Houston Electricity Providers: 5 Things To Know

The following is a sponsored post brought to you by Payless Power, a top Houston electricity providerwith the goal of decreasing the cost of electricity for all.

The city of Houston is the largest in the state of Texas and is home to over two million individuals. In order to power the many homes and businesses within it, Houston is served by a number of electricity providers. In many ways Houston is unique as it, like several other Texas territories, resides in what is known as the deregulated electricity market. This has some important implications for those living in the city as that designation enables residents to consider the many electricity providers that service the state and select the company and plan that works for them. Because of this, providers will offer a range of plans and service features that ultimately help customers to save. In order to get in on those savings, there are several things consumers should understand.

Whether looking for a new provider or not, the following are five things that all residents need to know about Houston electricity providers.

Electric Suppliers vs. Utilities

Though most of us think of the companies that provide us service as all being the same, a specific distinction needs to be made. Utilities are the entities that address power outages, use electric meters to determine the energy households use each month, and control how electricity is distributed. In comparison, a retail energy company is responsible for supplying homes and businesses with power, a duty that includes using sustainable energy options and providing customer service. The two work together in order to supply your home with power as the utilities handle the energy delivery and the retail energy suppliers are responsible for determining your rate and the terms of your contract.

Healthy Skepticism of Power To Choose

Power to Choose is the state of Texas’ official electric site and one of the most frequently cited online energy resources. By having individuals input their zip codes, the site provides a sorted list of electricity providers and rates compiled in order from cheapest to most expensive. Power to Choose even gives those looking at plans the ability to sort results by company, price, and renewable sources of energy. And while the site may seem like a reliable tool, it is important to be mindful of some of its shortcoming. Based on its ordering and the use of rates as the prominent metric, individuals examining the site hastily may opt for a plan with a low rate without understanding the full implications of what the coverage of that plan entails. That, coupled with the site’s history of publishing plans that end up including hidden fees and minimum energy usage requirements, make it quite necessary to be wary of the listings. Right now, the Texas Public Utility Commission(PUC) is getting involved and pushing Power to Choose to improve its overall site transparency.

Prepaid Electricity

One notable energy plan that the citizens of Houston have the ability to take advantage of is prepaid electricity. This is a unique kind of service that it does not always entail the standard measures used by electricity providers before serving. Most notably, there is no initial deposit, credit check, or long-term contract required beforehand. Just as its name would imply, a prepaid electricity plan involves the customer making a payment which will grant them service until that amount has been used up. At that point in time, simply making another payment will allow service to continue. For those trying to cut back on their energy usage to save money, prepaid electricity is one possible route to consider. Energy usage can even be tracked online or through email alerts so that consumption is kept cost-efficient.

Regular Rate Checks

Part of keeping costs down and finding an optimal energy plan is to understand the one you have currently and to take a look at it every so often. This allows for a working knowledge of the standard costs incurred while also helping to identify any hidden fees that may not have been picked up on initially. Also involved in the keeping up with your plan is knowing the terms of your current contract including when it expires, whether your rates are fixed or variable, if you have included features like free nights and weekends, and of course, knowing your rate per kilowatt-hour. From there, do a bit of comparison shopping to see what other options you may have. Even in the event that you’re happy with your service, if there is an opportunity to save hundreds of dollars on electricity each year you may want to consider taking advantage of it.

Switching Providers

A number of factors need to be taken into consideration during the process of deciding whether or not to switch electricity providers. While saving money is typically the goal, there are other things that consumers should keep in mind to ensure better service. Something to remember with a new provider is that often the subtler parts of our experience can change drastically with a switch. This includes quality of customer service, length of contracts, and cancellation fees. Along with using the price as a metric for a change, those looking to switch providers should also consult customer reviews. These will provide an honest look at what companies are like from the perspective of someone receiving service, which can give some valuable insights. In the event you do decide to switch providers, call ahead to ensure there is no early termination fee. In doing this, know that you do not need to alert your current energy company to the fact that you are changing providers as your service will automatically be switched to your new electric company.