Texas electricity customers face historically high electricity prices this summer. The rising energy rates are not so much a result of the cost of natural gas, the primary commodity used to generate electricity, but are a result of increased demand and anticipated shortages in supply. What does this mean for customers on variable rate, month to month electricity plans? High, high, high electricity rates for the dog days of summer. Who is most at risk? Prepaid electricity customers and customers on holdover rates from expired electricity contracts.
variable-rate electricity plans
If you’ve shopped for an electricity plan in Texas recently, you’ve probably noticed that rates are rising. In fact, some of the energy rates for Texas plans have increased over 30% so far in 2018 and will continue to rise as the summer approaches.
What’s contributing to this rise? In short, it’s simple economics. Understanding the market forces at play in ERCOT will help you make an informed decision about your energy needs going into the summer and avoid a painful utility bill.
It’s no secret that the cost of electricity can vary widely from month to month.
Most electricity customers discover this firsthand if they have signed up for a month-to-month electricity plan which has a variable rate. There are price fluctuations that happen each month depending on factors such as customer demand (largely related to weather), and the available supply of electricity. To avoid these price swings, most residential electric customers choose a fixed rate electricity contract that locks in a favorable energy rate for a fixed length of time.
How do you determine what length of contract to sign? Is a short term or long term electricity contract better? It depends largely on the region of the country that you live in and the time of year that you are shopping for a fixed rate.
Electricity contract term lengths vary and can be as short as 3 months or as long as 5 years. Most customers select contract terms between 6 months to 2 years. Learn about the benefits of the fixed rate contract and how to determine the best electricity contract length for you.
Electricity deregulation gives consumers the power to choose their own electricity provider and an electricity plan that fits their budget. With this freedom comes responsibility. That fabulous rate you signed up for with your electricity provider will come to an end when your contract expires.
Don’t let your electricity contract expire without taking action. If you let your contract expire without renewing or switching providers, you will have a shocking electric bill coming your way. Keeping your rate low isn’t overly difficult, but it does require some planning and timely action.
Looking for cheap electricity in Dallas? You are not alone. Dallas consumers always know how to look for a good deal. And searches for “best electricity company DFW,” “cheap electricity in Dallas” and “cheapest electricity near me” have been trending.
The fact is, when you shop for cheap energy for your home or business, you can have significant cost savings. So if you want to find cheap electricity in Dallas, or the best electricity company in Dallas, here’s how to do it.
Looking for the cheapest electricity rates in Houston? You’re not alone. Searches for best electricity rates, cheap energy rates, cheapest electricity plans are trending in Houston.
But finding cheap electricity in Houston is harder than you think. And we’re here to make it easy. (In a hurry? Jump to list of cheapest electricity plans in Houston.)
Choosing the electricity plan type is just one of many choices you’ll have when choosing your new electricity plan. It can be confusing to sort through the different options available, especially if you’ve never bought an electricity plan before. Take a breath, because finding the perfect plan rate type for your family or small business is a lot easier than it looks.
There are three main options for plan types: