Who provides Houston electricity without base charges?
Some electricity companies charge you simply for being their customer. Seems crazy, right? Well, it’s actually very common. These fees are usually called base charges or customer charges, but each electricity company can have its own term and amount they charge you.
You incur this fee just for the opportunity to use that company’s electricity. Even if you never flick on a light switch, you have to pay the fee. Some companies waive the fee after you use a specified amount of electricity, but you can be sure, even the best electric company in Houston makes its money.
Because these base charges sometime go away under particular circumstances, it can be difficult to sift through all the fine print for each electricity plan. Some companies do not assess a base charge, but others may trick you with smooth advertising copy. Here at Texas Electricity Ratings, we’ve combed through the legalese to bring you the Houston electricity plans that have no base charges.
Pay only for the electricity you use in CenterPoint Houston
Right now, two Houston electricity companies offer a total of three plans without base charges:
- 12 Month Usage Bill Credit from StarTex Power
- Tara Web 24 from Tara Energy
- Tara Web 12 from Tara Energy
The Tara Web 12 and 12 Month Usage Bill Credit have year-long contracts, and the Tara Web 24 has a two-year contract. While these three plans have some significant differences, all three offer electricity with no base charges.
How much electricity will you use?
Knowing how much electricity you normally use is critical in picking the right electricity plan for your household (especially given what’s predicted for this coming summer’s record Texas electricity demand). It’s no different for when you want to avoid base charges.
The Tara Energy plans have a consistent price no matter your usage. The 24-month plan is 11.1 cents per kWh. The 12-month plan is 11.6 cents per kWh. The longer you commit, the better your price.
The StarTex Power plan, on the other hand, has different average prices at different usages. At 500 kWh, the average per kWh price is 13.5 cents. At 1,000 kWh, the price drops to 9.5 cents. At 2,000 kWh, the rate climbs a bit to 10.2 cents.
If you’re picking purely on price, you now have the information you need. Low usage customers are more likely to pick the one of the Tara Energy plans, but average and high usage customers will tend toward StarTex Power. That said, price isn’t everything.
Big difference in early termination fees
The best Houston electricity companies sign up a customer for a fixed rate plan because the company wants the customer to complete the full contract term. The customer can leave before the contract expires, however, there is almost always a early termination fee.
Between the two companies that offer no base charge plans, there is a sizable difference in their early termination fees. The StarTex Power plan has a low $50 early termination fee. Both the Tara Energy plans have a $175 early termination fee, which is currenlty about the market-average.
Compare Houston electricity prices
The innovative tools at Texas Electricity Ratings exist to help you get the best electricity plan for your needs. Armed with the right information, you can make an informed choice for your next electricity plan. Read electricity company reviews and compare electricity plans through Texas Electricity Ratings to make yourself a more educated consumer.