Texans have the right of choice in regards to electricity providers thanks to the energy deregulation in 2002. But then how can you get the cheapest electricity plan in Texas?
Since the deregulation of the electricity industry in 2002, there has been an increase in numbers of Retail Energy Providers (REP) each with its own prices and requirements. This, therefore, makes it a bit daunting when it comes to selecting the right energy provider with the lowest price. Below are some tips on how to choose the cheapest and the right prepaid electricity plan that best meets your needs.
How to get the cheapest prepaid electricity
Let us first begin by understanding what cheap electricity means. Cheap electricity can best be described as an electricity plan with the lowest price per kilowatt-hour. By price, we mean the overall cost, including the delivery cost. Most people usually make the mistake of checking only the unit price and forgetting the other charges. Note that some companies may display the ‘all-in’ rates or bundle rates. This bundle rate entails both the price per unit and the delivery price. Other prepaid electricity companies show only the ‘energy price’ or the un-bundled price, which, as the name implies, means the energy price devoid of the delivery cost.
This can be quite confusing as you may easily choose the un-bundled price thinking that you’ve gotten the best deal on the market only to be surprised with the bill at the end of the month.
This is the main reason why the Public Utility Commission of Texas recommended that all electricity companies should display the average price per kilowatt-hour in three categories, i.e. 2000 kWh, 1000kWh and 500Kwh. This levels the ground and ensures that you are comparing bananas to bananas.
So, how do you choose the cheapest prepaid electricity plan?
Know your consumption rate:
The first and most important thing that you need to know before choosing an electricity plan is 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: This is another crucial thing that you need to be aware of (interestingly, most electricity consumers are not aware of this). 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 and then find out whether there is a company with an electricity plan that offers better terms than what you are currently on. You should also find out how long your contract is.
While at it, you can also find out whether the plan is a variable or fixed.
Choose between a fixed and variable plan
Additionally, you need to know the nature of the contract or plan you want to get into, i.e. establish 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. Electricity provides two areas and offering the same prepaid plans might have different prices for the two areas. So you must conduct your research using the area zip code to find the correct price.
Carefully read the contract
Finding the cheapest electricity plan may seem overwhelming, but understanding your electricity needs helps you accurately compare prices per kWh. Make sure to consider other factors impacting 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.
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
Save now with prepaid electricity
Finding the cheapest electricity plan is not an easy thing. 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. Note that a slight difference in electricity can appear trivial on face value, but it is a lot when extrapolated over 12 months. For example, if a company charges a rate of $8 per kWh and another one 12 per kilowatt-hour, the customer who chooses the $8 per kWh, will save $100 every month.
Choose Payless Power, for affordable, reliable high-quality prepaid electricity services. Contact their customer care number for more information.