Watt Watchers of Texas: Texas is Too Good To Waste™

How to Choose an Energy Provider in Texas

January 21, 2021

Starting in 2002, Texas citizens were able to choose among various energy providers for their electricity needs. Several companies have entered the electricity market, which gives customers a competitive advantage.

Customers can choose which of the electricity providers best suits their needs based on their electricity usage, term lengths, costs, and many other factors. 

The goal of opening up the energy utility market is to ensure that Texans have the power to choose.

Factors to Consider When Choosing Your Energy Provider

Although choosing which energy provider is best for your home can feel overwhelming, it is manageable and your decision can save you money.

There are many factors to consider and lots of different providers to research, so it is a good idea to analyze your home's needs first so that you have a way to refine your search for the right electricity provider.

The following is a list of some of the most important factors to consider while choosing which electricity provider is the best option for your home:

  • Know your usage: Electricity is measured in kilowatt-hours (kwh), and each electricity provider charges a different amount per kWh.
  • Knowing how much electricity you use can determine how much you will be paying per kilowatt-hour. Knowing your usage can help you determine which price point works best for your home.
  • Figure out the right term length: Different providers will have different term lengths for their electricity contracts. If you are flexible with your term length, you may be able to negotiate a lower rate than a customer who requires a shorter-term size to avoid a long-term commitment. More extended contracts also may provide more price stability.
  • Decide on a plan type: There are two main types of plans available from most providers for their customers - fixed-rate and variable-rate. With a fixed-rate, you will lock in an electricity rate for the entire term of your contract, and it will not change if the energy prices rise or lower. 

If they do lower, you will likely miss out on a cheaper electric bill. Variable-rate plans determine the price you pay based on the fluctuations in the market price of energy. Some months may be higher or lower depending on weather, demand, fuel prices, distribution system, and the market.

  • Explore reward options: Some electricity plans offer rewards such as free electricity and credits for referrals. It is essential to research the possible tips you may get when making your decision on electricity providers.
  • Do your research: There are many different energy providers on the Texas market, so it is essential to thoroughly research which providers have the most attractive plans for you.

Many factors should be considered when choosing the energy provider that is best for you. These are some of the most important, but you should always decide whether an energy provider meets your individual needs.

The options can feel overwhelming, but with careful planning and research, it is possible to find the best plan for you. 

Watt Watchers of Texas is a Partner Program of Smart Energy Education.
Watt Watchers of Texas. Copyright © 2021 The University of Texas at Austin. All Rights Reserved.
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