Compare Texas Electric Providers

How to Best Compare Electric Providers in Texas

There are many factors to consider when comparing one electric provider to another.

Whether you’re a Texas Native or moving to Texas from another state, chances are that you may have many electricity companies you can choose from if you are in a deregulated area. We’ve compiled data from Power to Choose to provide you with great head-to-head comparisons of some of Texas’ most infamous light companies. Whether you are wanting to compare Reliant Energy vs TXU Energy or Just Energy vs Direct Energy, we’re here to provide you with a library of great resources and some tips on what to look for.

While most people search for the cheapest electricity rates in Texas, there is more to consider than meets the eye. To better understand how to compare electric companies here is a quick breakdown of some factors to consider and what they mean.

The energy rate is the price you pay for the electricity supplied per kWh as opposed to the average rate which includes the energy rate as well as TDU charges. Most EFLs and electricity bills do provide a detailed breakdown of the transmission and distribution charges from the utility (unless you enrolled in a bundled plan). Although the rate price is important one should also consider whether the rate is a fixed rate or variable rate. A fixed rate plan is a locked-in rate that will remain the same throughout the duration of your contract. The benefit of enrolling in a long-term electricity plan with a fixed rate is that your rate is protected for the duration of the term despite the current market value. On the other hand, a variable rate can change at any moment due to market value. Some benefits include lower rates if the market value is low and perhaps more flexibility if you plan on switching providers. A pitfall of a variable rate is an unexpected increase in bill if market rates increase.

The term length refers to the length of the contract. People interested in longer term plans may enroll in a 36-, 48-, or 60-month plan. Others may prefer a shorter term and may enroll in plans for 12 months or shorter. If you enroll in a fixed rate product with a great rate, a longer term is recommended to lock in at that specific rate for the contract’s duration. If a consumer terminates the contract before the term is over a fee may apply. The cancellation fee, also known as the Early Termination Fee (ETF), varies from plans and electricity providers.

Another factor that could impact enrolling for electric services is whether a deposit needs to be paid. The deposit is an upfront fee that needs to be placed prior to initiating service. The deposit amount varies from electric companies. Some light companies may require no deposit, while others do require a deposit that is fully refundable. We suggest also asking the electric companies if there are any deposit waivers you may qualify for.

Some plans do have renewable energy content which is the energy percentage produced from renewable resources (green energy). This may be an important factor to consider for consumers who want to support green initiatives.

While there are other factors to consider, which will be explained further on our comparison pages, having fundamental knowledge of the items we covered above will set you off to a great start. The perks of living in a deregulated energy market are having the power to choose which electricity company you would like to enroll with. Although the choices may seem overwhelming, we’re here to help guide you. Let’s help you see which plans best fit your values, personal and budget goals.