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Blog Sep 23, 2020

What is the cheapest electricity company in Texas?

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Did you know that Texas is the largest state in the U.S. after Alaska, both in terms of population and size? Well, Texas occupies a total land area of about 261,232 square miles and an estimated population of around 29 million.  It is one of the fastest-developing states in the country. It is the high population coupled with numerous construction and agricultural industries that has contributed to its high energy demands. In fact, according to the Energy Information Administration, on average, Texans consume the 5th most energy per capita in the country after Iowa, North Dakota, Louisiana, Alaska, and Wyoming.

Texas, unlike most states, has its own alternating current power grid known as the Texas interconnect. It is also one of the states with a deregulated electric service, giving its residents and businesses the freedom to choose their electricity provider. It is the deregulation of the Texas electricity market that brought about the emergence of several Retail Energy Providers (REPs) and, with it, hundreds of electricity plans.

The deregulation is a good thing in that the competition among energy providers has brought about a semblance of stability in electricity prices. However, there is still some fluctuation in prices as a result of changing market dynamics. It has also contributed to the introduction of some reasonably priced electricity plans. Another interesting bit about Texas is the fact that it generates and consumes more energy than any other state. Moreover, it is a leader in renewable energy production and commercialization.  It has the highest wind power generating capacity in the country with over 2000 wind turbines.

All these factors, i.e., high population, high energy demands, energy deregulation, alternative sources of energy, and increased competition among REPs, in one way or another, affect the electricity rates and prices in the state.

So, what is the cheapest electricity provider in Texas?

As stated earlier, there are hundreds of electric companies in the Texas energy market, each offering its unique electricity plans and prices. Each of these electricity companies are seeking to get a share from the Texas energy market. Therefore every company strives to offer the best it can to ensure it is among the top companies in the market both in terms of affordability and quality of service. 

In regards to which electricity provider offers the cheapest rates in Texas, it depends on the type of plan you want, i.e., prepaid, postpaid (contract), fixed, or variable electricity plan.  According to choose power, Payless Power, with its’ SmarTricity Premier 12 plan is the cheapest prepaid electricity company in Texas with an average rate of $0.141 per kilowatt-hour for every 1000kWh of energy usage and $0.133 per kilowatt-hour for the 2000 kWh range. The SmarTricity Premier 12 plan is a 12-month fixed-rate electricity plan meaning that the rates offered during registration will remain constant for the 12 months you signed for, regardless of the market dynamics.

In Houston, Dallas, and Corpus Christi, for the 2000 Kwh usage, the SmarTricity Premier 12 plan is priced at $0.134, $0.129, and $0.139 per kWh, respectively. As for the 1000 kWh usage level, the three cities Houston, Dallas, and Corpus Christi, has rates of $0.145, $0.141, and $0.148 per kWh. These three cities are just a sample to give you the picture of the SmarTricity premier 12 plan rates across cities in Texas.

Other companies that offer competitive prices include; Gexa Energy with Gexa Saver Deluxe 12 ($0.057/kWh), Frontier Utilities with their Best Value 12 ($0.057/kWh), and Express energy with its Flash 12 ($0.065/kWh) electricity plan. These three companies offer a postpaid contract plan, which is different from Payless power’s prepaid plan, and that is why it is essential to know what type of electricity plan you want. Also, note that the electricity rates are not constant – they change almost every day, and therefore, the price quoted today might not be the same tomorrow.

What is the average price per kWh in Texas?

The average Residential price per KWh in Texas stands at $0.119 per kilowatt-hour, and the average electricity usage per month is roughly around 1171kWh which means, the average amount spent on electricity by a Texan is approximately $139.35, which translates to $1,672.20 per annum. This electricity rate is slightly lower than the country’s average residential rate of $0.133.

You might be wondering why the fluctuation in electricity rates. Why are they not constant?  Well, the truth is that electricity rates are influenced by many factors such as; time of the year, your location, and market disruptions or changes. Regardless of whether you are in the deregulated or regulated market, your electricity rate should be indicated in your electricity bills and contract. Electricity price per kWh is one of those essential things that you need to know before settling on an electricity plan.

Moreover, when selecting an electricity provider, you first need to compare the prices of electricity companies within the same category. For example, if you are interested in prepaid electricity, it is advisable first to compare all the electricity companies that offer this kind of service. If, on the other hand, you are looking for a fixed rate, then compare electricity companies that offer fixed-rate electricity plans in Texas.

A good electricity company is one whose electricity rates are within the state’s average rate. Any electricity rate that is significantly higher than the state’s average electricity rate is an expensive one and should be avoided.

What is the best electricity provider in Texas?

The best electricity provider is the one that has good customer service and offers affordable and reliable energy.   Quality service and customer satisfaction should be among the main objectives of the company. Other factors that make an electricity company stand out from its competitors include; environmental awareness, innovative solutions to challenges, variety of services, and engagement in corporate social responsibility.

In Texas, there are several outstanding electricity providers, but the one that clearly stands out, particularly when it comes to prepaid electricity service, is Payless Power.  The one thing that makes Payless power exceptional is the way it employs technology, creative thinking, and innovation to achieve its goal of providing flexible, affordable, and reliable prepaid electricity. It’s customer care service is second to none. It has an excellent bilingual customer care team that has been professionally trained to handle all customer complaints. The company has also put in place measures to ensure timely response to issues. For example, they have a responsive online portal that is available 24/7.

