Short-term electricity plans explained

Short-term electricity plans last less than one year, offering customers more flexibility than traditional energy contracts. Most deregulated energy plans have contracts of one to three years, which might not be a great fit for every shopper. Learn how to make the most of your electricity options on Choose Texas Power and leverage our short-term power plans.

Our top short-term electricity plans

Explore our energy experts’ favorite short-term plans to determine if your household could benefit.

6-Month Prepaid from Payless Power

This prepaid energy plan from Payless Power allows customers to skip the deposit and credit check. A prepaid energy plan lets you preload your electric account with funds and replenish when you run low. For customers on a tight budget, this could be a good option to keep a close eye on energy costs.

SimpleSaver 11 from APG&E

APG&E offers this 11-month plan option for customers who want to benefit from a fixed rate but need a term shorter than one year. The plan also features a $100 monthly bill credit whenever you surpass 1,000 kilowatt-hours (kWh) of usage. You’ll pay an early termination fee (ETF) of $150 for cancelling this plan early, so ensure it works with your timeline before signing up.

Flex Rewards from TXU Energy

If you want a month-to-month electricity plan, the Flex Rewards plan from TXU Energy is our top choice. Enjoy a power plan with no contract or cancellation fee, giving you maximum flexibility to switch plans whenever you want. This plan also offers a 3% cash-back loyalty reward, which can be used towards your bill.

Who should sign up for a short-term energy plan?

A short-term energy plan can come in handy in a few different scenarios. Consider signing up for a short-term plan if you find yourself in one of the following situations:

1. You are moving soon and need a quick solution. If you have a move coming up but need electricity for a few months beforehand, a month-to-month energy plan could be just what you need in the interim.
2. Electricity prices are spiking. If you’re shopping for energy during peak seasons, like summer or winter in Texas, energy rates could be very high. A short-term energy plan could be a great opportunity to wait out peak pricing and switch plans once prices drop.
3. You want to avoid an upfront deposit. Some short-term energy plans, like no-deposit plans, allow you to skip the upfront deposit. If you want to avoid paying another fee, take advantage of a short contract with a prepaid component.

Short-term energy plan drawbacks

Short-term energy contracts are a great solution for certain customers and scenarios. However, they do come with a few drawbacks. Be aware of these cons before selecting a short-term plan.

• Less protection from market fluctuations. Short-term contracts offer less protection from changes in the energy market. Month-to-month energy plans can be risky because they have variable rates, meaning your energy rate shifts with the market. In summer and winter, this could lead to high electricity rates when demand and prices spike.
• Higher electricity rates. Short-term energy plans tend to have higher energy rates than longer contracts. If price is your number one priority, a traditional fixed-rate contract is probably a better fit.
• Fewer opportunities to save. Longer contracts typically offer more unique opportunities to save, such as bill credit plans, solar buyback plans, or free usage periods. Short-term plans may offer fewer incentives since you are not locked into a long contract.

While short-term plans have drawbacks, our experts still believe they can be a good fit depending on your situation. If you have more questions about short-term contracts, call our specialists at the number on your screen.