Why Comparing Available Houston Electricity Rates Is Important

Since the deregulation of the energy market in Texas happened in 2002, Houston electricity rates have become highly competitive. Many competing energy supply companies are now lowering prices in an effort to woo potential customers. Their efforts to provide better service, lower prices, and the identical product offered by the local utility company, gives every electricity consumer the advantage of purchasing power at a low-cost.

Energy Choices

It is important to compare the available Houston electricity rates between the various energy suppliers. Some of these companies offer extremely low “introductory” rates in an effort to entice the potential customer. However, after their introductory price expires, the cost of variable or fixed rates might be extremely high when compared to their competitors.

Alternatively, some companies offer businesses the ability to purchase electricity at a wholesale rate. These Houston electricity rates can save businesses substantial amounts of money every month. Usually, the business signs an agreement or contract that states exactly how much they will pay per kilowatt hour during certain times of the day, month or year. Generally, these contracts or agreements will last for years at a time.

For the homeowner, they can save on their monthly utility bills by electing to pay for their power at a variable rate, or a fixed rate. The variable rate will change, sometimes daily or monthly, based on the demand for energy. They may pay higher rates during peak times, when Houston residents and business owners are cooling or heating their homes at the hot or cold times of the day.

For households that stick to a strict budget, it might be simpler to purchase their Houston electricity from a supplier at a fixed rate. Even though there may be times when electricity sold at a variable rate might be lower, overall, they may be able to budget their energy use by paying a fixed rate over time.

Smaller households and businesses does not consume much electricity might do better to compare electricity rates of utility suppliers that offer low variable prices. These types of variable rates will often increase and decrease based on energy demands caused by outside forces, including the fluctuating price of oil, gas, and other fossil fuels used to generate electricity.

With a wide array of alternative Houston electricity suppliers available, consumers can take advantage of paying lower prices, when switching to a new provider. Usually, there is no change or interruption in the service, with the exception of receiving a different looking bill from their new energy provider.

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