Learning Center

What is average billing?

Average billing lets you pay a fixed amount every month instead of paying more during high-usage months and less during low-usage months making budgeting for electricity more predictable.

Have you ever found yourself in the middle of a Texas summer, the sun beating down on your home, wondering what your next electricity bill is going to look like? 

Texas weather is notorious for extreme weather throughout the year with little to no predictability. The only guarantee you have is that summer will probably be hot and winter can get cold. 

These changes in the weather can have a major impact on your electricity usage, and if you have ever wondered if you could even out your electricity bills, then average billing might be right for you. 

Average billing, also known as budget or balanced billing, uses your electricity usage throughout the year to calculate an average bill each month. 

Your bill remains relatively flat throughout the year, and you will have a much better idea of what your electricity bill will look like. 

This makes it easier to plan for your electricity bill, and you won’t have to worry about a hot week in the middle of March wrecking your budget. 

The important thing to remember is that average billing just offsets your bill each month based on your average usage. One way or another, you end up paying for your actual usage throughout the year. 

Instantly find the best energy plans in Texas.

How does average billing work?

The idea of average billing is that it should get you close to having the same electricity bill at the end of each month. 

Ideally, you’ll end up with predictable bills throughout the year so that you can easily budget for electricity. 

Retail electricity providers (REPs) use a simple formula to calculate what your average bill will be each month. 

They add up your past 12 months of electricity usage and then divide that number by 12 to get your average monthly electricity usage in kilowatt-hours (kWh). 

Once they have that number, it is multiplied by your current electricity rate to determine what your average monthly bill should look like. 

If you average 1,500 kWh of usage each month and your rate is 10 cents per kWh, your average bill each month would be $150 throughout the year. 

Each month your REP also looks at your bill to compare your actual usage with what you were billed for.

If you use more or less energy than your average, you’ll have a deferred balance that keeps track of any differences. 

Most providers will add 1/12th of your deferred balance to your next month’s bill to avoid that deferred balance getting too big. 

At the end of your electricity contract, any remaining balance will be added or credited to your account by your provider. 

If you don’t have a full year of electricity usage history or don’t have any at all, the REP can also use any previous history from your service address to calculate your average. 

Unfortunately, the calculation will be based on someone else’s electricity usage habits and likely won’t be accurate for you, so just keep that in mind before signing up for average billing.

Does average billing save you money? 

Are you wondering if average billing is worth it?

The unfortunate side of average billing is that you don’t end up saving any money at all. Each month your electricity provider adjusts your bill to smooth out any spikes in usage. 

Say it’s March, and you get surprised with some great weather. The clouds blow away and you’re wearing shorts and t-shirts for a week straight, so you crank up the air conditioning. 

You enjoyed the sun, got a tan, and now you have extra electricity charges that you haven’t paid for. The difference between your average bill and your actual charges is set aside in a deferred balance. 

Your provider is happy to keep track of anything you owe them and make sure that you don’t underpay regardless of the difference. 

If you manage to use less electricity, you can end up with a negative balance or a credit on your account. When your contract ends, your provider will apply for any credit on your account to your last bill. 

At the end of the year, you’ve still paid for all of your electricity usage and haven’t saved a dime. 

Compare energy plans and find an affordable electricity rate instantly.

What are the benefits of average billing?

The main benefit of going with an average billing plan is that your bill will stay relatively consistent throughout the year. 

You might have a small increase here or there to cover a deferred balance, but you don’t have to worry about any crazy weather spikes that could double or triple your bill in a single month. 

This makes it so that you’ll have a good idea of what your electricity bill will look like each month and you can easily budget throughout the year. 

Stability is great, but you still need to pay attention to your payments each month to make sure you aren’t racking up a large deferred balance. 

What are the drawbacks of average billing?

In an ideal environment, your deferred balance at the end of your contract would be close to zero.

However, any variation in your energy usage adds up and you can get stuck with a big payment at the end of your contract if you aren’t careful. It also matters when you start an average billing agreement.  

If you haven’t had a full year to sort through any overpayments and underpayments, you’re more likely to have a deferred balance left over. 

While average billing helps to smooth out weather extremes, they still have an impact on your energy use and can build your deferred balance throughout the year. 

And if you don’t have a full year of electricity usage history, then your average bill is based on someone else’s behavior rather than your own, to begin with.

Average billing can also lead to laziness when it comes to energy conservation. It’s easy to leave lights on and not pay attention to your thermostat if it won’t affect your wallet at the end of the month. 

In a worst-case scenario, your electricity contract expires and you end up on an expensive month-to-month holdover rate. 
 
The difference between your average bill and actual usage cost will grow your deferred balance even faster and you could be stuck with a big debt to pay. 

Is average billing right for me? 

Average billing is a great option for someone looking for a stable electricity bill throughout the year and isn’t afraid of keeping an eye on it. 

If you have a good understanding of your usage and are stable in your home, it should be easy for you to keep an eye on your deferred balance to avoid surprises at the end of your contract. 

You’ll have an easier time planning out your monthly finances without worrying about what the weather is doing. 

Stable electric bills could also be great for someone on a fixed income. You’ll have more consistent bills and won’t have to guess when planning your finances. 

Considering a new pool or maybe an electric vehicle in the future? You’ll want to wait on average billing if you think your usage patterns are going to change. 

A big change in your usage can lead to underpayment on your bill and a big deferred balance. At the end of your contract, you could be stuck with a massive bill to settle anything you owe to your provider. 

How can I get average billing?

You can request average billing for electricity by contacting your electricity provider directly by phone. Most providers on ComparePower offer average billing.

Compare energy plans and find a low electricity rates in minutes.

Other considerations 

If you aren’t sold on switching to average billing you have a few other options that could help you out with budgeting. 

You could try creating your own average billing plan without going through your provider. Take a peek at your bills throughout the last year and figure out what your average payment was. 

Each month your bill is lower than your average, you can put that extra money into a savings account and use it to pay for any expensive months in the future. 

Your savings account might also pay you a small amount of interest on that money which is better than nothing coming from your provider. 

You can also look into plans that use bill credits. These give you a discount on your electricity bill when you use a certain amount of electricity each month. 

If you know that you will always hit that usage threshold, you could save yourself some money each month with one of these plans.

Furthermore, you can take advantage of bill credit plans by shopping with your home’s historical usage profile. Shopping with your home’s usage history lets you compare energy plans apples to apples.  

Learn how to switch electricity providers with your home’s historical usage.


ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

If you’re shopping for an electricity plan in Texas, it’s important to know how to read an electricity contract. 

When it comes to choosing the right energy plan for your household, there are a variety of options you can consider, including long-term, short-term, fixed-rate, and variable-rate contracts.

You are entering into a legal agreement. A contract is a legal agreement between you and your energy retailer. 

Look over the terms of service, electricity facts label, and customer rights page before you sign to make sure you are informed of all of the details. 

Understanding what is in your electricity contract can help you choose the best energy plan and help you avoid surprises on your electricity bill.

Compare electricity rates in your neighborhood.

Reading an Electricity Contract 

When shopping for electricity, you need to pay attention to three documents. Details matter, and nowhere is this more evident than with electricity in Texas. Be sure to carefully read each document before you sign your contract.

The Electricity Facts Label 

The first document you need to understand in your contract is the Electricity Facts Label (EFL), which is one of the most vital parts of your contract. 

Following complaints that it was difficult to compare electricity contracts apples to apples, the Public Utilities Commission of Texas mandated that all providers of retail electric service provide standardized information about their contracts via the Electricity Facts Label.

In the EFL you will find information on the charges for your electricity, including the cost per kilowatt-hour (kWh) and any extra fees associated with the production and distribution of electricity. 

Learn how to read your Electricity Facts Label.

Terms of Service 

Next, you will need to read and understand the Terms of Service (TOS).  

This is the legally binding part of your contract, and it is vital that you understand it before signing. 

It is similar to the terms and conditions you agree to when using other products and will give you information about the obligations both parties must fulfill. 

You’ll be notified a month before your contract expires and you can cancel or negotiate new terms any time within two weeks of your contract’s end date. 

Your Rights as Consumer 

Finally, you must know about “Your Rights as a Consumer” (YRAC). 

This document will detail the federal protections in place, like the supplier’s responsibility to not discriminate based on gender, race, and religion, as well as other rights you have.

