Your Guide to Choosing an Energy Supplier

Switching energy providers can help you save up to 20% on your monthly electricity bills if you live in one the 15 states that has energy deregulated. It's not just a good idea. According to the U.S. Energy Information Administration, the average American household would save $277.18 per year.

What is stopping people in states like Texas and Pennsylvania from taking advantage of these savings? It can be confusing, if not frightening, to switch energy providers. This guide will help you to understand the various variables that you need to compare different providers.

Three factors should be considered when selecting an energy provider (also known as a supplier or a company that provides energy services).

• Reputation of the supplier.
• The rate.
• The plan's length.

How to choose an energy provider: The reputation of the supplier

There are many energy suppliers available, so it can be difficult to choose one. This is true for all energy suppliers, not just the first. Don't accept the current price from your utility or provider. We'll help make it easy for you to deregulation electricity prices.

What is the problem with this process? It's mostly because deceptive marketing is used by some energy providers to offer low "teaser" rates, which increase after a few months, or hide significant fees and charges. Shady operators took advantage of confusion and energy deregulation, which is still a relatively new concept for many.

EnergyReviews handles all the vetting. We carefully review each plan offered by energy providers and present only those that are free from hidden teaser prices. We show Texas "all-inclusive" rates with delivery and transmission charges. (Providers from other states usually only show the energy supply rate.

We offer energy provider reviews, which are objective assessments of the companies with whom we have worked. Quarterly updates will be provided with ratings based on factors like customer service, online accessibility and business history.

EnergyReviews has worked with many of the most well-known providers in Texas such as TXU Energy, Reliant Energy and Direct Energy. It also works with new providers, such as Chariot Energy and Iberdrola Texas.

How to choose an energy provider: Rates

When choosing an energy provider, the second thing to consider is the cost of service. What rate do you prefer?

Fixed-rate energy plans will allow you to pay the same rate for service for the entire term of the plan. If you pay attention to your budget, this is a good plan. Rates are fixed, so usage is the only variable. You can control that. The amount of electricity used by Texas residents varies month to month. In August, they use twice the amount as much as April. You won't use most of your energy in the daytime hours. Because rates are locked in you are protected from price increases in the wholesale electricity marketplace. Remember the Texas price explosion of summer 2019.

Variable rate plans allow you to adjust your rate per kilowatt-hour monthly as it is tied below to the market price. You might pay a lower rate if prices drop, but let's face it: prices never fall for anything. You could also end up paying more if prices rise.

Rates are linked to Texas usage levels, which in Texas are generally 500, 1000, and 2,000 kilowatthours (kWh). A rate that is attractive at one level may be very different at another. Be sure to link your selection to realistic usage levels.

Choosing an Energy Provider: Plan length                                

The plan length is another factor that can make a difference in choosing an energy provider. It can be daunting to choose between a 6-, 12-, 24-, 24 or 36-month plan. Your risk appetite will determine whether you choose a long-term or short-term plan. Read the best Express Energy Reviews for choosing the best energy plans.

When you sign up to a fixed-rate energy program, you agree to pay that rate for the duration of the plan. You are usually charged an early termination fee if you cancel your plan before the term ends. It's located in your Electricity Facts Label. Some of the fine print is difficult to read. Texas has an exception to the early termination fees for customers who move and can show proof of their new address.

Rates are a matter of opinion. Prices for shorter-term plans tend to be slightly more expensive than rates for long-term plans.

Bottom Line

Spend $277 per year and stop wasting it. It is not difficult to choose a provider. Once you have all the information you need, you can enter your zip code to find out what is available in your area.

After you have selected a plan, you can sign up online or by calling the number provided on this page.

Are you still unsure? Still unsure? Our energy experts are also available at the phone number listed on the page. They will guide you through the process to find the best rate for you.