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Commercial Electricity Rates Houston

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All businesses within Texas’ deregulated energy market have the right to choose their energy providers and energy plans.

The main objective of energy deregulation was to create a competitive energy market where the power to choose shifts from the energy suppliers to the consumers. This has forced the Retail Energy Providers (REPs) in Houston to adopt more effective and efficient methods that benefit the consumer. They’ve also revised their rates to be more competitive and improved on their customer service. All these adjustments and the disruption of the status quo were done to improve the performance of the energy market in Houston.

Today, commercial businesses and corporations can compare electricity rates and choose the energy plan that best meets their business goals. According to an energy sales and consumption data analysis report touching on commercial electricity usage, businesses can successfully minimize their monthly electricity consumption by actively shopping for the right suppliers and changing energy providers every one to two years.

Who has the cheapest electricity rate in Houston?

If you have a business in Houston or you are planning to start one in the area, one of the things you might be looking for is a cheap or fairly priced commercial electricity rate. The good news is that you have several options to choose from, but the not so good news is that there are over 100 electricity plans from around 20 electricity providers to select from. This makes the process of identifying the best business electricity rate a bit challenging. This is even made worse by the numerous promotions and offers as well as the complicated legal fine prints that contain the terms and conditions of service.

But then again, how do you identify the cheapest business electricity plan in Houston?

Well, to find the cheapest business electricity plan, you need to first ask yourself, what are your business electricity needs? And what type of electricity plan will best meet those needs? What are your business energy consumption rates? For instance, if your average business electricity bill ranges between $300 and $2,500 a month then you can easily get the ideal business electricity rate through an online comparison of electric rates.

However, if your business requires higher energy consumption rates, causing you to spend more than $2,500 a month, then the best means through which you can find a competitive price is through the custom energy quote method. The custom energy method involves you providing details about your company or business. These details include information such as; the type of business, your business energy usage rate, as well as providing your recent electric bill. There are quite a number of digital energy marketers who can help you through all this process including leveraging suppliers on your behalf, to help you get the best electricity rate for your business.

So, what are the cheapest business electricity rates in Houston?

Houston’s average business energy rate is reported to be 7.78 cents per kilowatt-hour, which is approximately 28 percent lower than the country’s average. The cheapest business rate for a 6 month electricity plan is priced at 4.44 cents per kWh while for an 18 month energy plan, the cheapest rate is set at 5.25 cents per kWh. For a 36 month electricity plan, the cheapest rate is 5.02 cents per kWh. These rates are based on a 500,000 kWh or more electricity consumption per year.

Who has the cheapest electricity rates in Texas?

The average energy rate in Texas currently stands at 7.9 cents per kWh which is significantly lower (24%) than the country’s average. This significant difference is to a larger extent attributed to the energy deregulation in most parts of Texas, which brought about the emergence of many energy providers with competitive energy rates. Energy rates are dynamic in the sense they are influenced by the market forces especially on the matter of supply and demand.

Additionally, electricity rates vary depending on the type of plan and the electric company supplying the electricity. As mentioned earlier, the best way to find the right energy plan for a small business is through online comparison but for large businesses such as industries and corporations, the ideal way is through quotations. For business owners, electricity deregulation in Texas has given them the opportunity to choose an electricity plan with an electric rate that suits their needs and offers a price that is within their budget range.

Cheapest commercial electricity rates in Texas

There are several websites that you can use to compare commercial electricity rates in Texas. All you need to do is enter your zip code in the ‘zip code search section’ and you’ll be provided with a list of energy companies and energy plans within your location. You can then compare the prices based on the type of plan and the duration you want.

Currently, the cheapest Texas electricity rate today for a 6 months electricity plan is 3.16 cents per kWh. For the 12 months, 24 months, and 36 months, the rate is 3.89 cents per kWh, 3.74 cents per kWh, and 3.59 cents per kWh respectively.

How do business electric rates work?

Business electric rates contain three main costs i.e., Wholesale, delivery, and supply.

Wholesale cost: This is the cost of setting up an electricity plant, wires, and poles used in the transmission and distribution of electricity to the consumer. In short, it comprises the total operation cost that is the cost for operation, repairs, and maintenance.

Supply: The supply cost is the commercial cost involved in generating electricity. It also includes the cost of distributing electricity through to installed wires to the consumer.

Delivery cost: This is the cost of local distribution and customer service to a small business in Texas.

Each of the above costs are clearly stipulated in your monthly electricity bill, and are aggregated in addition to the profit and taxes to make up the final electric bill.

What is a good business rate per kWh?

A good business rate depends on many factors including; the type of electricity plan, usage level, and its difference from the average rate.

There are two main types of electricity plans, fixed-rate and variable electricity plans. The rates for these types of electricity plans are different, and therefore you’ll have to consider these two types when comparing plans. The rates are also calculated based on the usage level and there are three categories that are 500 kWh, 1000 kWh, and 2000 kWh. Regarding the difference from the average rate, a good business electric rate shouldn’t be too high from the average rate. If the difference is significantly higher than the average rate, then it is considered expensive.

How much is the average electric bill in Houston?

Houston is one of those cities with high humidity and summer temperatures. Therefore, people in Texas use a lot of electricity to cool their homes especially during the summer period. We, therefore, consume a high amount of energy annually – higher than the country’s average. According to the Electric Reliability Council of Texas (ERCOT), an average Houston home consumes an estimated 15,600 kWh annually, which translates to around 1300 kWh per month.

Since the average electric rate in Houston is 11.74 cents per kilowatt-hour, the average residential bill in Houston is $152.62 per month. This average electricity bill applies to both multi-family homes or apartments as well as single-family homes. However, if you have a large home (covers an area more than 1952 square feet), your bill might be higher than the average bill.

For business electricity rates, the average bill depends on the size, type, and consumption rate of the business. Since it is a bit challenging to calculate the average business electricity consumption rates in Houston, its average business electricity bill is unknown. Moreover, most electricity providers offer exclusive rates that are not found online.

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