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A fixed-rate electricity plan is a kind of agreement that allows you, as the consumer, to be charged a constant rate throughout the contract period. For instance, if you were to enroll in a one-year electricity plan at a fixed rate of 11 cents per kilowatt-hour, it means that you’ll be paying a rate of 11 cents every month for every kWh for 12 months. Therefore, if you were to use 1000kWh in a particular month, you will be required to pay $110 that month.
The fixed-rate enables you to avoid the energy market spikes that energy consumers usually experienced during the energy peak periods when energy demand is higher than the supply. With this plan, you can easily budget for your electricity expenses since, assuming your energy consumption rates remain constant throughout the contract period, your electricity bills will also remain constant. It applies the same principles as is with a fixed mortgage, where the client is protected from the changes in the bank’s base rates, unlike when you have a variable mortgage.
A fixed-rate can give you value compared to a variable rate; that is, if you select the right plan. Note that not all fixed rates are lower than the variable rates, and therefore you will need to do a bit of research to identify one that has a fair rate. Most 12 month fixed rates are reasonably priced than variable rates. However, it can be slightly expensive if you need it fixed for two or more years. There are both Fixed prepaid and postpaid electricity plans, and they both apply the same principle as explained above.
Here in Texas, several companies offer fixed-rate electricity plans, but the charges vary from one supplier to another. Some offer fixed prepaid electricity plans like Payless Power, while others provide postpaid or both. However, as electricity consumers, the essential thing that drives most of us is the price. This then brings me to one of the frequently asked questions; Which electricity company offers the cheapest electricity rates in Texas?
The deregulation of electricity in Texas saw the emergence of several Retail Energy Providers (REP), each seeking to gain a share of the electricity market. Each of these providers has a unique electricity package or plan with different prices that they offer to their customers. Some of these REPs supply electricity to a specific zip code; for example, some REPs supply electricity to only one zip code, e.g., Houston, while there are some that supply electricity to multiple zip codes.
Determining the electricity company that offers the cheapest electricity rates in Texas is a bit challenging because the rates change from time to time, and the company that provides the most affordable rate today might not be the one with the best offer tomorrow. But when it comes to prepaid electricity, Payless Power has been the most consistent in offering the cheapest prepaid electricity rates in Texas. Located in Dallas-Fort Worth, Texas, Payless Power is an electricity provider that supplies prepaid electricity to the residents of Texas. Its’ service areas include; Houston, Fort Worth, Dallas, Abilene, DFW Metroplex, San Angelo, Corpus Christi, Galveston, Killeen, Laredo, Tyler, among other cities. It has been in the energy industry for over 15 years, which makes it well versed with the electricity needs and challenges facing the residents of Texas.
In addition to being one of the cheapest electricity companies in Texas, Payless Power gives its customers the option of paying their electricity bill at the end or beginning of the month. The rates offered by Payless Power are considered by many consumers to be flexible and moderately priced as compared to other electricity companies operating in Texas.
Apart from its reasonably priced month to month prepaid plan (SmarTricity Easy Choice), It also has one of the most affordable 12 months fixed prepaid electricity plan referred to as ‘SmarTricity Premier 12 plan’. The SmarTricity Premier 12 plan is a 12 months fixed plan with a minimum activation fee of $75. It’s rate per 1000kWh varies from city to city but ranges between 14 to 14.8 cents per kilowatt-hour. It also has a cancellation fee of $40.
Every electricity consumer in Texas has the right to choose his or her preferred electricity provider. But the question here is, are you paying the right rate? Are you getting value for your money? These are critical questions that every serious electricity consumer should ask themselves before subscribing to any electricity plan.
The first thing that you need to know is that rates vary from place to place, provider to another, and season to season. So, if you just moved to a new city or town, you need to find out the average electricity rate in that area. Secondly, you also need to understand the factors that influence electricity rates in that area as well as what makes an electricity rate a good rate.
For example, commercial rates and residential rates are different. Residential rates are usually higher compared to commercial rates. Other factors that have an impact on whether or not an electricity rate is considered good include; weather, regulations and policies, location, fuel cost, and transmission, and distribution.
