Tips for Getting Cheaper Electric Rates

Most consumers are becoming tired of overpaying for utility services. Part of the problem has always been that customers had only one choice of local electric provider so they simply had to pay the going rate. Today, Texas utility customers are allowed to get their electric services from a variety of providers, allowing them to find cheaper electric rates. With monthly living expenses on the rise, it is a welcome option to be able to choose between different power providers. When considering shopping for cheaper electric rates there are a few things to keep in mind.

Before you get started you’ll need to print a copy of your current electric bill. This will give you a starting place to compare various rates and companies. In Texas, power companies are required to provide consumers with Electricity Facts Labels (EFL) for easy comparison. The EFL includes rates and facts about service so people can more easily review and compare power companies. When looking for cheaper electric rates you want to look at various things including the cost per kilowatt hour. This rate varies greatly from company to company.

As you review rates you’ll need to consider what is included. Sometimes a company offers cheaper electric rates but then adds monthly service and meter fees. It’s best to look at all the potential costs to find out what your actual monthly electric bill will be once all the extra services fees are added in. You may see companies offer bundled services. Bundles are all-inclusive so what you see on the fee is the total you’ll be charged for the month. Unbundled services may look very enticing because of low rates, but you do need to consider extra charges that aren't part of the price. Often these prices end up being about the same as those of other companies.

When looking into rate pricing there are two main options – fixed rate and variable rate. Fixed rate services offer prices that will remain the same for the duration of the contract. Variable rate contracts are riskier because the rate could go up or down during the term. However, the beginning rate may look very appealing. Keep in mind that the rates often go up rather than down and by the end of your contract you could end up paying more than you would have otherwise. Take time to look at all the various choices and options to find an electricity company that offers the best services at the best prices.