This can include your right to privacy or the company’s obligation to notify you of certain changes and seek your consent when necessary.

Contract Expiration

Make sure your contract does not expire. Not doing anything is by far the most expensive option. 

You’re automatically put on a holdover rate when your contract expires, one that fluctuates based on market conditions, resulting in unexpectedly high electricity bills.

You might overpay for electricity if you let your contract expire without taking action.

Set a reminder here and we will notify you when it’s time to switch.

If you have an expired contract, it’s time to act. Comparing energy plans in Texas based on your usage history is the best way to save money.

Contract Renewal Cycle

Generally, you want to avoid contracts with short or odd-numbered terms, such as three or nine months, as these will expire when electricity demand is at its peak and prices are high for example right before or in the middle of summer in Texas.

These short-term plans may appear to be a good deal, but their purpose is to delay the end of your contract to a period that is less advantageous to you and more favorable to the electric provider long term.

Learn how electricity contract renewals work in Texas.

Compare electricity rates and save.

Shopping Considerations

Consider these additional factors when shopping for a new energy plan. 

Contract Length

The majority of electricity contracts last 6-12-24 months. 

If you are renting, the term of your electricity contract does not need to coincide with the term of your lease. 

You can cancel an energy contract in Texas if you move out, so you can select any term length that offers you the best price.

Going with a long-term contract is the best option if you plan on staying in the same place for a while and don’t want to change providers frequently.

Most Texas consumers find that 12-month plans offer the right balance between affordable rates and the hassle of switching providers often.

Short-term Contracts 

Short-term energy contracts last less than a year. Most providers offer six-month contracts, but a few offer three-month plans as well. 

Short-term contracts offer more flexibility if you don’t find shopping and switching providers burdensome.

You will have the opportunity to switch more frequently with a short-term energy plan, which can be an advantage if you like to shop the market for lower rates often. 

It might be a risky game, however. Plan prices in Texas tend to fluctuate with demand throughout the year. 

If you sign up for a short-term plan, you may find yourself renewing in a month that would be less ideal, such as in the middle of a hot Texas summer when prices are at their highest.

Unless you enjoy monitoring electricity rates often and understand how to shop we recommend going with a 12-month length plan. 

A full year between shopping tends to be a good balance between shopping for a new plan and minimizing the burden of having to shop for a new energy plan often. 

Long-term Contracts 

Long-term electricity contracts allow you to lock in an electricity rate for an extended period of time. They usually last anywhere from 12–36 months.

In a market where prices fluctuate, this gives you the ability to set your budget and avoid guessing what your bill might be each month. 

In addition, companies usually charge less the longer you commit.  

There will normally be a fee for canceling the contract, but if you move within the plan’s timeframe, there are consumer protections in place that may waive the early termination fee.

The drawback of a fixed-rate contract is that it keeps you locked in even when prices drop. 

Shop affordable Texas electricity rates.

Rate Type 

Most Texas consumers prefer a fixed-rate electricity plan over a variable-rate plan as they lead to more predictable power bills. 

Which is better: Fixed-rate or Variable-rate Electricity?

Fixed Rates

A fixed-rate plan keeps the same electricity rate throughout your contract period. This is a more traditional option and what many of our readers choose.  

Note that a fixed-rate energy plan does not mean your electric bill will always remain the same. You still pay for each kilowatt-hour that you use each month, which can change each month throughout the year.

The total amount of energy you use, the energy rate, and any additional fees charged by the utility will determine your monthly bill.

Variable Rates

On the other hand, a variable-rate plan will let you pay the market price for electricity. 

When rates drop, you see the savings. When rates go up, you pay the price.

If you are in a position where you can control your usage daily, this is a good option. 

You can use more electricity when prices are low and reduce usage during peak demand.

The decision is yours and you’re looking to find the best rates, regardless of the type of plan. 

The best electricity plan or rate is often determined by the price per kWh and your home’s kWh usage. 

Learn how to switch energy providers in Texas. 

Features

Some plans include features like 100% Green, Free Nights & Weekends, or a free Nest Thermostat. 

Deposits

Depending on your credit score and utility payment history, a deposit may be required. 

There might not be a deposit required from some ComparePower providers, so you can sign up for service right away. 

You may not have to pay a deposit if other providers do not require one. A single order gives you an overview of deposit requirements across providers. 

ComparePower can help you find a no-deposit plan quicker and more efficiently.

Go prepaid and avoid deposits and credit checks altogether?

Learn how to get no-deposit lights in Texas

Canceling an Electricity Contract

Cancellations are possible at any time, but there may be an early termination fee if you switch providers before your term is due. Be sure to read your contract and understand the cancellation rules.

In order to terminate an electricity contract before its expiration date and without paying an early termination fee, you must move out. 

An example of this scenario occurs when couples divorce, when family members go into the military, or when roommates move out.

With two or more people living in the same house, you can cancel your electricity contract and have someone else transfer it in their name to another electricity provider.

You can then have another household member place a move-in order through ComparePower for the same address with a new provider.  

Make sure that you select “move-in” at checkout.

Call your electric provider and ask them to cancel your service by a certain date because you are moving out. You can avoid service interruptions by doing this, and the bill will be removed from your name.

Depending on your provider, they may require proof, such as a forwarding address for your last bill, but you are not required to provide it.

Your home will be serviced by a new provider, and the electricity billing will no longer be in your name, but in the name of the other household member. 

In no way is this intended as a way to avoid paying your bills. Paying your electric bill on time will allow you to enjoy low rates without upfront deposits and remain in good standing with the electric company. 

Changing providers without paying your bill can hurt your credit and ultimately result in a higher rate or an upfront deposit.

Compare rates ad make an informed decision.

Electricity Contract FAQs

Will I lose power if my electricity contract expires?

No, you will not lose power if your electricity contract expires. Your current provider will continue to provide power to you, but at a high rate, called a holdover rate. 

Do not let your contract lapse. Inaction is by far the most costly and can lead to unpredictable electric bills. Shop with your home’s historical usage on ComparePower and find the right plan for your home in 10 minutes. Enroll online confident you got a great rate. 

Can I cancel an electricity contract?

In Texas, when switching providers, you can cancel an electricity contract without penalty within 3 days by contacting the provider directly by phone. 

Cancellations are possible at any time, but switching providers before the end of your contract may result in an early termination fee. In Texas, you have 14 days before the end of your contract to switch providers without penalty. Be sure to read your contract and understand the cancellation terms.

An electricity contract can also be canceled by moving out of your residence and ceasing service under your name entirely. You can easily cancel your electricity service when you move out by calling your electricity provider. Early termination fees do not apply when moving out. 


ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

ComparePower fixes the EFL

Do you feel befuddled when attempting to understand the differences between energy plans in Texas?

We did, too. That’s the reason we fixed the EFL. 

Like nutrition labels on foods, electricity fact labels provide information on prices and contract terms. 

There is just one big problem. The EFL only indicates the price you will pay for three very specific usage values of 500, 1000, and 2000 kilowatt-hours (kWh). 

If you’d like to know the price of electricity outside of those 3 usage points, you’re on your own.

Who uses exactly 500, 1000, or 2000 kWh each month? Looking back at my past bills, the monthly usage varies drastically with each season.

Many energy consumers in the state choose energy plans that seem like good deals based on the price advertised for three usage points that don’t even apply to them. 

There has never been a single month when I’ve used exactly 500, 1000, or 2000 kWh on my electric bill. And I bet you haven’t either.

Take a look at your electricity bill to see for yourself. While statistically possible, I would bet the majority of our readers on this site have never used exactly 500, 1000, or 2000 kWh on the dot every single month.

So then, how can you determine the real cost of electricity if you do not use exactly 500, 1000, or 2000 kWh?

Use ComparePower. Avoid hours of deciphering the EFL altogether. Our users can enter any usage value and see the prices for that exact usage on any of the plans in our marketplace.

Shopping directly on a single provider’s website you’ll have to decipher what you’ll pay for your home’s specific usage. Guessing at the right energy plan and hoping things work out.

Not here. Get a complete pricing profile for any electricity plan in our marketplace and for any usage value you choose.

No more guessing which plan is right based on three randomly chosen usage points. Know what you are buying before you buy it.

That is how ComparePower fixes the EFL. Here you can see the price for any usage and be confident that you made the right choice.

Compare energy plans according to your home’s specific usage, not three arbitrary points Texas electricity companies advertise.

