Since the deregulation of Texas’s electricity industry in 2002, there has been an increase in numbers of Retail Energy Providers (REP) each with its own prices and requirements. This makes it a bit daunting when it comes to selecting the right energy provider and electricity plan with the lowest price. Here are our best tips to help you find the cheapest, prepaid electricity plan that best meets your needs.
What is Cheap Electricity?
Cheap electricity can best be described as an electricity plan with the lowest price per kilowatt-hour (kWh). By price, we mean the overall cost, including the delivery cost (commonly known as a bundled price).
Most people usually make the mistake of checking only the unit price, also known as an un-bundled price, and forgetting the other charges. This means that the actual price they end up paying may be much higher than they previously thought.
Bundled vs Un-Bundled Prices
Bundled Prices include both the energy price per unit and the delivery price, while un-bundled prices separate out the energy price per unit and the delivery cost. Both present their own pros and cons, so it’s important to evaluate which is the best option for you.
Comparing Electricity Costs
The Public Utility Commission of Texas (PUCT) recommends that electric companies display the average price per kWh in three categories:
- 2000 kWh
- 1000 kWh
- 500 kWh
This levels the ground and ensures that you are comparing bananas to bananas to help you get the cheapest electricity plan.
How to Choose the Cheapest Electricity Plan
- Know Your Consumption Rate: Choosing the wrong electricity plan without factoring in your energy consumption rate can cost you hundreds of dollars. Knowing your energy consumption rate will help you avoid overpaying and will enable you to compare electricity plans effectively.
- Be Conversant with Your Current Electricity Plan/Contract: By knowing the details of your contract, particularly the price aspect, you can be able to tell whether you are getting a fair deal from the new plan or not. Go through your electricity plan and:
- Establish how much you are charged per kilowatt-hour (kWh).
- Find out how long your contract is.
- Find out whether the plan is a variable or fixed.
- Then find out whether there is a company with an electricity plan that offers better terms than what you are currently on.
- Choose a Fixed or Variable Plan: You need to know the nature of the contract or plan you want to get into,such as whether the contract is a fixed or a variable contract. A fixed contract is usually a bit longer and is devoid of market price fluctuations.
- Search by Zip Code: Electricity prices change from place to place, so you must conduct your research using the area zip code to find the correct price. (Use Payless Power’s zip code lookup to find real-time rates for your area!)
- Carefully Read the Contract: Understanding your electricity needs helps you accurately compare prices per kWh. Make sure to consider other factors in the contact that impact your bill, like special pricing gimmicks and your monthly usage. A few cents per kWh can make a difference every month, and prepaid electricity allows you the flexibility to pay when it’s best for your household budget.
Save Now with Payless Power’s Prepaid Electricity
Finding the cheapest electricity plan is not an easy thing, but it is possible with these simple steps:
- You first need to understand your consumption rate then use this information to compare prices from the different electricity providers.
- When comparing the prices, make sure that you are comparing the overall price and not the energy price alone.
- And lastly, do your search based on your zip code to get the accurate price per kWh.
Choose Payless Power for affordable, proven prepaid electricity services. Contact our customer care number at 866-963-9353 or enter your zip code to find affordable electricity today.
