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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.

Who is the cheapest electricity provider in Texas?

The Texas energy market has hundreds of electric companies, each offering unique electricity plans and prices. Companies offer a variety of ways to capture customers’ attention, but top retail electric providers have affordable options, reliable electricity, and quality customer service.

To find the cheapest electricity rates in Texas, different plans offer varying benefits, such as prepaid or postpaid electricity and fixed or variable rate plans. Payless Power consistently offers some of the most affordable prepaid electricity plans in Texas. Our Premier 12 plan is a fixed-rate 12-month plan guarantees a set rate for the duration of the contract. Our Easy Choice plan offers variable rates each month, ideal for those needing a flexible plan if they’re moving or shopping for the best fixed-rate plan. Simply enter your zip code and compare our rates to other providers. Our simple plans with transparent pricing mean savings for our customers.

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, look at past bills to discover your monthly electricity consumption. Then, compare plans online and determine if a prepaid plan is best for your household. Start saving money right away with no deposit and a minimal connection fee that goes toward the cost of electricity with Payless Power’s prepaid electricity plans.

What our customers are saying

See why our power customers say we're the best electricity provider in Texas!

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

Happy Customer

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.

Kalandra H. in McKinney