Compare Houston Electricity Companies

Living in Houston allows you the ability to shop and compare offers between dozens of electricity companies licensed by the state of Texas to supply power to Houston area homes and businesses. While these options present opportunities for all electricity consumers to greatly lower their monthly expenses, it also presents opportunities to misunderstand offers being displayed to you which can cost you greatly when that monthly electric bill shows up in your mailbox, or inbox. If you are looking to compare electricity companies in Houston it is important that you are aware of the tricks that some electricity companies are engaging in to make their offers look more attractive.

Hidden Charges

The term “hidden charges” gets thrown around a lot when talking about Houston electricity rate offers. While it is true that many rate offers being displayed do not include everything and thus have a “hidden charge”, it is important to understand that all of these hidden charges will be displayed in the offer’s electricity facts label. The Texas Public Utility Commission requires that all Texas electricity companies have an electricity facts label associated with every rate product offered which needs to outline every detail of the charge. These facts labels also contain the final rate that a customer will pay if they use specific amounts of electricity in a given month. The electricity facts labels will tell you the exact rate that you will pay if you use 500 KWh, 1,000 KWh, and 2,000 KWh. However, is important to understand that those rates only have to hold up if you use exactly the the stated KWh amount. Hidden charges can cause you to pay one rate if you use exactly 2,000 KWh and a much higher rate if you end up using 1,976 KWh.

The most common hidden charge is a monthly meter charge that only goes into effect if you don’t use a certain amount of electricity. For example, perhaps you find a great fixed rate contract that states you will pay $0.08 per KWh if you use 1,000 KWh in a given month. After reviewing your usage history, you see that you usually use between 950 and 1050 KWh, so this rate plan seems like a good fit for you. On closer inspection, by reading the electricity facts lablel, you see that the electricity company charges a $10 meter fee if you use less than 1,000 KWh in a given month. This means that if you use 999 KWh you will be charged an extra $10. In this example, that extra $10 will turn your low rate of $0.08 into a full penny higher of $0.09. Perhaps there was an offer from another Houston electricity company that was charging a fixed rate of $0.082 with no meter charges no matter how much power you consume. This is why it is important to carefully review the electricity facts labels for the rate you are thinking about selecting.

These hidden charges are especially dangerous to small homes and apartments. The smaller the amount of power you consumer the bigger effect a monthly surcharge or meter charge will have on the overall rate. Some Houston electricity companies have taken advantage of this situation by offering very low rates with high meter charges in order to make the offer look attractive, even though in reality the rate will end up being several pennies higher than more honest electricity company rate offers.

Electricity choice can be a wonderful thing and can result in lower electricity bills and greater flexibility for consumers who want to take greater control of their finances. However, it is important that when you compare Houston electricity companies to take a close look at the offers being presented so that you don’t end up with high hidden charges.


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