Key factors to picking an electricity provider
Choosing an electricity provider in Texas’ deregulated market involves more than just selecting the cheapest option — it’s about finding a provider and plan aligned with your lifestyle and energy habits. There are four main categories to consider when comparing providers: plan type, contract length, provider rating, and price. By focusing on these key factors, you can find the best provider for your energy needs.
1. Plan type
The type of energy rate you choose impacts the price you pay for electricity. There are two main rate types: fixed and variable. Fixed-rate plans are best for stability because your rate is locked in for the entire contract. Variable-rate plans are more fluid because your rate shifts with the energy market on a monthly basis, and you don’t have to sign a contract. Once you know which rate type is best for you, search for providers offering those plans on our marketplace. Enter your ZIP code and narrow your options using the rate type filter.
Pro tip: Customers who want predictable utility bills typically choose a fixed-rate plan, whereas those who want flexibility opt for a variable rate.
2. Contract length
Your contract length determines how long you are committed to an energy plan. If you rent, a good rule of thumb is to match your contract length to your lease so you don’t overpay or experience a gap in coverage. If you own your home, you can spring for a longer contract for added peace of mind. Most energy plans range from one to three years, but shorter options, like month-to-month or six-month contracts, are also available.
Pro tip: Locking in a long-term fixed-rate plan can help you avoid increased renewal rates that often impact customers after their one-year plan ends.
3. Provider rating
We rate every electricity provider on our marketplace to help you evaluate its performance. Categories we assess include customer service, digital experience, and plan variety. Be sure to consult our energy provider ratings to learn about a provider’s strengths and weaknesses before you sign up.
4. Price
Most consumers want to save on energy costs, but surprisingly, the cheapest electricity rate doesn’t always lead to the lowest energy bill. The best way to ensure you get a good price is to shop according to your usage tier. Deregulated energy plans are broken into three usage tiers: 500, 1,000, or 2,000 kilowatt-hours (kWh). Check your past energy bills to learn which usage tier you fall into, and then filter plans on our marketplace to find the best rate for your average consumption.
Note: A recent survey conducted by our energy experts found that price was the most important factor for Texans shopping for electricity. Read the full article on what matters most to our energy shoppers.
5. Additional features
Energy shopping involves more than just the categories we already mentioned. Here are a few additional factors to keep in mind when comparing providers:
- Fees: Check the Electricity Facts Label (EFL) to find any additional fees included in your plan, such as early termination fees (ETF).
- Renewable energy: Many of our providers offer renewable energy plans, enabling you to save money while reducing your carbon footprint. Filter for green energy if this feature is important to you.
- No-deposit options: If you have low credit and don’t want to pay a deposit, you can shop for no-deposit and prepaid plans on our marketplace.
- Same-day activation: Some providers will activate your service within 24 hours if you’re on a tight timeline. Review our list of same-day electricity providers if you need to get the lights on fast.