The best energy plan for your Texas home is determined by comparing energy plans that match the historical usage profile of your home.

Enter your home’s past energy usage data and get an accurate estimate of what you’ll pay for an entire year of service, taking into account plan gimmicks such as bill credits and variations in monthly usage throughout the seasons.

This is how electricity shopping should be done. Clear and transparent.

Learn how to shop with your home’s usage history for real savings on your electric bill month after month.

Why is this so important? Check out this short 2-minute video to learn how ComparePower lets you find the best plan for you.

Find the real price you'll pay for electricity.

What is an Electricity Facts Label?

The Electricity Facts Label (EFL) is a legal disclosure mandated by the Public Utility Commission of Texas (PUCT) that must be included with all energy plans. 

The specifics of each plan will vary, but by reading an EFL, you can assess what you are getting from your energy provider.

To avoid surprises, the EFL intends to make the charges on your statement completely transparent, so you are never in the dark.

Your electricity provider can offer you a copy of each retailer’s electricity facts labels upon request.

The Electricity Facts Label allows you to compare facts in a consistent style and select a Retail Electric Provider based on your priorities.

Why should I use an EFL?

So, now that you’ve learned what an EFL is, why should you bother looking for one in the first place?

Every plan and supplier has a unique pricing structure, which can significantly alter the amount you spend for power each month. 

Dive into the EFL for each plan to find variances and price structures that may not be what you’re looking for.

At the same time, EFLs are there to protect you as a consumer from being surprised with a large charge at the end of the month.

The contract details for all plans are provided in the EFL to ensure transparency between you and the energy provider, so you know what kind of plan you’re getting. 

They also break down the various charges that can affect your monthly spending.

If you’re interested in renewable energy, EFLs can help you select plans that range from 5% renewable content to 100% renewable supplied energy while staying within your budget.

What exactly is an EFL?

An EFL is normally divided into three sections that outline the pricing structure for the plan, any disclosures made by the provider, and finally the provider’s contact information.

EFL - Electricity Facts Label
Sample Electricity Facts Label

Average Price per kWh: The first thing you’ll notice on an EFL is a chart showing the average price of electricity depending on the average monthly usage in kWh. 

It displays the average price per kWh charged if you use 500, 1000, or 2000 kWh per month.

Remember that this is only an example of what your payments may look like if you utilized those EXACT amounts of energy. 

The real expenses for each plan will vary depending on your monthly use.

Base Charge: The base charge is a cost that some companies will charge in addition to your monthly consumption. The energy provider will normally add a certain amount to your bill each month.

Most plans have a base charge of five to ten dollars, but you should keep a lookout for plans with higher base charges.

Energy Charge: The energy charge is the rate at which your energy provider bills you for your electricity usage. 

It does not take into account your usage levels and is essentially the baseline for what you would be charged for each kWh of electricity you use.

Bill/Usage Credits: Bill or usage credits are also included in the pricing part of EFLs. This tells you that an energy provider will reduce your payment by a particular amount if you use a certain number of kWh each month. 

This can be a wonderful deal for certain people, but keep in mind that if you don’t meet the usage criteria laid out in the EFL, you may be charged a much higher fee, which can lead to high bills.

Learn how to avoid high electricity bills in Texas.

TDU Delivery Charges: The last price section you should look at is the Transmission and Distribution Utility (TDU) charges. 

These will provide you with a fixed fee that will be applied to your monthly statement, as well as an additional cost per kWh of electricity used. TDU pricing in Texas is regulated and can only be altered twice a year.

Product Disclosure: The disclosure part informs you of the type of energy plan you are enrolling in.

A fixed-rate plan maintains the same rate for your energy usage throughout the length of the contract.

A variable-rate plan, on the other hand, means that your supplier can adjust your pricing each month.

Contract Term: Most suppliers offer plans for 12, 24, and 36 months, but you can find shorter durations if you look hard enough.

If you’re new to comparing Texas power and moving into a rental or an apartment, you might be asking if you need to match your electricity contract with your lease. 

You don’t have to match them together, and you can choose the electricity plan that’s suitable for you regardless of the contract duration.

Keep in mind that Texas law prohibits providers from charging you a termination fee if you move before the end of your contract and are not required to transfer your service.

Termination Fee: If you want to cancel your service before the end of your contract period, you may be charged a termination fee. 

They may appear to be large, intimidating sums, but in some situations, paying the termination charge and switching to another provider might actually save you money over the course of a year.

Price Changes: The price changes part of the disclosure is an important spot to pay attention to. 

This indicates whether or not your provider has the ability to adjust the monthly fee you pay. 

These adjustments typically reflect changes in TDU rates or administrative costs levied by the Electric Reliability Council of Texas (ERCOT).

These variations in your rates are documented so that providers can compensate for changes in their costs that are beyond their control.

Pre-Payment or Advance Payment: You’ll also see a section indicating whether or not your plan allows for prepayment or making payments in advance. Plans that allow you to prepay are few and far between, so look for one specifically if you wish to make advance payments.

Renewable Content Disclosure: The final piece of the disclosure you’ll see tells you how much, if any, of your energy originates from renewable sources. You’ll also see an estimate of the statewide average, which is roughly 25%, and how the plan you’re considering compares.

Getting in Touch: The final portion of an EFL contains all of the contact information for the service provider who is in charge of that plan. If you encounter any problems or have specific inquiries, you can contact them by email or phone during the given office hours.

How to Understand an EFL

Now that we’ve gone over the various areas of information on an EFL, you’re probably wondering where you should start looking and what factors to consider when comparing different electricity plans.

The simplest way to approach an EFL is to start with the pricing structure. 

This will give you a decent indication of whether you’re looking at a simple plan, one with a lowering pricing structure as your consumption increases, or one with a more intricate structure that you’ll want to investigate further.

If you know how much power you use each month, you should be able to quickly determine how different plans compare to what you are currently spending, or you may estimate your usage if you are moving into a new home or apartment.

Once you’ve determined whether a plan’s pricing structure is within your budget, read the disclosures to see if the contract duration matches your desired contract length. 

Remember that you are NOT required to match your contract term with your lease period.

If renewable energy is important to you, after you’ve reviewed the pricing, scroll down to the bottom of the disclosures to learn how much renewable energy that plan consumes. 

The average in Texas is roughly 25% renewable content, so you might be able to locate a plan at a lower cost that still contains some renewable energy.

Before you make a decision, the energy plans in our marketplace always list the EFL, so you know precisely what you’re getting.

Ready to find your best energy plan and rate?.

Frequently Asked Questions

What is an Electricity Facts Label

EFL - Electricity Facts Label

The Electricity Facts Label (EFL) is a legal disclosure mandated by the Public Utility Commission of Texas (PUCT) that must be included with all energy plans. Amongst other factors, the EFL displays the average price per kWh charged if you use 500, 1,000, or 2,000 kWh per month.

Where can I find the Electricity Facts Label?

The Electricity Facts Label comes with every energy plan in Texas. On ComparePower you can view it by viewing the Plan Details for any plan you choose in our marketplace. Your energy provider can also send you a copy of your current EFL upon request.

What is the cost of electricity outside of the advertised 500, 1000, or 2000 kWh in Texas?

The Electricity Facts Label only discloses the price you’ll pay for 500, 1000, or 2000 kWh. To get the price for any other usage value visit ComparePower.com — We fix the EFL in Texas by allowing you to shop energy plans for any usage or with your home’s specific annual usage profile. Fully transparent electricity shopping is available.

It's your turn to save on electricity.

ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

Energy Savings Articles

Understanding Your Electricity Bill

Every electricity consumer receives a monthly bill that details their energy company’s charges.

Most people, however, simply check the total amount at the bottom of their bill and accept the charge.

Your last bill may have surprised you and left you wondering what was charged.

This short guide will help you understand your energy bill and what you’re paying for.

Understanding the charges on your electricity bill will help you compare rates and save money on your next power bill.

Looking for Inconsistencies in Your Electric Bill

If your bill is higher than expected, there are a few places to look to find out why.

Average kWh: The first section to look at is the kWh of electricity used during your billing period.

Most providers will show you how much you used compared to last month, and some will show you how much you used last year.

Your high bill is likely due to increased usage caused by seasonal changes in weather.

Heating and cooling use a lot of electricity, so hotter and colder months mean higher bills.

