How to Avoid Frightening Energy Bills
Texans have the power to choose the cheapest energy rates from the best electricity companies. Sadly, a lot of Oncor customers pay more for electricity than they should. That’s because they make these 7 scary mistakes in choosing an electric provider. Here’s what you need to avoid.
1 Not Reading the EFL
This is an absolute “No-No”. The EFL has all of the fine print that covers the details of the plan, from base charges to early termination fees. The biggest mistake you can make is to simply go for the lowest average rate.
In Texas, average usage rate is usually at 1000 kWh of use per billing cycle. Sometimes, electricity providers create plans with incentives that drop the electric rates intentionally at 1000 kWh of use. So, once you hit 1000 kWh of use, you get a bonus. Come up short or go over and the rate goes back up. This misleading practice can leave you paying a lot more than you expected on your monthly electricity bills. So always look over your EFL before switching to a new plan.
2 Rushing to Choose a New Plan
Rates are typically the cheapest around the shoulder months during spring and fall. Demand is down and so prices tend to fall. Usually, this is a good time to lock in low rates.
If your contract ends during these times, then lock in low rates for the long term. However, if you have a plan that ends in the summer or winter, you might end up stuck trying to find a cheap electricity plan while rates are high.
In these situations, it’s best to shop around, compare electricity providers. Don’t rush into a new contract! The key to saving on your monthly energy bills is to find a cheap, short-term electricity plan or variable-rate plan. These can help you get closer to the shoulder months where rates are cheaper.
3 Ignoring Electric Provider Customer Reviews
Customer reviews provide insights into the quality of service an energy company provides. While some plans may have cheaper rates, it matters little if you’re stuck trying to get a hold of customer support. This is why we rate providers. It helps make it easier for you to find the best electricity companies in Texas.
4 Picking a Plan That Doesn’t Fit Your Needs
Free electricity plans are a prime example of electric plans that can go either way. Free electricity is great. But nothing is truly “free”.
These plans have periods of time where there is no charge for electricity. And they offset these periods of time with above-average rates. If you use more electricity during the paid periods than the free periods, you’re going to end up paying more than you should.
5 Choosing Plans with Ineligible Rewards
Many providers offer loads of perks when signing up. Gift cards, tickets to events, energy-efficient lights, and HVAC coverage are just a few examples. However, not all rewards fit everyone. Always read the fine print. And when in doubt, ask if you qualify before agreeing to the contract.
6 Ignoring the Early Termination Fee
While you may be excited by a new plan with cheaper rates, switching before your contract ends might not be the best idea. Early termination fees vary from $20 per month remaining in the contract to over $250.
Always compare the early termination fee vs. the potential savings you’d get over the life of your new contract. If you stand to keep more money in your wallet after you switch to a new electric company, go for it. If not, you’re better off waiting until the contract ends.
7 Switching Electricity Plans without Comparing Plans
There are a LOT of electricity plans in Texas. After all, who has time to sift through each electric provider website and review each plan in detail. Sorting through them all and finding the cheapest ones isn’t easy. It can be confusing and terrifying…
That’s why you should visit https://www.texaselectricityratings.com.
We have the tools, tips, and strategies you need to switch to the best electric provider in Texas. Check out our bill calculator. Analyze electricity plans. And sort through dozens of energy plans to find the perfect fit for your home.