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.
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.
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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.
Take a few minutes to sit down and do some digging.  Not only do you want to find out exactly which Houston power companies operate in your neighborhood and what it is they have to offer, but you want to find out which are the cheap power companies in Houston.  You’ve just bought a home!  You need to save as much as possible everywhere you can until you can get at least some of the move-in expenses paid down.  Now, while it’s true that most Retail Electric Providers require a deposit if your credit is poor or you haven’t had a utility in your name, not all of them do.  Even with those that do, some will accept a letter of guarantee, where someone else guarantees in writing that they’ll pay the bill if you don’t, in place of a cash deposit.  This can be even more useful once you consider that the typical deposit is 1/5th to 1/6th of an annual bill – if it’s a brand-new home, it might be that the only record of use is that of the construction company and that would be a seriously large deposit, indeed!
If you live in the greater Houston area, there are over 60 different energy suppliers competing for your business. Many of these providers have websites that are confusing and difficult to navigate, their rates buried in misleading advertising and dense jargon. Who has the time to sort through and keep track of options across all these different sites?
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