Learn how to avoid high electricity bills.

Energy Charge: The rate you pay for electricity does not remain constant throughout your contract, but rather changes based on your usage. The electricity rate you are quoted is for specific usage.

Your plan probably shows you pay between 8 and 10 cents per kWh if you use 1,000 kWh during that billing period.

With some plans, the moment you use 1,001 kWh of electricity, your rate can double, and it can also change if you use less energy.

Plans with bill credits may also affect your electricity bill from month to month.

Some providers give you a discount if you use a certain amount of electricity each month.

If you have a bill credit plan and meet the usage threshold one month but not the next, you lose the discount, which can drastically change your energy bill total.

TDU Charge: If you have an unbundled bill from your provider, you can see those separate TDU charges and can compare them to previous bills to see if the prices have increased.

TDU charges can change, but they are subject to regulatory approval and can only change twice per year.

Plan: Lastly, look for changes in the name of your plan.

If your plan name changed, your provider may have switched you to another plan.

Your provider may have sent you a renewal notice that seemed like your plan would remain unchanged.

Once, your contract expires providers will generally raise your rate under the guise of a renewal offer. But this is in fact a completely new contract and rate.

Learn how to compare your provider’s renewal offer.

If you let your plan expire, you could also be placed on a “hold over” rate.

Your electricity provider will then change your rate month to month, resulting in significantly higher costs as demand increases.

Again, if you have an unusually high bill, look at how much electricity you used and how much you were charged for it to rule out any mistakes in billing.

Lower your electric bill with your home's usage and save big.

What’s on Your Texas Electric Bill?

The information on your electricity/energy bill is generally broken down into five main sections: account information, bill summary, a breakdown of your energy consumption, your current charges, and finally the price of the electricity you used.

Account information: This shows you the key details of your account. Your account number will be displayed, which can be used to help the provider find your information quickly if you run into any issues.

You should also find an ESI ID number, which is your electronic service identifier and is connected directly to your meter.

Bill Summary: Here you will find an overview of the current charges that you will need to pay. Most providers will break these down into smaller charges that show the energy cost, supply fees, market cost, utility charges, and taxes.

Energy consumption: this section shows your electricity usage throughout the billing cycle. Generally, you will see a comparison of the current month to the last month, which will be shown as kilowatt-hours (kWh) used.

Sample Electricity Bill

Front Page – Sample Electricity Bill
how to read electricity bill
Back Page – Sample Electricity Bill

How a Kilowatt-Hour is Calculated

Each month, your energy provider tracks the number of kilowatt-hours that you use and then charges you for that usage.

The amount of energy that you use fluctuates through different times of the year, which you will see reflected on your bill.

What exactly is a kilowatt-hour?

A kWh is the standard unit of measurement for electricity usage. It is a combination of both the speed at which something uses power (wattage) and the amount of time that electricity is consumed at that speed.

To calculate the kWh usage you might see on your bill, you can multiply the wattage of any appliance you have (most appliances have a label that shows you the wattage) by the number of hours that you use that appliance during the day.

So let’s use some numbers as a concrete example. Take your 1,000-watt microwave and say you got a little carried away and ran it for five hours.

That would put you at 5,000 watts of energy used, divided by 1,000, and just like that, you have used five kWh of electricity.

Now, this is an extreme example of electricity usage, so let’s put one kWh into real examples:

What can you power with 1 kWh?

  • Dishwasher: 100 minutes
  • Washing machine: 100 minutes
  • Desktop computer: 5 hours
  • 1500-Watt Space Heater: 40 minutes
  • 200-Watt Oven: 30 minutes

Find a lower rate plan and save money on your electric bill.

Charges on Your Electricity Bill

Looking at your bill you should see the electrical charges broken down into what are called delivery and energy charges.

Delivery Charges: Delivery charges cover the transportation of energy to your home from the company that generated it.

Energy Charges: Supply charges are the amount of electricity that you use and the rate you pay for that electricity.

Here it is good to make note of the two different types of bills that you may see from your provider. All plans will use the same transmission and distribution utility (TDU) charges, but your provider may show these at a bundled rate or an unbundled rate.

Bundled bills will show one combined rate for your electricity usage that lumps the TDUs and your supply costs together.

Unbundled bills will show each one of these as separate charges and give you some extra information to consider when looking at your total payment.

Frequently Asked Questions

What is the average electric bill in Texas?

Texas had an average retail price of 11.56 c/kWh in 2021, according to the U.S. Energy Information Administration. If the average household uses 1,000 kWh per month, at 11.56 cents per kWh, the average electricity bill would be around $115.60

How is electricity billed in Texas?

In Texas, electricity consumers are billed by their electricity providers. Customers are charged for both the electricity used (energy charge) and the delivery of the electricity (utility charge).

How do I read my electric bill?

You need to check total usage and then the breakdown of the costs being charged. We’ll show you here how to calculate the prices you paid and verify if it’s correct.


ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

How electricity contract renewals work in Texas

You do not have to renew your energy contract with your electricity provider.

You can choose another provider and switch to a cheaper rate. We’ll show you how in this short guide.

If your electricity contract is about to expire, shop the market before renewing your contract.

Rates usually go up at renewal time. Providers offer low introductory rates to attract and acquire new customers.

Once you sign up and establish service many providers count on the fact that you won’t bother switching providers at renewal time to raise your rate so it is more profitable for them.

You may be leaving money on the table by accepting your provider’s renewal offer without comparing competing plans and rates. 

It’s a great time to shop on ComparePower. The average price for electricity in Texas in 2021 was $0.12 per kilowatt-hour (kWh).

You have to renew or switch providers

It’s important to understand that you cannot continue with the same contract or price and must either accept the new offer (and a new contract) or switch to a different provider. 

While you can turn off the lights and replace all your bulbs and appliances with energy-efficient ones, the fastest way to save money is by finding a lower rate.

We’ll show you how to compare your provider’s renewal offer to competing energy plans based on your home’s annual historical electricity usage profile.

Comparing energy plans with your home’s historical usage is the best way to beat the gimmicks and save money on your electricity bill month after month.

Shopping rates for your business? Click here to compare business energy plans and rates from over 30 electricity companies in Texas.

Renewing could end up costing you more

The choice is yours in Texas. You can renew, switch providers, or do nothing at all.

Shopping for electricity in Texas can be confusing. Choosing the right electricity plan can be difficult, especially if you don’t know or remember how.

We get it. Nothing is more frustrating than trying to solve a problem you don’t understand. It’s like playing a game you don’t know the rules of.

It’s ok if you don’t know the rules. We’ll help you with that. Our mission is to help all Texans with the game of electricity.

If you’re reading this it’s likely that you haven’t thought about electricity in a year or more, so if you feel confused or frustrated, you’re not alone. We’re here to help you beat them at their own game.

Before you give up and accept your provider’s renewal offer, keep in mind that the offer is not a continuation of service at the same price.

You will not be paying the same rate by renewing with your provider. The renewal offer is a completely new contract with a new rate.

Don’t overpay for electricity. Join the millions of Texans who switch and save on their electricity bills year after year with ComparePower.

When your contract is nearing its end, we’ll give you all the details and a step-by-step plan to find the best electricity plan and rate for your home.

Let’s start by breaking down your provider’s renewal offer. 

Instantly compare competing Texas electricity companies.

Your provider’s renewal offer is rarely your best option.

When your contract is coming to an end, your electricity provider will send you a renewal offer with the details of your new contract as well as your new electricity rate.

Texas law requires providers to send you a renewal notice at least 30 days before your contract expires.

However, you are likely to start getting phone calls and renewal offers up to 60 days, sometimes three months before your contract expires.  

It is generally not a good idea to renew your contract three or six months in advance.

Early renewal offers rarely have lower rates than what you are paying now. 

It is impossible to predict the rate of electricity in the future. Market rates may be lower closer to the expiration of your contract. 

Schedule a reminder here instead and we’ll remind you when it’s time to shop and switch.

You have 14 days before the end of your contract to switch providers without penalty in Texas.

The two-week window is a good time to look for deals and compare rates. 

Electricity companies are not on your side. Like any company, electric retailers operate on profit.

If you pay more for electricity, they will take it. Therefore, pay attention to the details of your renewal offer when your contract is about to expire. 

If you don’t shop around, you are stuck with a handful of energy plans offered by one company whose job is to take as much money from you as possible rather than provide you with the lowest rate.

