In 1999, Texas passed a law that changed the marketplace so residents and businesses could choose their electricity provider with various types of customer service levels, plans, rates, etc. The free market was supposed to encourage competition and lower prices.
In conjunction with the new law, the Power to Choose (www.powertochoose.org) was intended to be the fact-based, unbiased website of the Public Utility Commission of Texas (PUCT) to compare electricity rates for your home (residential), but big electricity companies are sneaky!
The Best Electricity Rate is The Lowest Electricity Rate, Right?
Sure you have the power to choose and shop around to hunt down the lowest electricity rate but electric companies have the power to deceive too. They have learned how to skirt the system and present devious terms into their offers/contracts to dup residential electricity customers into paying a high rate.
Fight Back With The Real Power To Choose & Uncover The Real Lowest Electricity Rate
GET THE BEST ELECTRICTY RATE
Everything Wizard Energy does is rooted in honesty and Impartiality in dealing with big electricity companies. Today, we partner with Chariot Energy because they offer a clear and low fixed-rate.
Please note that you will leave this website and connect to Chariot Energy.
Here’s what to look for and how to get the lowest electric rate in Houston and throughout Texas in 2022.
Minimum Usage
This is a sneaky tactic that is a bunch of smoke and mirrors. The electricity provider adds a “minimum usage” term in the agreement like 2000 kWh. If you use that much energy you get a rebate. If not, no rebate. This allows them to advertise a really low rate when a residential customer uses exactly 2000 kilowatt hours.
If you are conservative with your energy usage at home and don’t reach the minimum usage, then you do not receive the rebate, and your effective price on electricity essentially doubles going from $.14/kWh to $.28/kWh or higher. And once you go above 2000 kWh, the rate steadily goes up to a very high rate steadily trending up from $.14/kWh up $.05 every few hundred kilowatt hours you use over 2000. It is a awful tactic and unfortunately the PUCT allows it.
Avoid “minimum usage” at all costs!
Market Rate (Indexed) Electricity Price
The rate you pay in an indexed rate plan (also called market rate plan) can go up or down each month. The difference is that the rate is tied to a pricing formula connected to a publicly available index. If the index rises, your monthly rate will also, but if the index falls, your rates will be lower. With an indexed plan, the price per kWh can change substantially each month, which is a HUGE RISK.
Any rate tied to a formula for residential electricity should be avoided. It’s an unnecessary complication. Why can’t they just present a simple price? Avoid “Market Rate” electricity plans!
Changing Rate (Variable) Electricity Price
Variable rate plans have no monthly contract or cancellation fee, but the rate you pay per kilowatt hour can vary from month to month. The rate can go up or down based on the discretion of a big electricity company.
You can gamble on free market prices falling in the future, but you increase the risk of it going up due to natural disasters, cold winters, or adverse market conditions.
This is not worth the risk. The electricity company has zero risk and you take it all. Avoid “Variable Rate” electricity plans!
THE BEST: Fixed Rate Electricity Price
A fixed-rate plan has a set rate that doesn’t change throughout the contract. It is as simple as that! It gives you peace of mind and allows you to budget your household.
Ready to Simply Get The Lowest FIXED (BEST) Electricity Rate?
Please note that you will leave this website and connect to Chariot Energy.
Other Ways to Lower Your Electricity Bill
