most REPs offer new customers their best price.
When you shop every time your contract expires, you can take advantage of this.
You can start shopping 60 days before your expiration date. This gives you a lot of flexibility and options. Plus it can help avoid shopping during peak season. For example, if your contact expires in July, you can start price shopping in May.
If you shop ahead of your contract expiration, make sure you pick your switch date with the new provider. Pick a switch date within 14 days of your expiration date of your current contract. That way you avoid any early termination fee with your current provider.
Whatever you do, don’t forget to shop. In fact, sign up for our electricity plan expiration reminder service right now while you’re thinking of it. We’ll remind you to come back and shop for electricity.