There is no guarantee of savings. When you renew your energy contract, you do not keep the same rate. It is not an extension of your contract.

Even if your provider offers you the same rate on your renewal, competitive market rates might be even lower. You won’t know unless you take some time to shop and compare plans with your home’s usage history.

How do you even compare your renewal offer? 

Generally speaking, there is no easy way to compare your provider’s renewal offer with market prices. 

Renewal offers and all electricity plans in Texas are required to advertise prices for three usage levels: 500, 1000, and 2000 kWh.

The price for usage outside of those three reference points is unknown to you. You won’t pay the advertised rate unless you consume exactly 500, 1000, or 2000 kWh per month.

When you shop for a plan based on the advertised prices for 500, 1000, or 2000 kWh, you may choose a plan that is not ideal for your home’s complete annual energy usage pattern.

Seasonal weather influences how much energy you use each month. During the winter and summer months, you will use more kWh because the temperature outside requires more heating or cooling.

Due to the seasonal differences in kWh usage, it is impossible to compare plans based on the three advertised usage points alone.

A great way to overpay on electricity is to shop at the advertised price; this strategy has been used by Texas electricity companies since the state deregulated its energy market.

Find out what you’ll really pay, not what is advertised. 

You only pay the advertised price if you use exactly the same amount of electricity as advertised. 

Electricity is the same. No matter where you buy it from, it’s the same energy. So why pay more for it when you can get it for less? 

Avoid overpaying. There is no need to give more of your hard-earned money to the electric company when you can beat them at their own game.

Follow this guide and you’ll be saving money on your electricity bill year after year. 

Switch to savings with your zip code.

How to compare your provider’s renewal offer

First, find your historical usage history.  You can access your historical usage by logging into your provider’s account dashboard.

Each provider has a different dashboard, but they all provide a way to look at and download your usage online.

Ideally, you should get at least 12 months of usage or as many months as you have usage for. 

Use the historical usage calculator below to enter your historical usage for each month.

After entering your usage, click on Compare Rates, then enter your zip code.

Your home’s specific usage profile should be entered now so that the next screen looks like the one below (except with your home’s specific annual usage profile).

Electricity Usage Calculator

Now you can review the total annual cost of the plans on the ComparePower marketplace based on 12 months of your home’s historical usage profile. 

This is how much you will pay for your electricity for an entire year of usage were you to choose any of the plans on ComparePower. 

To find out if you are getting a better deal you will need to look up your electricity billing statements and add up the amounts for the past 12 months. 

You should switch if the total annual cost you paid your provider exceeds the lowest cost plan on ComparePower. 

Click ‘Check Availability’ and you’ll be on your way to a cheaper energy plan within five minutes. Confident you’re getting a great deal and back to your day.

We’ll even remind you when your contract is about to expire so you can come back and save year after year.

Compare the best energy plans in Texas.

The easiest way to save is to switch

The cheapest prices are only available to new customers. When you enrolled with your current provider, you may have been lured by a low introductory rate that is only available to new customers.

When you are nearing the end of your current contract, switching electricity providers to a plan with a lower rate is your best bet for saving money on your next power bill.

Do your homework. Texas electricity rates can change frequently, so do your research before enrolling in a plan. 

Compare energy plans and prices. If you’re looking for the lowest electric rates to save money, take your time to review and compare prices from competing providers. 

For maximum savings, shop with your home’s usage history and our historical usage calculator.

Comparing energy plans in Texas based on your usage history is the best way to save money.

Do not let your contract lapse. Inaction is by far the most costly. As soon as your contract expires, you’re put on a holdover rate, one that fluctuates based on market conditions, causing unexpectedly high electricity bills.

By letting your contract expire without taking action, you may end up overpaying for electricity. Schedule a reminder and we’ll notify you when it’s time to switch and save.

If your electricity contract expires, your power will not go out. You will continue to receive power from your current provider, but at a high rate called a holdover rate.

Holdover rates are variable market rates and are expensive and unpredictable. The majority of Texas consumers choose a fixed-rate plan.

You are entering into a legal contract. Remember that a contract, whether you opt to renew or switch, is a legal contract between you and your energy retailer. 

You can change your mind. You can cancel an electricity contract with no penalty within 3 days in Texas by contacting the provider directly. 

Cancellations are possible at any time, but there may be an early termination fee if you switch providers before your term is due. Be sure to read your contract and understand the cancellation rules.

Still confused about why this is so important?

This short 2-minute video will show you how to find your best plan on ComparePower.

Other considerations:

In addition to the price, consider features that may be important to you when comparing different electricity plans. Here are some additional considerations when you are shopping for a new energy plan.

Contract Term: Most electricity contracts are 6-12-24 months. The length of your lease does not have to match the length of your electricity contract. Because energy contracts in Texas can be canceled when moving, you can pick the term length that offers the best price.

Rate type: Most Texas consumers prefer a predictable, fixed-rate electricity plan over a variable rate.

Features: Some plans include features like 100% Green, Free Nights & Weekends, or a free Nest Thermostat. 

Price: The best electricity plan or rate is often determined by the price per kWh and your home’s kWh usage. Learn how to switch energy providers in Texas.

Deposits: Whether a deposit is required is determined by your credit score and utility payment history. There might not be a deposit required from some ComparePower providers, so simply pick a plan and enroll for service. If a deposit is required, we check our marketplace to see if other providers won’t require one from you. You can easily see the deposit requirements for all providers with just one order. You can save a lot of time and frustration finding a no-deposit plan on ComparePower. Want to avoid deposits and credit checks altogether? Go Prepaid here.

Learn how to get no-deposit lights in Texas.

To recap, switching is easy—10 minutes of your time can save you hundreds of dollars a year on your electric bill. You do not even have to call and cancel service with your existing provider. Switch on ComparePower and we’ll handle it all for you.

Ready to save time and money on your electricity bill?

Frequently Asked Questions

Who has the best energy rates in Texas?

Texas has no single electricity provider known for the most competitive rates. In Texas, the price of your energy depends on the amount of energy that you use each month. To find a low rate and avoid gimmicks, shop electricity plans with your home’s annual usage profile. Enter your home’s historical usage on ComparePower.com and you’ll be on your way to savings in minutes.

What is the best month to renew electricity?

In general, the cheapest times of the year for electricity are during the spring and fall months when there is less demand for electricity. Do not let your contract expire before switching providers. Doing so can be costly. ComparePower.com can help you find the best rate with your home’s annual usage profile. It is the best way to shop for electricity in Texas if saving time and money are important.

What is a good rate for electricity in Texas?

Texans paid an average of 12.56 cents per kilowatt-hour in 2021. You can find rates on ComparePower that are much less than the Texas average when you shop with your home’s historical usage profile. The best way to shop energy plans and save money is by using your historical usage profile on ComparePower.com

When can you switch electricity providers in Texas without penalty?

In Texas, you have 14 days before your contract expiration date to shop the market and switch to a new provider without penalty.

Will my new energy provider cancel my old contract?

Yes, make sure you’re within your 14-day grace period to avoid any early termination penalties, then simply enroll for electricity service with a new provider on ComparePower.com and we’ll handle the break-up call for you.

ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

Energy Savings Articles

Say bye-bye to surprise electricity bills

In Texas, you have the power to choose an electricity plan that fits your lifestyle and a rate that fits your budget.

If you’re facing a high electric bill you’re in the right place. 

Here you will learn why your bill spiked, how you can get it back under control, and how to save on your bill month after month without any surprises.

If you are facing a hefty electricity bill one of the best ways to lower your bill is to switch your electric provider with your home’s annual historical usage. While that might sound difficult, it is not.

You can do it with ComparePower in minutes. We make switching to savings easy for millions of Texans just like you every single year.

Win the game of electricity

Texas electric companies have long been known to game the system in their favor with gimmicky plans and rates. 

Our mission is to help every Texan win the game of electricity. If you’re in Texas that includes you.

To find the best electric plan, you’ll need some specialized knowledge, which we’ll arm you with. 

If you don’t understand how this all works yet, it’s okay. We work every day to lower Texans’ electric bills. 

For the past decade, we’ve been helping millions of Texans reduce their electricity bills. 

It is easier than you think to find the right plan for your home. 

We’ll show you how to save both time and money on your electric bill year after year with tips that go beyond simply turning off your lights when you leave the house. 

