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Keeping on top: With deregulation, a whole host of electric resellers jumped into the market because there’s a whole lot of electricity to sell: if Texas were a country, it’d be the 11th largest electricity consumer in the world! Just by itself, it uses as much electricity as Spain or Great Britain! That means there’s a whole lot of information you have to find, absorb, and process to make sure you’re getting the best rate for your needs.
Knowing how much electricity you use each month is important to finding the cheapest electricity plan. For Houstonians, usage is typically the lowest in the winter and highest in the summer. Your specific usage levels can be determined by simply looking back at previous electric bills and finding the kWh used. To avoid electric bill surprises during the peak summer months, you’ll need to accurately know your peak electricity usage which typically occurs in August.
Consumers were promised cheaper power when Texas deregulated its electricity markets in 2002 at the urging of big industrial users and power companies. Average retail prices have declined by more than 60 percent since 2001, although much of that decline is due to the plunge in natural gas prices that followed advances in shale drilling and consequently wholesale power prices. Proponents of deregulation argue that they still have choices that can save them money.
That means that customers in Houston paid an average of $5,500 more for electricity over a 14-year time span beginning in 2002, according to the group that buys electricity on behalf of municipal governments in Texas. The calculation, which uses data from the U.S. Energy Information Administration, assumes monthly electricity use of 1,300 kilowatt hours.
Texas deregulation began in early 2002 with the approval of Texas Senate Bill Number 7. Now, the majority of the state, including Houston, has the power to select their own provider. Previously, consumers were only given one option for an energy supplier. Deregulation has allowed competition in the energy market and has given residents the power to choose which energy provider sells them energy and bills them each month.
It is unlikely that you’ll see any change at all. You will be receiving the same electricity as you always have been, just from a different company. The only difference you definitely will see will be smaller charges for your electricity. By using our price comparison service you’ll be able to cut costs to your energy tariffs and save more money on electricity and gas.
Prices are expected to go up so quickly that Direct Energy has stopped selling its "Power-to-Go" plan to new customers this summer, a prepaid plan that changes rates each month depending on wholesale prices. Instead, the company is encouraging its customers to lock in for longer periods of time. Customers who used up to 2,000 kilowatts each month could get a 12-month contract for 11.7 cents per kilowatt hour in May compared to the same plan for 9.1 cents per kilowatt hour one year earlier.
Consumers in Houston, Dallas, Fort Worth and Corpus Christi were promised bargains on electricity when the Texas Legislature deregulated the electricity market. But 16 years later they're still paying more for electricity than their counterparts in cities Texas lawmakers exempted from deregulation such as Austin and San Antonio, according to the Texas Coalition for Affordable Power which analyzed federal electricity pricing data.
But in Houston, where there are 52 companies on Power to Choose each offering several different power plans, there might be too many choices. Economists have found that when confronted with a large number of choices, most people tend to do nothing. In one well-known behavioral economics experiment, researchers set out six samples of fruit jams at a grocery store, enticing 30 percent of shoppers to buy the product. But when they increased the number of samples to 24, only 3 percent of shoppers made a purchase.
You have the power to choose the best power company in Houston for your needs before settling into your new home. A fixed supply rate will give you the same rate per kWh every month. It won’t fluctuate with the energy market or change during your contract. Most Houston energy providers offer some type of fixed-rate supply plans. Another popular option is a variable supply rate. Some people prefer variable supply rates because they can change along with market prices. When market prices go up your rate per kWh may increase, but when they decrease you could benefit from a lower supply rate. SaveOnEnergy.com can help you make sense of your options.
Lots of sites can say 'CHEAPEST ELECTRICITY IN TEXAS!', but only Texas Electricity Ratings gives you the tools to know you're getting a great company to go with the cheap rate. Because what good is a cheap rate if your bills get screwed up and your payments get lost? We've collected thousands of reviews from customers just like you, who need to save money on their electricity bill but don't want the headaches and hassles of a fly-by-night electricity supplier.
We've pioneered our techniques and grown our expertise in the retail energy industry for more than a decade. With hundreds of thousands of customers and firm investor backing, we're a company you can count on. Spark Energy is also proud to be a publically traded company: our NASDAQ ticker is SPKE. Visit our investor relations page for more information.
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).