Discount Power Plans: Are They Too Good to Be True?
Discount electricity plans advertising free nights and weekends, solar days, and more are tempting promotions that promise to slash your monthly electric bill. But are these plans too good to be true? The way these plans are advertised makes them sound like an excellent way to save, especially if you can cram all your high-energy consumption chores into the night. However, the reality is often different.
Before switching to a discount power plan featuring free electricity, it’s important to understand the facts and debunk some common myths about these offers.
The Different Types of “Free” Electricity Discount Plans Available in Texas
“Free” electricity plans may seem attractive, but they often come with potential drawbacks, such as higher rates during non-free periods. When considering one of the below plans, it is essential to carefully analyze the overall cost and your energy usage patterns before committing.
TYPES OF DISCOUNT ELECTRICITY PLANS
| Free Nights and Weekends Free electricity during nighttime hours and weekends | Free Days One or more free days of electricity each week, such as every Sunday | Top 7 Days Free Free electricity on the seven highest usage days of the month |
| Free Time-of-Use Free electricity during specific hours of the day, typically during off-peak times. Users must strictly adhere to these hours to maximize savings, which can be challenging. | Solar Days Free electricity during daylight hours when solar power generation is at its peak. | Free Weekends Free electricity every weekend, from Friday night through Sunday night. |
Understanding the Purpose and Impact of Free Nights and Weekends Electricity Plans
Electricity providers offer free nights and weekends to incentivize consumers to use electricity during off-peak hours. This helps power companies avoid outages and equalize energy usage across all times of day. By normalizing usage and demand, it keeps prices and services stable.
However, the way these plans are advertised to the public often doesn’t fully disclose the cost implications associated with these kinds of plans. That’s why Payless Power set out to debunk some of the popular myths associated with free nights and weekends electricity plans.
Be sure to consider the information below when evaluating a free nights and weekends plan.
Common Myths About Free Nights and Weekends Electricity Plans
Myth #1
Free Means Free, Right?
Sure, for free nights and weekends, electricity plans list your price per kilowatt hour as free within specific timeframes. However, to make an accurate cost comparison, you must compare the cost per kilowatt hour outside the free timeframes. Often, the cost per kilowatt hour is much higher when you still have to pay for electricity than other ‘traditional’ plans that charge you during all hours of the day.
Also many advertise an ‘average’ rate based on the assumption that a certain number of hours are free. The real rate you pay during the billable hours is higher.
Price Comparison
One of the leading providers in the state is offering a ‘Truly Free Weekends’ plan that advertises an 18.5¢ kWh. People think that means you are paying 18.5¢ kWh for the weekday charges. Not true. Looking at the EFL (electricity facts label) – the weekends are free, but the rate on weekdays is 22.3¢ kWh
The average rate Payless Power is charging during this same period is 15.4¢ – 31% less for weekday usage.
Myth Debunked: Even though you don’t pay for electricity on nights and weekends, you pay significantly more for the electricity you use the rest of the week.
Myth #2:
Free Nights and Weekends Electricity Plans Make Sense for Everyone
Marketing materials for free nights and weekends plans have stated that between 30% and 40% of electricity is used on nights and weekends. This statistic leads people to believe that switching to free nights and weekends can save 30% to 40% on their total electric bill.
Remember savings don’t translate because you often pay more for the electricity you use during weekdays.
Myth debunked: 30-40% of electricity is used on nights and weekends, which means 60-70% is used during weekdays. And, if you and your family spend a lot of time outside your home on weekends or go to bed before 10:00 p.m., you likely won’t see true cost savings from switching plans. Plus, in the summer, Texas residents use a lot of electricity in the daytime hours for air-conditioning. In our state that is the #1 use of electricity in the summer months.
Myth #3:
These Plans Automatically Equal Cost Savings
As we discussed in myths #1 and #2, genuine cost savings with free nights and weekends plans are not as high as some providers lead you to believe. The higher price per kilowatt hour sometimes leads to a higher bill than traditional or pay-as-you-go electricity plans.
These plans often have long contract periods and charge high cancellation fees that can ultimately trap consumers into paying a higher price for longer periods of time.
Myth debunked: If you don’t have a good idea of your electricity usage and when it happens, it can be challenging to make adjustments that take advantage of free nights and weekends.
Free Weekend Power Discounts Don’t Always Save You More
So, Is It Worth It?
All in all, free nights and weekends plans can save you money in the right situation but rarely save you as much as you think – and you have to manage your usage carefully to take advantage of it. Consumers have sometimes spent between $700 and $1,000 more per year on electricity after being locked into a long-term, high-energy price contract. Before getting locked into a contract, be sure to read the fine print of the plan you are signing up for so you completely understand the cost implications.
Be Aware of Other Electricity Discount Gimmicks
The Bullseye Myth: Understanding “Bill Credit” Offers
Many electricity plans advertise attractive bill credits if you hit specific usage targets. For example, an electric company might offer a significant bill credit at 1,000 kWh usage but charge a high rate per kWh if you miss this target.
The average Texas consumer uses approximately 1,250 kWh per month, some months more and some less, depending on the season, so hitting these targets is often impossible.
Payless Power offers simpler plans without such gimmicks, ensuring more predictable costs without the need to hit specific usage targets.
Why Choose Payless Power?
Choosing Payless Power for your electricity needs offers numerous benefits that ensure you get the best value for your money without unrealistic discount electricity plans, marketing gimmicks, or bill credit offers.
Find a Payless Power electricity plan that works for your lifestyle and budget.