By the end of this short post, you will know the most common reasons for higher than normal electric bills, what you can do about it, and how to prevent future surprises.

Find out if you’re overpaying

The average retail price for residential electricity in Texas is $0.12 per kilowatt-hour (kWh) according to the U.S. Energy Information Administration.

Find the average price you paid on your electricity bill. If it is higher than $0.12 per kilowatt-hour you are paying more than the average Texan. 

Why am I overpaying?

You may be paying more than necessary because the plan you picked is not ideal for your home’s usage. 

Even if you are paying under the Texas average rate you may still be leaving money on the table. 

How can you find out? Do a quick rate check.

Start by entering your zip code on this page then select “All Plans” on the next screen when you are asked, “How would you like to shop?”

This will take you directly to the plans listing marketplace.

From there simply enter your previous month’s usage. Your monthly usage is on your electricity bill in kilowatt-hours (kWh). 

Find your usage on your bill and enter the kWh usage from your bill in the “Your Home” tab on ComparePower (see screenshot for clarity)

Once you have entered your usage, scroll down to the first plan listing. For our example let’s assume your usage last month was 1,524 kWh. 

Plans are sorted from lowest to highest price. This is a great way to spot-check the rate on your electricity bill with what’s available on the market to see if you are overpaying.

In the example below, the electricity plan with the lowest rate is the Power of Credit 12 by New Power Texas with a rate of 11.2 cents per kWh for exactly 1,524 kWh.

If the average kWh rate on your bill is higher than the rate you see on ComparePower it may be time to switch providers. 

Pro Tip: Make sure you are not already in a contract with your provider before you switch.

Switching before your contract expires can lead to an early termination fee. 

In Texas, you have a 14-day grace period to shop plans and rates and switch providers without penalty.

Stuck in a contract?

If you are in a contract with your electricity provider you will need to assess whether switching will save you money in the long run (even if you were to pay the early termination fee).

To find out you will need to shop plans by entering 12 months of usage history.

You can find your historical usage by logging into your provider’s account dashboard. 

Every provider has a different-looking dashboard but they all have an area where you can view and download your usage month by month. 

Getting as many months of usage as you can with a full 12 months is the most ideal. 

Next, enter your historical usage for each month on ComparePower in the historical usage calculator. 

kWh Usage Pricing Calculator

Input as many months of usage history as you can gather, then click “Compare Rates”.

If you can’t find your usage history, you can still compare rates by home size by entering just your zip code at the top of this page.

Once you have entered your usage click on Compare Rates and enter your zip code.

The next screen should look like this below, except with your home’s specific usage profile entered in the calculator.

Next, take a look at the total annual cost of the plans based on 12 months of historical usage. 

This is the total amount you will pay for the electricity for an entire year of service based on your home’s exact historical usage profile. 

Next, add up how much you have paid your electricity company for the same amount of usage. 

You will need to find all your electricity billing statements and add the amounts to see what the plan you are currently on is costing you for an entire year of service. 

You can find all your past billing statements by logging into your provider’s online portal. 

Now add your early termination fee to that amount. 

If the total is more than that total annual cost on ComparePower, it is time to switch. 

Simply click on check availability and you’ll be on your way to a cheaper rate plan in 5 minutes. 

Getting out of a contract. 

To get out of an electricity contract without an early termination fee, you must move out. 

The scenario is common when couples divorce, when a household member is called to military service, or when a roommate moves out.

If you live in a household with two or more people, you can cancel your electricity contract and have someone else take over in their name with another provider. 

Another member of your household can then place a move-in order on ComparePower for the same address with a new provider.  Make sure to select “move-in” as the order type at checkout. 

Call your electric provider to request that service be turned off and canceled by a certain date due to you moving out. This is how you prevent interruption of service and get the bill out of your name.

Some providers may require proof such as a forwarding address for your last bill but you are not required to provide one.

There will be a new provider servicing your home and the electricity bill will no longer be in your name but in the name of the other member of the household. 

This is not meant as a way to avoid paying your bills. You should always pay your electric bill to remain in good standing with the electric company and enjoy low rates without upfront deposits. 

Switching providers without paying your bill can damage your credit and eventually cost you a higher rate or an upfront deposit. 

If you take all the steps above and decide that you would rather wait to switch when your contract is near its expiration, you can schedule a reminder here. 

Simply enter your email, zip code, and contract end date and we’ll send you a reminder email when it’s time to switch. 

Remember that the electricity companies are not your friend. They want to make as much money as possible from you and are not afraid of using any sneaky tactics. 

If you think that you received a high bill, take the time to check into your plan details and make sure you’re not on a holdover rate or renewal that isn’t right for you.

kWh Usage Pricing Calculator Video

Still confused about why this is so important? This short 2-minute video will show you how to find your best plan on ComparePower.

Factors contributing to high electricity bills

Increases in your electricity bill can be caused by a variety of factors. These are the most common reasons for a high electricity bill.

Your energy usage changed

Of all the reasons your bill may have spiked an increase in your monthly usage is likely the most common.

A spike in your energy usage may result in a higher bill. For example, if you have a full house during the holidays and school vacations you’ll use more energy.

Seasonality can also cause your energy usage to be higher than usual. A hot summer and a cold winter in Texas can cause usage spikes.

Take a look at your monthly usage. Log in to your electricity provider account and check your usage reports. 

Most Texas providers have a dashboard where you can review your usage month by month.

If you have a smart meter — most Texas homes do — then you can check your usage in 15-minute intervals on Smart Meter Texas.

It is unlikely that your smart meter read is incorrect, but you can validate the reading by reviewing your usage on Smart Meter Texas.

Smart Meter Texas, endorsed by the Texas Public Utility Commission, stores daily, monthly, and 15-minute interval energy data collected by smart electric meters (commonly referred to as “smart meters”) and provides secure access to that data to Texas residents.

You can rule out errors in your electricity meter reading if the usage on your bill matches the usage on Smart Meter Texas.

You have a faulty appliance.

Unreliable appliances, such as a leaking water heater, can lead to a high electric bill.

You should perform a pre-season cooling-system checkup in the spring, and a heating-system checkup in the fall, to avoid system failure and higher-than-average bills.

You recently moved into a new home.

If you recently moved into a new home and transferred your electricity service, your energy consumption may have changed, resulting in higher bills.

Similarly, if you recently moved into a new home and chose a new provider plan, you may have picked a plan that does not accommodate your new home’s energy usage.

You recently switched to a different provider.

If you recently switched your provider you may have chosen a new plan that is not optimal for your home’s usage profile.

Learn how to shop for the right plan with your home’s usage profile.

You recently renewed your electricity plan.

The renewal offer from your provider is rarely your best option in terms of price. 

Electricity providers send out renewal offers prior to the end of your contract term. 

It is important to understand that a renewal offer is a new contract with a new rate, not a continuation of your expiring contract. 

The new contract (your renewal offer) includes the details of your new electricity rate, which many times is higher than what you’ve been paying. 

In Texas, providers are required to send renewal notices at least 30 days before a contract expires, but you can expect to begin receiving renewal offers as early as 60 days and sometimes three months prior to your contract’s expiration.

Renewing your contract three or six months in advance is seldom a wise decision. Early renewal offers rarely have rates that are lower than what you currently pay. 

Since it is impossible to predict the rate of electricity in the future, you might find that market rates are lower closer to your contract’s expiration date. 

In Texas, you can change providers without penalty up to 14 days before the end of your contract. You can use this time to compare rates and shop around. 

Keep in mind that electricity companies are not on your side. After all, their main objective is to make money. If you pay them more for electricity, they will take it. When your contract expires, pay close attention to the details of your renewal offer. 

Companies can only offer you what they have at the moment. Their job is to extract as much money as they can from you, not to get you the best deal. 

If you want to save money on your energy bill, compare your provider’s renewal offer with competitors’ plans and rates. 

The best way to save money is to shop and compare plans based on your home’s unique usage profile. Ten minutes can save you hundreds of dollars. 

Learn how to use your home’s usage history to shop for the right plan.

Your contract has expired. 

When your electricity contract expires, and you don’t renew with your provider or switch to another, you are placed on a variable “holdover” rate. 

Holdover rates are unpredictable as they can vary with market conditions, therefore if your contract has expired it is time to act. 

The best way to save is to shop with your home’s unique usage profile on ComparePower and switch providers. 

