When’s the Best Time to Buy Electricity in Texas? A Month-by-Month Guide

The best and worst months to buy electricity in Texas

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. Use this data to inform your shopping decisions and learn which months may be best for affordable rates.

Caption: Lowest to highest months for electricity prices from January 2022–December 2024

October is the cheapest month to buy electricity on our marketplace, with an average purchase price of 15.34 cents per kWh. On the other end of the spectrum, customers typically experience the highest electricity prices in January, averaging 18.19 cents per kWh. This data displays a trend of spiked electricity prices in winter, while the shoulder seasons bring relief for consumers.

How weather conditions impact electricity 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:

• Electricity demand: When the weather reaches uncomfortable temperatures, like heat waves in summer or cold snaps in winter, electricity usage skyrockets across the state. This creates a higher demand for power that the Electric Reliability Council of Texas (ERCOT) struggles to meet. Demand increases often lead to price spikes as power companies work to supply enough electricity.
• Power grid strains: Increased demand and dangerous weather conditions expose vulnerabilities in the power grid and can damage critical components like transmission lines and power plants. The cost of repairs and improvements is often distributed amongst consumers in the form of higher Transmission and Distribution Utility (TDU) fees.

Winter price spikes analysis

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.

Fall and spring bring relief for energy shoppers

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.

Understanding August’s unexpected low prices

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.

High summer energy consumption

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 may be eager to jump on the lowest rate possible to offset their recent high summer electricity bills.

Peak moving season means more energy shoppers

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.

The lowest rate does not always mean lower bills

Energy shoppers should remember that the lowest electricity rate 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.

Price variations by usage tiers

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.

Caption: Electricity rate fluctuations according to kWh usage tiers.

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.

Caption: Monthly price variation by 500 kWh, 1,000 kWh, and 2,000 kWh usage tiers.

How to shop for electricity during an expensive month

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:

• Compare your options: Use our marketplace to compare prices in your area. Rates may be high, but it’s important to weigh your options instead of jumping on the cheapest one. The best plan will align with your usage patterns.
• Explore bill credit plans. Bill credit plans offer a discount on your monthly electricity bill if you use a certain amount of energy. If the usage requirements match your energy patterns, these plans are a great way to attain cheap monthly energy costs.
• Consider a month-to-month plan: Month-to-month energy plans allow customers to cancel and switch at any time. This could be a good strategy to wait out an expensive month and switch once the shoulder season brings more favorable prices. While you may be subject to peak pricing, you can cancel with no penalty once prices drop.