Energy deregulation, for example, has a major impact on electricity rates. The deregulated markets have moderately priced electricity prices compared to areas where electricity has not been deregulated. You see, deregulation delinks the supply aspects of electricity from utilities, and in so doing, it creates an opportunity for other suppliers to try their luck. Consequently, this leads to increased competition among supplies, which then contributes to a drop in electricity rates since the supplier with the lowest rate attracts the highest number of clients.
This is exactly the case in Texas, where energy deregulation has given Texans power to choose energy providers. If you are in Texas and you are searching for a good electric provider, you first need to be certain whether the area you are living in is deregulated or not. There are numerous cities and towns in Texas whose energy is deregulated. To determine a good electricity rate in these areas, you will have to compare multiple residential rates.
Another important thing to understand is that energy rates don’t usually tell the whole truth, since, apart from the unit price, there are also other charges that contribute to the overall energy price. This might include charges such as installation fees, utility fees, among others.
Electricity prices are never static – they change from time to time and season to season. And choosing the perfect time to renew your electricity plans can save you hundreds of dollars. Additionally, knowing when to move or switch electricity plans will enable you to plan well in advance so as to avoid paying cancellation fees or penalties. So, when is the best month to renew your electricity rate?
Electricity rates, just like any other commodity, follow the principles of supply and demand. When the supply is higher than the demand, the prices drop, whereas, when the demand is high and the supply is low, the prices go-up.
During the winter and summer periods, energy usage is at its peak as people tend to stay indoors to avoid the intense weather, and therefore residential electricity consumption rates increase. This is the period where people make use of air conditioners to try and regulate the hot or cold temperatures. The use of other household electrical appliances such as TVs and electric cookers is also at its peak.
On the other, electricity demands during the fall and spring season are relatively low, as electricity usage drops. This is the period where you can get good electricity prices. So, the best month to renew your electricity rate is typically between late-December to mid-March. The period between October to late November is where electricity rates are at their all-time high. So, avoid renewing or switching your electricity plans during this period.
Even though your current electricity contract or plan may not be ending during the December -March period, it is still important to bear this in mind so that you can make the necessary arrangement and readjust your renewal date to fall around this period.
If it happens that your current electricity plan is coming to an end, and you happen to find a plan that offers a lower rate than what you are currently on, it is only wise to switch to that plan irrespective of the time of the year.
What is construed as the best electricity plan depends on so many factors such as usage or consumption rates, type of plan, enrollment requirements, among other factors. Also, what might be a good plan in a certain zip code might not necessarily be the best in another.
Note that most of the REPs in Texas only serve a few areas within the deregulated part of the state. Most serve Houston, Dallas, and part of Corpus Christi. This means that the rates are highly likely to differ from city to city even if the supplier is the same.
One thing that is constant, though, is the fact that the majority of the electricity plans in Texas are computed based on your electricity consumption rate per month. Therefore, for you to identify the best electricity plan, you first need to know your past electricity usage (historical usage). If, for instance, your past usage is roughly around 1400kWh per month, the best plan for you would be the one that offers a minimum consumption rate of 2000 kilowatt-hour.
To establish your past electricity consumption rates, you will have to check your old electricity bills. This will give you a clear picture of how much energy you consume every month. Check your past electricity usage for the whole year. This is particularly important because your energy consumption is likely to be higher during the summer and winter months.
Another thing that you also need to consider when looking for the best electricity plan is the type of electricity plan you want. As you may already know, electricity plans are categorized into two, i.e., Postpaid and prepaid electricity plans. These plans can either be fixed or variable.
So, in a nutshell, the best electricity plan is the one that offers the best rate, has limited requirements, and meets most of your needs. It should also offer different payment options and should be flexible enough to meet the ever-changing consumer needs. When it comes to prepaid electricity plans, the one that meets all the requirements mentioned above is the Payless Power’s 12-months fixed prepaid plan.
If you are looking for the best fixed prepaid electricity plans in Texas, you need to check out Payless Power SmarTricity 12 Premier plan. It offers one of the best electricity rates in Texas in addition to being reliable and flexible. It has no hidden charges, no deposit or credit check required. It is basically a simple and straightforward plan that has been well-thought off and captures almost all customer needs. You no longer have to worry about electricity price spikes during the winter and summer periods. For the postpaid electricity plan, the best plan is the one that has no surprise charges and has moderately priced electricity rates.
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