Are you considering signing up for the Gexa Energy BOGO plan? Before you do, take a few minutes and read this review.
With the Gexa BOGO plan, you may be in for a mistake that could cost upwards of $672 more annually than the lowest rates available today on ComparePower.
If you’re reading this you’ve probably seen Gexa advertise their latest energy plan: the Gexa BOGO plan.
BOGO stands for ‘Buy One Get One”. As the name implies, with this plan if you buy one kilowatt-hour you get one kilowatt-hour for free. Said another way, you get 50% off of your “energy charges” with this plan.
As we’ve mentioned in similar plan reviews, there is no such thing as a free lunch. What often seems too good to be true really is.
It is up to you to do your due diligence and ensure you’re not footing the bill by picking the wrong plan for your household.
Spoiler alert: With the Gexa BOGO plan it actually is you footing the bill. Read on…
We’ll break down this plan and explain the details so that you are informed about what this plan is all about. Ultimately we’re here to help you find your best electricity plan for your Texas home.
This plan review is for the Gexa BOGO 12 plan.
Any product or company names, marks or logos shown on this page are the property of their respective owners. ComparePower is an independent marketplace offering free electricity pricing comparisons for consumers.
Time to read: about 4 min
Sections in this guide:
Click on a section to navigate directly to it:
- What is Gexa BOGO?
- Gexa BOGO in Dallas (Oncor)
- Gexa BOGO in Houston (Centerpoint)
- Conclusion: Key Facts and Takeaways
What is Gexa BOGO?
The Gexa Bogo plan advertises 50% off your energy charges. So if you use 1,000 kWh in energy charges, you’ll only pay for 500 kWh. Sounds great, right?
We thought so too, which is why we decided to take a deeper look at this plan’s Electricity Facts Label (EFL) to uncover the details and show you the real math and cost of this plan compared to other plans offered by competitive electricity providers on ComparePower.
Gexa BOGO plan in Dallas (Oncor)
According to the Gexa Bogo EFL, Gexa charges Oncor customers an average price of 10.6 cents per kWh for 2000 kWh of monthly usage.
Oncor serves the Dallas area, which includes Fort Worth, Plano, Arlington, Frisco, Allen, and several other surrounding suburbs.
As of April 2018, ComparePower lists Oncor service rates as low as $0.079/kWh for the same 2000 kWh of energy.
That is 19% less than the Gexa BOGO plan for the same 2000 kWh of energy usage.
If you were to choose the Gexa BOGO 12 month energy plan you would be paying $436 more over the course of the year than the lowest priced plan on ComparePower.com for 2000 kWh of energy usage per month.
What about those of us who don’t use 2000 kWh a month?
Here is the real-math break down for 500, 1000, and 2000 kWh/month usage profiles in the Oncor service area:
Gexa BOGO plan in Houston (CenterPoint Energy)
According to Gexa’s EFL, Houston residents (CenterPoint Energy service area) see rates as high as 11.8 cents/kWh for 200 kWh of monthly usage with the Gexa BOGO plan.
As of April 2018, ComparePower has rates as low as $0.090/kWh for Houston area residents including surrounding suburbs of Katy, The Woodlands, Humble, Kingwood, and several other greater Houston area suburbs.
The rate offered on ComparePower by competing energy companies is 24% less for the same 2000 kWh of monthly usage for Centerpoint service area residents.
That is $672 more per year than the lowest priced plan on ComparePower.
Here is the break down for all usage profiles in the Centerpoint service area so you can see the savings over the Gexa BOGO plan in the CenterPoint Energy service area:
Conclusion: Key Facts and Takeaways
Key Fact: The 50% Discount is already included in the price advertised on the Facts Label (EFL).
Gexa already includes the 50% discount on the rate you see in the Gexa Energy BOGO EFL.
In other words, the 50% discount is already calculated into the 10.6c/kWh Facts Label rate (Oncor, Dallas area residents) and the 11.8c/kWh Facts Label rate (Centerpoint, Houston area residents).
The marketing play here is the classic ‘raise the price and cut it by 50%’ to make it seem like you’re getting a great deal and saving money. In this case with the BOGO plan, you would be clearly overpaying.
You could make reading this EFL much easier and straightforward by taking half the value of the energy charge as we’ve demonstrated on the following image:
If you’re still reading this we want to make this point abundantly clear. Without the discount, the all-in rate for 2000 kWh of energy is 17.6 cents/kWh for Oncor (Dallas, Fort Worth, and Arlington) area residents and 19.3 cents/kWh for Centerpoint (Houston, Katy, and Humble) area residents.
To make matters worse, once you realize you’re paying 24% more on your electricity bill than competing providers you will have to pay a $150 early termination fee to get out of the Gexa BOGO plan.
Don’t get locked into an expensive plan thinking you’re getting 50% off of your energy bill. It really could cost you hundreds of dollars over the course of your contract.
Keep things simple, shop by price and avoid things that sound too good to be true – because they usually are.
Ready for a hard NO to BOGO? Find a straightforward plan on ComparePower.
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