Texas legislation gave customers electricity choice in 2002. This means that customers are no longer held in contracts with one company. Now, they can shop around and look at the most affordable rates for their individual electricity needs. From homes, offices, and even large businesses, electricity options are for everyone.
Chances are if you have been with the same company since the early 2000’s, then you are probably overpaying for electricity service without even realizing it.
REPs are the newest part of the deregulated market. Retail Electricity Providers directly sell you electricity, based on market conditions. These market conditions affect the cost of your electricity. If trade routes or supply becomes stringent, new or variable rate customers will see higher rates for their month to month bill. When you have a fixed rate plan, your rate won’t go up or down until your contract is up for renewal. Contracts can last between 3 and 36 months, usually. Fixed rate plans give you security against sudden rate hikes due to weather, conflict, or supply disruptions, but should market conditions become more favorable, you are still locked into the higher rate.
As a customer, know that you have options when it comes to powering your home or business affordably. Grab your electric bill, and check out our website to compare your rate against others.