Finding the cheapest electricity plan in Houston requires two considerations

by Donny on November 13, 2010

Determining which electricity company has the cheapest plan requires two considerations:

  1. Knowing if the plan is variable or fixed
  2. Understanding if the electric rate plan has hidden fees

Most Houston electric companies will have both a variable rate plan and a fixed rate plan.

Houston electricity providers that are new to the market will usually start out selling a variable rate plan because it doesn’t require as much upfront capital.

What you can take away from this is that a variable rate plan puts all the risk in the electric service customers hands.

If you are concerned about your electricity price each month you really should avoid variable rates at all cost.

A variable rate is not for the tight budget and especially if you are one to examine your electric bill every month like it is a do or die stock you have bought on the stock market.

The positive aspect to a variable price is that you are usually not contracted to stay with the Houston electricity company for any set period of time.

Variable prices many times can trick you into thinking a certain Houston electricity company has the cheapest electricity prices when in reality it is a teaser price the first month before it goes up on you.

So again don’t be fooled by a low price on a variable rate as it will likely go up on you in short order.

Another consideration we mentioned above has to do with hidden fees. Some Houston electricity suppliers will hide certain fees from the glossy ads you see on TV, hear on radio, and read in the paper.

When you call the sales person on the phone they quickly throw in nonchalantly that TDSP charges will also be added to the rate.

Most Houston energy consumers have no idea what TDSP even stands for but when you get your first months bill and notice your rate is 3 cents per kwh higher than you thought it was you start to pay attention.

You will likely go out and research how you got tricked into something like this and discover TDSP stands for Transmission Distribution Service Provider Charges.

Most Houston electric providers will bundle these into their advertised rates and plans but unfortunately many do not in certain ads they use to snooker unsuspecting customers.

So keep up an eye out for tricks and gimmicks like these when shopping as a Houston electricity service consumer.

Our comparison chart is good for the purpose of comparing and shopping electricity companies in Houston. We have bundled in all fees and charges into the rate excluding taxes.

Just type in your zip code in our tool and click on “Compare”. You can then order electric service in Houston online or just learn more.

If you would like to speak with a Houston energy consultant directly please call 1-800-971-4020

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