Average electricity rates in Texas
The most recent average residential energy rate in Texas is 14.51 cents per kWh, 13% lower than the national average of 16.62 cents per kWh. The latest commercial electricity rate in Texas is 9.22 cents per kWh. These rates are according to recent data from the Energy Information Administration (EIA).
Texas Electricity Providers
Texas electricity customers can choose from several energy providers to secure an affordable rate. Before choosing a provider, consider several of the following major factors.
Plan Types
When shopping for energy providers and plans, it’s helpful to understand the different plan types available. Our marketplace features fixed-rate, variable-rate, and prepaid plans in Texas. Choose the one that best fits your needs and budget.
- Fixed-rate: A fixed-rate plan offers a steady electricity rate for a set term length. This plan type provides price stability and protection against market fluctuations. You will likely pay an early termination fee (ETF) if you cancel a fixed-rate plan before the contract is up.
- Variable-rate: Your electricity rate on a variable-rate plan can change based on market conditions. Your bill may decrease during times of low demand but can rise during peak periods, such as the summer. These plans offer flexibility because you can cancel any time without paying a fee.
- Prepaid: A prepaid plan requires customers to pay for electricity in advance, allowing for greater control over usage and budgeting without the need for an upfront deposit.
Contract Terms
Review the contract length and any ETFs noted in the Electricity Facts Label (EFL). Make sure you understand the terms and conditions before signing up.
Usage Patterns
The best plan for you will align with your consumption habits. Review previous energy bills to understand your electricity usage patterns. Some plans offer free nights or weekends, which could be beneficial depending on when you use the most electricity. Our marketplace features reviews for popular providers such as TXU Energy, Direct Energy, and Reliant Energy to help you better understand their offerings and service ratings.
How to switch electricity providers in Texas
You might switch providers if you’re unsatisfied with your current plan, your contract is ending, or you’re moving outside of your current provider’s service area. You may incur an early termination fee (ETF) if your contract is not over. Read your plan’s Electricity Facts Label (EFL) to find the fee details. Many providers will waive the ETF if you are moving outside the service area.
Follow this simple step-by-step process to switch electric providers.
- Check your status. Ensure you live in a deregulated area and review your current provider and rate to make comparisons.
- Enter your ZIP code. Filter and compare available energy plans in Texas based on price, plan type, and terms to find providers in specific cities such as: Houston, Dallas, and other available cities.
- Pick a plan and sign up. Sign up on ChooseTexasPower.org or call the number on your screen to speak with an energy advisor.