Another impressive thing about Payless Power is that they offer their customers the ability to track their energy usage through the account tracking tools. With Payless Power, you can easily access your account through your mobile phone or a computer.

Through their elaborately designed prepaid electricity plans, you can easily save a lot of money every year (you can save as much as 20% off your electricity bill). It also relieves you from the stresses of shocking bills, high deposits, and credit check requirements that are usually experienced with some electricity providers. The fact that the company has been in the energy market for over 14 years and reaching over 400 communities is clear proof that they are the best in what they do.

When it comes to variety and electricity plan diversification, Payless power has two popular prepaid electricity plans. These are the variable month to month prepaid plan and the fixed 12 months prepaid plans. It also offers the flex pay plan that makes it possible for you to make payment at your own convenient time.  When it comes to electricity connection, Payless Power offers same-day connection. All you need to register and pay the minimum activation fee of $75 for the fixed prepaid electricity plan and $49 for the month to month plan.

So, in a nutshell, the best prepaid electricity company in Texas is Payless Power because of these five things; good customer service, competitive electricity rates, diverse electricity plans, straightforward requirements for enrollment, and same-day electricity connection.

Here are tips on how to get the cheapest electricity in Texas

  1. Prepaid or pay as you go electricity plans

Most of the cheapest electricity suppliers are the ones that offer prepaid electricity. Prepaid plans are less expensive compared to the long term electricity plans. If you are looking to be economical with your electricity expenses, then you should seriously think about switching to prepaid. There is a myth that prepaid electricity plans are too expensive than the traditional postpaid electricity plans. Nothing could be further from the truth. You see, with prepay, you don’t pay any deposit and hence make the bill cheaper.

Payless Power has made it cheaper by introducing a fixed rate, and therefore, you no longer have to worry about fluctuation in energy prices. Come winter, come summer – the electricity rates remain the same. It is on you to determine how much energy you are going to consume. In short, you have absolute control over your bills.

Payless has also made it easy to purchase prepaid electricity by making it possible for you to pay online or by using your phone or through your local MoneyGram location. You also get to receive daily notification on your energy usage, account balance, and due dates. Prepaid is without any iota of doubt the easiest way of getting cheap electricity in Texas, particularly for customers with a low credit score.

2. Look out for cheap fixed-rate electricity plans

There are many electricity plans with reasonable electricity rates. These are plans with 2 to 3 year contracts that have consumer needs in mind.  Fixed rates remain constant and are not influenced by the changing market dynamics, which means you are covered from the price fluctuation that usually characterizes the Texas energy market. This is an ideal plan for anyone who wants to shift to a cheaper plan and minimize the amount spent on utilities.


To find the cheapest electricity rate, you will first have to know your consumption rate, the type of plan that you want and for how long you would want the plan to run. Prepaid plans are the cheapest as it doesn’t require a deposit and you can choose what you would want to spend. If you are looking for an electricity company in Texas that offers the best deals as far as prepaid electricity is concerned, then you should check out Payless Power. It has both month to month (SmarTricity Easy choice) prepaid plan and a fixed 12 months plan (SmarTricity 12 Premier plan).

The SmarTricity Premier 12 plan has an average rate of $0.141 per kWh for electricity consumption rates  under 1000 kWh and $0.133 for consumption level of 2000 kWh. The Easy choice plan on the other hand, offers an average rate of $0.152 per kWh for usage level under 1000kWh and $0.146 for usage level of 2000 kWh.  This is just an average rate, but the rates vary from city to city although the differences are marginal.

As for traditional postpaid electricity plan, the cheapest electricity providers in Texas are Frontier Utilities (Best Value 12), Gexa Energy (Gexa Saver Deluxe 12), and Express Energy (Flash 12) with a rate of $0.057 per Kwh, $0.057 per Kwh and 0.065 per kilowatt-hour respectively. Note that these rates change every single day and therefore it is advisable that you compare them before you settle on one.

It is also important to understand that, apart from the electricity rate , there are other components that make up the total electricity bill and this include; base charge , delivery charge and credit for billing cycle for consumption rate above 2000 kWh. For Payless Power,  the average charge per kilowatt-hour include; daily charge, energy charge and delivery charges.

When it comes to determining the best electricity providers in Texa, some of the things that you should consider are the price (whether it is within the average rate), customer care/support, ease of doing business, financial strength and whether it has any hidden charges. If you are specifically looking for a pay as you go electricity plan, then Payless Power is the best option for you.

Remember that, there is always the possibility that once you have selected the electricity plan of your choice, the next day, another company might come up with a lower rate or price. It is similar to when you buy a phone and then come back after a while to find  that the same phone is being sold at half the price you bought it at. The bottom line here is that you can never really predict what will happen tomorrow and therefore all you can do is compare the deals being offered and select the one that fits with your budget. You can also choose plans with shorter duration or one with no cancellation fees.

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Affordable and easy to make payments

I was worried about getting electricity for my home through a prepaid company. I was calling around to see different rates then going through all the hassle of credit checks while dropping points each…

Christine M. in Killeen

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I have been with this company for several years and have been very happy since. Even when I moved, they made my usually stressful situation very easy and carefree. I recommend them to everyone that I…

Julia L. in Webster

Long term customer

I have enjoyed the service for 2 years now. In the beginning this service was planned to be temporary but with the service being so effective for me i decided to keep it for the long haul. I’m a happy customer.

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