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Picking the best energy plan for your household isn’t always straightforward in Texas’ deregulated energy market. With the variety of rate types, plans, providers, and features to choose from, there are a lot of factors to consider.
One of the main decisions you’ll face is whether to choose a fixed-rate plan or a variable-rate plan. Your choice ultimately depends on whether you prefer the stability of a fixed rate or the flexibility that comes with a variable rate. Regardless of which you select, Choose Texas Power can help you understand your options and ensure you find the right fit.
Fixed-rate energy plans have a set electricity rate for the duration of your chosen contract. Energy contracts typically last between one and three years, allowing you to lock in your price. The main drawback to this type of plan is that you may have to pay an early termination fee (ETF) if you cancel your contract early. ETFs vary by provider and plan but often range from $150 to $350.
Expert advice: Every plan contains an Electricity Facts Label (EFL), which outlines key details about your plan. Review this document before signing up to ensure you understand the fine print.
Pros |
Cons |
|---|---|
| Energy bill predictability | May incur an ETF if you cancel early |
| Protection from price spikes | Could miss out on dips in the market |
| Cheaper rates | |
| Greater variety of plans |
Fixed-rate energy plans are ideal for shoppers who want affordable energy bills and are comfortable committing to a contract. This plan eliminates stress about unexpected price increases because your rate is secured. Consider your energy needs to learn if your priorities align with a fixed-rate plan.
Energy need |
Fixed rate compatibility |
|---|---|
| Affordability | ✅ |
| Protection from market volatility | ✅ |
| Flexibility | ❌ |
| Predictable energy bills | ✅ |
| Plan variety | ✅ |
| Renewable energy options | ✅ |
| No early termination fees | ❌ |
Variable-rate plans are a more flexible energy option, because there is no contract and you have the freedom to switch plans at any time. The electricity rate with this type of plan is tied to the energy market, so it can fluctuate monthly with the wholesale cost of energy. Variable-rate plans contain more risk because your rate can change month-to-month.
Pros |
Cons |
|---|---|
| Flexibility | Higher rates |
| No contract | Subject to price spikes |
| No early termination fees | Fewer plan options |
| Freedom to switch plans anytime |
A variable-rate plan is ideal for shoppers who are willing to take on some risk in exchange for flexibility. Whether you’re moving or only have a few months left on your lease, a variable-rate plan can provide short-term electricity to help you get by.
Energy need |
Variable rate compatibility |
|---|---|
| Affordability | ❌ |
| Flexibility | ✅ |
| Predictable energy bills | ❌ |
| Plan variety | ❌ |
| Renewable energy | ❌ |
| Avoid early termination fees | ✅ |
Expert advice: If energy prices are surging in your area, a variable-rate plan can help you weather the storm until more favorable rates become available. While you may face high bills temporarily, you’ll be able to switch plans once prices drop without paying a penalty.
Our energy experts generally recommend a fixed rate over a variable rate due to the wider selection of plans, better affordability, and protection from market volatility. Fixed-rate plans enable you to better manage your energy costs because your bills will be more consistent.
That being said, there are scenarios where a variable-rate option may be a better choice. If your housing is in transition or you can’t commit to a contract, a variable-rate plan is a convenient short-term energy solution.
Regardless of your energy needs, Choose Texas Power can help you find an energy plan that matches your unique situation. We partner with Texas’ top energy providers to offer shoppers innovative energy plans at an affordable price. Here’s how to find your best fit:
Navigating your energy options can be overwhelming, but you don’t have to do it alone. Call our energy experts at the number on your screen if you need help determining which plan is best suited for you.
Fixed-rate energy plans are typically cheaper than variable-rate plans. Our fixed-rate options are as low as 9–10 cents per kilowatt-hour (kWh), whereas variable-rate plans tend to hover around 20 cents per kWh.
Yes, you can always switch energy plans, but you may incur a penalty if you cancel your plan early. Review your Electricity Facts Label (EFL) to learn about any fees associated with your plan.
Typically, the cheapest times to buy energy are spring and fall, as the weather in Texas is milder, leading to lower electricity demand. Prices can rise again in summer and winter due to more extreme weather conditions, resulting in higher energy consumption and costs.
Let us put the power in your hands with a new electricity plan.