Switching providers is easy and only takes a few minutes, but can save you hundreds of dollars a year. 

Learn how to switch electricity providers in Texas.

You have a tiered-rate energy plan or one with usage credits.

A tiered rate electricity plan discloses the price you’ll pay for exactly 500, 1,000, and 2,000 kWh of usage per month. It is not a range. 

If you’re not careful, using a kilowatt above or below those usage points can lead to dramatic changes in cost.

After Texas deregulated its energy sector in the early 2000s, the Public Utility Commission of Texas (PUCT) requires retail electricity providers to disclose rates at three usage levels: 500, 1,000, and 2,000 kilowatt-hours (kWh).

This enabled electricity providers to advertise incredibly low rates at exactly 500, 1000, or 2000 kWh of usage. 

Known as teaser rates, these cheap and eye-catching rates entice shoppers with prices that are too good to be true.

The problem is almost no one uses exactly 500, 1000, or 2000 kWh each month.

While It’s possible to consume, on average, 1000 kWh of electricity each month, your usage will fluctuate dramatically from one month to the next month, especially during summer in Texas. 

There are tiered rate plans in which the rate per kilowatt-hour can increase as much as 20 cents or more if customers exceed 1,000 kWh per month – even by one kilowatt.

Consequently, you will likely find yourself paying much more than you anticipated when you choose an energy plan with a tiered rate structure.

How can you tell if a plan has a tiered-rate structure and if it’s right for your home?

There are various types of tiered energy rates, including flat fees and credits based on specific kWh usage or a combination.

To determine if a rate seems too good to be true, look at the plan’s electricity facts label (EFL) and carefully review it.

Bill credits are another way electricity companies advertise cheap rates. 

Energy companies trick consumers into thinking they are getting a super-low rate by including a steep discount (called a usage credit) at exactly 500, 1000, or 2000 kWh of usage.

Like tiered-rate plans, you only get the discount at a specific usage point or range. For example, if you use between 1,000 – 2,000 kWh per month. 

Anything outside of the specified rate of the range will cost you more. 

Tiered or usage credit plans can work to your advantage. A tiered or usage credit plan might be right for you when you shop and compare plans with your home’s historical usage profile. 

You won’t have to worry about tiers and credits on ComparePower. Simply enter your usage history and we’ll instantly do the math for you to calculate your best plan and rate. No tricks or gimmicks. 

Compare rates, make an informed decision, and don't overpay.

How can I reduce my electric bill?

The best way to reduce your electricity bill is to make sure that your energy plan is ideal for the usage profile of your home. Enter the historical usage of your home on ComparePower.com to find the right plan for your home in minutes.

What is a normal electric bill in Texas?

The average retail price of residential electricity in Texas is $0.12 c/kWh cents per kWh according to the U.S. Energy Information Administration. If the typical Texan uses 1,000 kWh per month on average, at a rate of 12 cents per kWh, the electric bill would be around $120.


ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

For same-day electricity in Texas, select a provider from the list below and enroll by the deadline.

Same-day electricity service can be a great option for those who need power right away. We’ll help you get power on today at a great price.

In a rush? Start with your zip code to compare plans and rates in your area. Pick a plan. Choose today as your service start date at checkout and get instant enrollment confirmation. It takes 5 minutes to enroll online.

Enroll today! Fixed-rate plans are as low as $0.10 per kilowatt-hour (kWh).

Prefer to speak to someone? Call any provider phone number listed below to enroll by phone.

Same-Day Electricity Companies in Texas

Texas cities including Dallas, Fort Worth, Houston Metro, Corpus Christi, and many others, can receive same-day service from these electricity providers.

CompanyDeadlineAvailablePhone
4Change Energy4 pm Mon-Sat855-550-6663
Amigo Energy2 pmMon-Fri866-526-7192
Cirro Energy5 pm Mon-Sat844-417-7179
Constellation2 pmMon-Fri855-798-2889
Discount Power5 pm Mon-Sat855-236-1309
Frontier Utilities2 pm Mon-Sat866-763-5084
Gexa Energy2 pm Mon-Sat855-639-8210
Green Mountain Energy5 pm Mon-Sat844-854-2257
Just Energy2 pmMon-Fri866-586-3564
New Power2 pmMon-Fri866-448-2720
Payless Power 6 pmMon-Sat855-639-8210
Pulse Power2 pmMon-Sat888-853-4522
Reliant5 pmMon-Sat855-887-2194
Tara Energy2 pmMon-Fri866-217-5179
TXU Energy6 pmMon-Sat844-359-7999
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.

Compare rates today and get power when you need it.

Same-Day Electricity For Homeowners

The moving process is stressful, and there are a lot of things to remember. Let us help you choose an electricity provider so you can cross electricity off your list. 

If you’re moving into a new home, you can start electricity service right away. To find providers in your area, enter your zip code on this page. 

Once you’ve found a provider, you can enroll online in 5 minutes, or call and a representative will help you choose a plan that suits your needs.

Same-Day Electricity For Apartments

Electricity must be in your name before you can move into an apartment. If you are reading this chances are you are moving into your apartment today and you need an electricity account number to get your keys.  

Get your power on in your name right now so you can get proof of service for your leasing office and your keys in time for your movers. 

Enter your zip code on this page to find providers in your area. 

In just five minutes, you can enroll online right here on ComparePower with the provider you’ve chosen or call and a representative can help you pick the best plan for your needs.

Learn more about choosing the right apartment electricity plan for you.

How To Choose the Best Rate

Choosing the right rate will depend on the consumption profile of your home over the past year if you are switching providers

This information can be found on your electric provider’s website. Note how many kilowatt-hours you used in the past year month by month for as many months as possible.

After you have your home’s usage data, you can enter it into the ComparePower historical usage calculator. 

When comparing energy plans based on your annual house usage, you can compare apples to apples. 

You can also factor in usage fluctuations that occur throughout the year due to seasonality and other gimmicks that Texas energy companies use.

Learn how to switch electricity providers in Texas.

Start with your zip code on this page and select “Help Me Choose” to get started.

If you are moving into a new home you need to know the square footage of your new home. 

This will help you estimate its average kWh usage. 

Pro tip: If the home isn’t brand new, the previous owner may have information about its kWh usage. 

In that case, you can use the historical usage calculator to determine the best plan for your home. It’s the best way to save time and money.

You may follow the process outlined above for switching if you have been able to collect new home usage for the past 12 months.

Other Factors To Consider

Consumers in competitive areas of Texas can choose from several retail electric providers (REPs). 

Consumers should always shop for plans, not specific electricity companies.

Electricity Providers in Texas determine the kWh rate you pay and they bill you. That’s it.

The reliability of electric service in Texas relies on the utility company, so the provider that you choose will not affect reliability.

Providers can offer fixed rates, in which prices will not change during the term, variable rates, in which there is no contract and the rate varies according to market conditions, or index plans, in which prices are changed according to a formula tied to a publicly available index.

Most Texas consumers choose fixed-rate electricity plans. 

Prefer to avoid credit checks altogether? Then go prepaid. Several prepaid electric companies offer prepaid plans in which the electric service is paid in advance.

There are some providers that offer time-of-use energy plans, which vary based on when the service is used during the day or night. An example would be plans that offer free nights or free weekends.

The most common contract terms are 6, 12, and 24 months. Look for odd-numbered contracts in the spring and winter. Rates may be lower, but the new renewal date may move to a period when rates are higher, like midsummer in Texas.

Same-Day No Deposit Lights

In the case of a deposit, you will be required to pay it prior to the start of services. 

Learn how to get no-deposit lights.

Same-Day Prepaid Electricity

Avoid deposits and credit checks with prepaid electricity. There is an upfront payment for prepaid companies, but the amount is applied to your electricity usage. 

Get Green Energy Today

You can get 100%  green and environmentally friendly energy right here on ComparePower.

Start with your zip code on this page. Select Help Me Choose to filter out any plans that aren’t green. It’s that easy.

Find the best green energy providers, plans, & rates in Texas.

