Electric bills for customers in the Houston area can more than double in summer months, mainly because air conditioning. Not coincidentally, electric rates also rise in the summer months because of this increase in demand. The most dramatic rate increases occur in month-to-month plans, but electric rates do increase across the board for all fixed-rate contract lengths.
But competition didn't necessarily end up cutting prices, according to the report. One contributing factor is confusion among customers as they try to choose among scores of retail electricity providers and the overwhelming variation of plans, leading many to just stick with familiar companies rather than look for better deals, according to the Texas Coalition for Affordable Power .
1. After your contract ends, the energy company will send you a notification of your rate increasing to a variable rate (which usually translates to 2-3 cents higher/kWh by a certain date). They are supposed to notify you of this change. I've noticed as a customer, we get short-changed of one month from the contract rate (if you signed for 7 cents for 6 months, you'll only get that for 5 months). If you don't call, your rate goes up significantly if you don't call to change to a cheaper contract. Tell them you want the cheapest rate or you will cancel with their company.
Switching electricity supplier could shave pounds off your bills. But it’s not always about how much hard cash you could save. You might be fed up with poor customer service, you might want greater visibility of your usage through an app or you might want to choose your supplier based on their green credentials, or whether they supply a smart meter.
Finding the best electricity company in Houston for your home doesn't have to be difficult. Here at Direct Energy, we are committed to helping you Use Less of What We Sell™ with our personalized energy insights tool Direct Your Energy. Take control of your electricity cost and your Houston power bill with easy energy usage tracking and energy efficiency insights.
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On the one hand, long-term, fixed-rate (contract) plans offer stability in pricing. If energy supply costs suddenly go up in your area, you won’t be left paying more than what you bargained for. You’ll have peace-of-mind. If you want to switch out of your contract before it ends with a lower cost plan, you’ll likely face a cancellation fee (early termination fee).