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Flat Rate Electricity in Houston, Texas

The electricity market in Texas is extremely competitive and there are seemingly unlimited options to choose from. Texas is a state with deregulated electricity, which means that you have the freedom to choose your own electricity provider. These providers are known as REPs or retail electric providers, and there are upwards of 100 to choose from throughout Texas.

Each of these REPs has plans and pricing structures in place that make it even more difficult to choose the right plan. If you’re at your wit’s end with which company and plan to choose, contact us at EnerGenie. We’ll choose the right plan for you based on your needs and location and save you loads of money in the process.

What is a Flat Rate Electricity Plan?

A flat-rate plan is one of the many different types of electricity plans available to choose from in Texas. Technically speaking, flat-rate plans are more of a pricing structure within a plan than a plan itself. If you’ve ever built a home or hired someone to do a one-time job for you, there’s a good chance that they charged you a flat rate.

Flat-rate electricity plans work very similarly to flat rates in other areas of life. Specific plans, however, are set up in different ways. In most cases, however, flat-rate plans are part of a fixed or variable rate plan. Essentially, though, you pay a flat rate or fee for electricity each month based on how much you use.

Flat Rate as Part of a Tiered Plan

Tiered plans are electricity plans where you pay different amounts of money based on how much electricity you use. For example, you might sign up for a fixed, tiered plan where you pay $150 for any electricity up to 1,500 kilowatts. If you go over that amount, however, your rate jumps up to $200 for all electricity up to 2,000 kW.

In this example, the REP is protecting themselves because as you use more electricity, you pay for more electricity. The only person who can get ripped off in this example is you if you decide to try to save money by using less electricity. Whether you use 500 kW or 1,500 kW, you’re paying the same amount.

Flat Rate as Part of a Fixed-Rate Plan

Another version of a flat-rate plan is when you pay the same amount no matter how much electricity you use. This means that whether you use 500 kW of electricity or 2,000 kW, you’ll pay the same amount. REPs typically charge on the high end for this type of flat-rate plan to protect themselves in case you use large amounts of power.

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Are Flat Rate Plans Different in Houston?

Houston has a lot of unique features and structures, and a ton of diversity among the people that live there. However, flat-rate electricity plans aren’t any different in Houston than in any other part of Texas. There may be power companies that serve the Houston area that isn’t available elsewhere, but they will likely offer similar flat-rate plans there as anywhere else.

What Other Types of Electricity Plans are Available in Houston?

If you’re not sold on a flat-rate electricity plan, here are a few of the other options available to you.

Prepaid Plans

Prepaid electricity plans are similar to prepaid phone plans. You decide at the beginning of each month how much electricity you plan to use and pay the current electricity rate up-front. If you go over your allotted amount, you will have to contact your company and purchase more, as not all REPs will automatically keep your lights on.

Variable-Rate Plans

Variable-rate plans are more of a gamble than prepaid or fixed-rate plans, and they could end up costing you big or saving you money. Electricity rates in Texas fluctuate constantly which means that you could pay 10 cents per kWh one month and 15 cents the next month. However, if market prices plummet, you might be able to save money on your electricity rate.

Fixed-Rate Plans

Unlike variable-rate plans, fixed-rate plans are solid, steady, and unchanging until your contract ends. The rate that you sign up for is the rate that you will pay until you terminate your contract or it runs its course. This type of plan is safer and less volatile, but it can be tough to get out of if you discover that you’re paying more than you should be. Contact us at EnerGenie if you’re trapped in an expensive contract and want to start saving money!

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What are the Benefits of a Flat Rate Electricity Plan?

While flat-rate electricity plans aren’t for everyone, they certainly have their benefits. With flat-rate plans, you know exactly how much you’re paying each month no matter how much electricity you use. This doesn’t always hold true for tiered, flat-rate plans, however, as the cost fluctuates according to usage. Here are some of the main benefits of a flat-rate electricity plan.

  • You can plan ahead for your budget because you know how much money you’ll spend each month.
  • You have more control over the cost of your electricity.
  • You’ll save big time in the summer when you have to crank up your air conditioner.
  • If your flat-rate plan is fixed, your rates won’t go up unexpectedly.

How to Find the Best Electricity Plan in Houston

Whether you want a flat-rate plan or any other type of electricity plan in Houston, Energenie is here to help. Energenie is an electricity concierge service that uses your location and average energy usage to determine which plan is right for you. Our goal is to save you money and get you locked into a great electricity plan. We’ll even monitor your electricity plan after you’re signed up in case there are rate changes and a better plan comes along.

EnerGenie isn’t associated with any REPs in particular, which means we won’t steer you in a biased direction. Our only goal is to save you money and provide you with an electrical service that you can rely on. If you’re curious about how much money you’ll save each month when you switch with EnerGenie, see the savings for yourself with our Energy Saving Calculator.

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How EnerGenie Works

EnerGenie technology works behind the scenes to save you money and be your energy concierge, to give you, the homeowner, peace of mind.

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