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Energy price trends from our marketplace data revealed which months are the most and least expensive to buy electricity in Texas. This data from the past three years documents the average purchase price of electricity, including utility delivery fees. Based on this analysis, October and April are the best months to shop for cheap energy. Use this data to inform your shopping decisions and learn which months may be best for affordable rates.
Extreme weather in Texas exposes vulnerabilities in the power grid. Both winter and summer in Texas can bring severe weather patterns, such as hurricanes, snowstorms, tornadoes, flash floods, and more. These storms often cause damage to electrical lines, challenging the power grid and increasing energy costs. Consider how the combination of these two factors drives up the cost of electricity:
Winter Storm Uri in 2021 is an unfortunate example of how Texans have experienced some of the highest electricity rates during the winter. When the storm hit, a cold snap shut down the power grid and left millions without power in below-freezing temperatures. Texas’ aging infrastructure was not weatherized properly to operate during the cold storm. As a result, electricity generators couldn’t produce enough power to supply the demand, leading to multiple component failures. Consumers contended with shockingly high electricity prices as supply dwindled and utilities worked to repair the power grid.
Low electricity rates during spring and fall also support the connection between Texas weather patterns and electricity prices. October and April electricity rates averaged around 15 cents per kilowatt-hour (kWh), the cheapest on our marketplace. Temperatures in fall and spring tend to be moderate. When the weather is mild, electricity demand is low, allowing for more energy supply and minimal strain to the power grid.
A surprising finding in our data showed that August ranks on the lower side for average electricity rates, despite consistently being the hottest month in Texas. However, some deeper analysis of consumer behavior could explain this anomaly.
Considering August is the hottest month of the year, most Texans’ energy bills will increase as they use more energy for air conditioning. One hypothesis from our experts is that consumers shopping for new plans during this month may be more eager to select the cheapest plan available to offset their recent high summer electricity bills.
Another potential reason for August’s low purchase price could be that summer is a popular season to move. Between all the costs associated with moving, many shoppers in this transition may lean towards the cheapest rate possible. The number of customers locking in the lowest rates possible could be a contributor to August’s moderate price average. If you are moving to Texas, check out our moving guide for tips on how to save on your electricity bill.
Energy shoppers should remember that the cheapest electricity plan does not always lead to a lower energy bill. Deregulated energy plans are not one-size-fits-all — in fact, some plans are designed to benefit certain consumers over others. One plan may have an exceptionally low rate for consumers who use around 1,000 kWh per month, thanks to a bill credit. However, that plan will be more expensive for someone who only uses 700 kWh per month because they won’t use enough electricity to receive the bill credit. Read your past bills to determine your average usage and shop within your consumption range to secure the right energy plan for you.
Not sure what type of plan is best for you? Call the number on your screen to speak with one of our specialists and get matched with the right plan.
Because energy rates vary by usage level, it’s important to consider how average prices differ based on which usage tier you fall into. Here’s the price per kWh for each month at the 500, 1,000, and 2,000 kWh usage levels.
Our data analysts dove further into Texas electricity rates by month and broke down the average purchase price by usage tiers. While there are slight variations to our overall average rankings, January and October continue to be the most and least expensive months to shop for energy.
According to our data, October and April are the best months to shop for cheap energy. However, not all shoppers have control over when their plan ends or when they move homes. If you find yourself shopping during an expensive month like January, here’s what to do:
Let us put the power in your hands with a new electricity plan.
