Something that nearly all Texans care about is saving money. There are different degrees of thiriftiness, but no one wants to waste money or be taken advantage of. An area where many people like to save money is with their monthly electric bill.

However, there’s more to cheap electric than simply finding the company that offers the lowest rates. This article will look at who the cheapest electricity companies are in Texas. We’ll also look at what to watch out for when you’re selecting your electric company.

If you’re basing your search based on who the cheapest electricity company in Texas is, you’ll be sorely disappointed. Simply put, there are no “cheap” electricity companies in Texas. Because electricity is deregulated in most of Texas, there are over a hundred different electric companies.

Each of these companies has their own plans, deals, and rewards that they offer. According to Texas law, you have the power to choose any power company that services your area. Because of the stiff competition that deregulation results in, finding the cheapest deal is difficult. That’s often because what looks like a great deal can end up costing you big bucks down the road.

While there aren’t any cheap electricity companies, there are companies that offer great plans. People often get sucked into looking at the cost/kWh and that’s all they see. However, this is a terrible idea and one that will get you into trouble. What looks like the cheapest company or deal, isn’t always as good as it seems, and here’s why.

Most contracts that offer ridiculously low rates are doing so for a reason. There’s often a minimum usage requirement in the fine print of their contract. These sneaky requirements are tough to catch with an untrained eye. Here’s how they work.

John signs up for a plan where the listed price is 7.5 cents/kWh, which is well below the national average. It seems too good to be true, but John signs up anyways. He doesn’t realize that the price of 7.5 cents only applies if he uses 2,000 kilowatt-hours of electricity. Unfortunately, John is a single guy who isn’t at home a lot, and he only uses around 1,200-kilowatt hours per month.

When John gets his monthly statement, he sees that he’s been charged at a rate of 11 cents/kWh. Rather than paying the anticipated $90 for his electricity, he ends up paying $132. All because he overlooked the stipulation of a minimum usage requirement. Unfortunately, John signed a contract where he’s locked in for 12 months, and there’s nothing he can do to get out of it.

Another way “cheap” companies make money is via extra fees that you aren’t aware of

Sticking with the example above, John is unhappy and wants to terminate his contract before the 12 months. However, he also didn’t realize that his company charges an early termination fee of $150. Early cancellation fees are relatively standard, especially with plans that cost more than expected.

TDU delivery fees cover the cost of Transmission & Distribution Utilities to get electricity to your home. These fees are often tacked on in addition to your normal charges.

Another sneaky trick is to charge a base rate at the start of every month. Companies commonly use this trick to make an extra $5 to $10 per month for their users.

If you’re the victim of hidden fees in your contract, Contact us at Energenie to see how we can help!

If John decides to stick with his contract until the end of the 12-month period, he will then have the option to renew. He probably didn’t realize when he first signed up that his rates would go up at the end of the 12 months. Power companies aren’t obligated to warn you about this upcharge, and they will automatically enroll you into another 12-month contract at a higher rate.

Many “cheap” electricity companies also use gimmicks and rewards to entice you. Here are a few things to watch out for when companies offer deals that are too good to be true.

• Free nights and weekends

Free nights and weekends sound great until you realize that they charge double for electricity during the day, usually in the case of minimum usage fees. In the end, you might end up paying more because of the free nights and weekends.

• Gifts

If a company offers a free Nest Thermostat or Amazon Echo device, it’s usually because they plan to up your rate.

• Bonuses and rewards

Companies will also try to incentivize you with the promise of bonuses and rewards when you sign up with them. These bonuses and rewards rarely pay off in the end.

Perhaps the number one mistake that people make when it comes to electricity is thinking that today’s cheapest company will always be the most affordable company. This simply isn’t the case because of how competitive the market is and how much electricity rates fluctuate. There are constantly new companies and new plans popping up, and a better plan nearly always comes along.

Aside from newer and better deals coming along, you might also have needs that change. You might be single today and only use 1,000 kWh of electricity. What if you get into a relationship and start using double that amount? Or what if you have a business that takes off and you start using three or four times the electricity you’re currently using. In either case, you’ll likely want to shop around for a better deal than what you currently have. When you contact us and let us handle your electric plan, we notice when a better plan comes along.

No matter what your current situation is or what plan you’re locked into, Energenie can help. If you want to switch plans, Energenie will handle your current company and get you switched over in no time. If your contract has expired and you’re in the market for something completely different, Energenie has you covered.

All we need is your zip code, and we take care of the rest. We’ll find out which companies service your area and get you the best deal, not only for today but down the road as well.

EnerGenie is your personal electricity shopping assistant. By signing up with EnerGenie, you’ll have peace of mind knowing you have a cheap electricity rate locked in to avoid rate hikes. You’ll also never have to worry about falling onto a high variable electricity rate because we continuously monitor your account and the market to sign you up for another great rate when your contract is coming up for renewal.