When should you shop for electricity in Texas?
The best times to shop for a new energy plan in Texas are early spring and late fall. These seasons tend to have more affordable energy costs than other times of the year due to milder weather resulting in low demand. Our energy experts recommend locking in a low fixed rate during these seasons to protect yourself from market fluctuations when the cost of electricity rises.
When is the most expensive time to sign up for an energy plan?
The most expensive times to purchase electricity in Texas are summer and winter. Summer is particularly challenging for Texans due to extremely hot summers that drive up the cost of electricity. Electricity demand skyrockets as Texans rely on air conditioning to stay cool. Winter can also pose a similar problem, as Texas sometimes experiences unpredictable weather and freezing conditions.
How weather affects Texas’ energy costs
Texas weather can influence the cost of energy for residents. Texas is known for long, hot summers and variable winters. Extreme weather conditions often require residents to rely heavily on electricity. For example, most homes and businesses use their AC around the clock during the summer. On the other hand, low temperatures in winter force Texans to use more heating.
Increased electricity demand strains Texas’ power grid because utility companies must deliver more energy to homes and businesses. Higher electricity consumption often inflates electricity rates as utilities struggle to meet the demand. For this reason, energy experts recommend shopping for a new energy plan in early spring and late fall, when the weather is mild and prices are lower.
How to avoid paying too much for electricity
You can’t always plan out what time of year you buy an energy plan. If you must shop for energy during an expensive month, here are a few tips to help you manage the cost and get out of a pricey contract.
Consider a month-to-month plan
A month-to-month energy plan might have a high electricity rate during expensive months, but you can switch plans with no penalty once prices drop.
Search for plans with bill credits
Bill credits can be advantageous if they match your energy usage patterns. Bill credits discount your electricity bill when you fall into the correct usage tier, such as 1,000-1,999 kilowatt-hours (kWh). This plan could help you save if your monthly consumption is consistent and matches the requirements for a bill credit.
Opt for a plan with an unusual contract length
Search for plans with unusual contract lengths, such as eight, 14, or 18 months. That way, your contract will end during the low season. For example, if you sign up for an eight-month contract in August when prices are high, your contract will expire the following April, when prices tend to be lower. This option helps you get out of an unfavorable billing cycle.
Find a low early termination fee
Early termination fees vary depending on the provider and contract length. If you have to buy an energy plan during an expensive month, consider picking a plan with a low early termination fee. Once prices drop, it might be worth paying the penalty if you find a cheaper electricity rate.
Frequently asked questions
How much are early termination fees in Texas?
Early termination fees (ETF) vary by provider and contract length. They typically range from $100 to $300 or can be a fee for each month remaining on your contract. Check your Electricity Facts Label to learn what fees are included in your plan.
What are the cheapest electricity providers in Texas?
Gexa Energy, 4Change Energy, Express Energy, and Frontier Utilities regularly offer the lowest rates across Texas. However, keep in mind that rates change often and depend on location and season. Enter your ZIP code to find today’s cheapest energy providers.
