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.

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.

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.

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.

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.

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

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 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.

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!