Same-Day Service Electricity Rates

Plan Name Plan Length Rate
TriEagle Energy - Eagle 1212 months10.0¢ / kWh
TriEagle Energy - Eagle 2424 months9.8¢ / kWh
TriEagle Energy - Eagle 3636 months9.6¢ / kWh
TriEagle Energy - Green Eagle 1212 months10.3¢ / kWh
TriEagle Energy - Green Eagle 2424 months10.1¢ / kWh
TriEagle Energy - Green Eagle 3636 months10.0¢ / kWh
Champion Energy - Champ Saver-1212 months10.4¢ / kWh
Champion Energy - Champ Saver-2424 months10.2¢ / kWh
Champion Energy - Champ Saver-3636 months10.1¢ / kWh
Champion Energy - Champ Silver-2424 months10.1¢ / kWh
First Choice Power - You Got This"! 2424 months12.9¢ / kWh
First Choice Power - You Got This"! After Hours 1212 months15.6¢ / kWh
Cirro Energy - Smart Lock 24 Online24 months18.7¢ / kWh
Cirro Energy - Smart Lock Saver 3636 months16.7¢ / kWh
Cirro Energy - Smart Saver 1515 months20.1¢ / kWh
Cirro Energy - Smart Value 12 Online12 months18.6¢ / kWh
Cirro Energy - Smart Saver 1818 months19.1¢ / kWh
Cirro Energy - Smart Secure 1212 months19.9¢ / kWh
Discount Power - Value Plus 1212 months19.7¢ / kWh
Discount Power - Value Plus 1818 months18.1¢ / kWh
Discount Power - Value Plus 2424 months17.1¢ / kWh
Discount Power - Value Plus 3636 months15.7¢ / kWh
4Change Energy - Maxx Saver Select 1212 months14.9¢ / kWh
4Change Energy - Maxx Saver Select 2424 months13.7¢ / kWh
4Change Energy - Cash Money 1212 months16.9¢ / kWh
4Change Energy - One Rate 1212 months18.5¢ / kWh
Green Mountain - Pollution Free e-Plus 24 Preferred24 months19.7¢ / kWh
Green Mountain - Pollution Free e-Plus 18 Preferred18 months21.1¢ / kWh
Green Mountain - Go Local Solar 12 Preferred12 months22.7¢ / kWh
Payless Power - Easy Choice1 months19.7¢ / kWh
Payless Power - Premier 1212 months19.2¢ / kWh
Amigo Energy - Amigo Web Plan 1212 months17.9¢ / kWh
Amigo Energy - Amigo Web Plan 2424 months15.9¢ / kWh
Amigo Energy - Nights Free Plan 1212 months19.5¢ / kWh
Just Energy - Simple Choice 1212 months18.5¢ / kWh
Just Energy - Simple Choice 2424 months16.5¢ / kWh
Just Energy - Simple Choice 3636 months15.5¢ / kWh
Just Energy - Just Assured 1212 months18.5¢ / kWh
Just Energy - Just Assured 2424 months16.5¢ / kWh
Just Energy - Just Assured 3636 months15.5¢ / kWh
Just Energy - 100% Green Nights Free Plan 1212 months19.9¢ / kWh
Just Energy - Nights Free Plan 1212 months19.9¢ / kWh
Tara Energy - Tara Web 1212 months17.9¢ / kWh
Tara Energy - Tara Web 2424 months15.9¢ / kWh
Tara Energy - Nights Free Plan 1212 months19.5¢ / kWh
TXU Energy - Clear Deal 2424 months14.9¢ / kWh
TXU Energy - Flex Forward1 months17.5¢ / kWh
TXU Energy - Free Nights & Solar Days 1212 months17.9¢ / kWh
TXU Energy - Saver's Discount 2424 months21.2¢ / kWh
TXU Energy - Season Pass 1212 months17.9¢ / kWh
TXU Energy - Ultimate Summer Pass 1212 months17.9¢ / kWh
Constellation - 12 Month (No Min Usage Fee)12 months19.9¢ / kWh
Constellation - 12 Month Usage Bill Credit12 months18.4¢ / kWh
Constellation - 36 Month Usage Bill Credit36 months14.9¢ / kWh
Reliant - Basic Power 20 plan20 months19.1¢ / kWh
Reliant - Basic Power 24 plan24 months18.7¢ / kWh
Reliant - Basic Power 36 plan36 months16.7¢ / kWh
Reliant - Conservation 20 plan20 months18.9¢ / kWh
Reliant - Conservation 24 plan24 months18.5¢ / kWh
Reliant - Truly Free Nights 100% Solar 24 plan24 months19.7¢ / kWh
Reliant - Truly Free Weekends 100% Solar 24 plan24 months19.7¢ / kWh
Direct Energy - Live Brighter 1K+ 2424 months17.7¢ / kWh
Direct Energy - Live Brighter 1K+ 3636 months16.7¢ / kWh
Direct Energy - Live Brighter 3636 months18.4¢ / kWh
Direct Energy - Live Brighter Lite 1818 months18.2¢ / kWh
Direct Energy - Live Brighter Lite 2424 months17.6¢ / kWh
Pulse Power - Texas Fixed 1212 months20.0¢ / kWh
Pulse Power - Texas Fixed 2424 months16.9¢ / kWh
Pulse Power - Texas Fixed 3636 months15.4¢ / kWh
Pulse Power - Texas Green 1212 months20.5¢ / kWh
Pulse Power - Texas Green 2424 months17.4¢ / kWh
Pulse Power - Texas Green 3636 months15.9¢ / kWh
New Power - Power of Credit 1212 months15.6¢ / kWh
New Power - Power of Credit 2424 months14.2¢ / kWh
New Power - Power of Credit 3636 months13.8¢ / kWh
New Power - Power of One 1212 months23.6¢ / kWh
New Power - Power of One 2424 months23.8¢ / kWh
New Power - Power of One 3636 months24.0¢ / kWh
Frontier Utilities - Beat the Heat 1212 months14.9¢ / kWh
Frontier Utilities - Frontier Super Value 1212 months13.7¢ / kWh
Frontier Utilities - Frontier Max 1212 months20.2¢ / kWh
Frontier Utilities - Frontier NHF 12+12 months18.0¢ / kWh
Gexa Energy - Gexa Energy Saver 2424 months16.6¢ / kWh
Gexa Energy - Gexa Saver 1212 months14.1¢ / kWh
Gexa Energy - Gexa Saver Advantage 1212 months16.9¢ / kWh
Gexa Energy - Gexa Saver Deluxe 1212 months13.9¢ / kWh
Gexa Energy - Gexa Saver Premium 1212 months20.8¢ / kWh
Gexa Energy - Gexa Saver Value 1212 months18.1¢ / kWh
Gexa Energy - Gexa Superb Saver 1212 months21.7¢ / kWh

These live rates for Oncor Electric Delivery service area were updated on . Pricing shown is based on an exact usage of 1000 kWh.

Compare rates today and get power when you need it.

Same-Day Business Electricity

Same-day service is also available for businesses. Learn more about business electricity in companies, plans, and rates in Texas.

Same-Day FAQ

Is there a cutoff time for same-day electricity in Texas?

Most providers on the ComparePower marketplace can sign up for same-day Monday through Friday before 2 pm. Some providers can connect service same day until 6 pm and some also on Saturdays.

Is it possible to get electricity connected on a Saturday in Texas?

Same-day electricity connections are available on Saturday from some Texas electricity companies. Visit ComparePower.com to find the best electricity provider for your home or business.

What if I need electricity on a Sunday or on a Holiday in Texas?

Texas electricity companies do not provide connections on Sundays or major holidays, so plan ahead if you’re moving. You can schedule service for your move in up to 30 days in advance on ComparePower.

ComparePower Texas

Very helpful, Compare Power makes switching providers stress-free.
“I plugged in my kWh usage from this past year & I could’ve been saving tons of money if I would have utilized this site & switched sooner!”
Ashley (TX, United States)
Moving to a new city is stressful, but shopping for an electric company was not!
Moving to a new city is stressful, but shopping for an electric company was not! It took less than 5 minutes to enter my info, compare quotes, and start service. I really like that you could search for renewable energy sources of electricity; it was my first time realizing that green energy was an option in my new area, and I feel good about opting for renewable rather than coal-generated electricity.
Sonia Y. (TX, United States)
I used to use Power To Choose…
“I used to use Power To Choose but this website is so much more user-friendly because it does all the energy calculations for me based on my usage history to find the best plan for our home!”
Natalie W. (TX, United States)
Super quick…
“Super quick and far better pricing than what I was paying! Thanks yall : )”
Doug D. (TX, United States)

Energy Savings Articles

Former Save On Energy CEO and Founder brings his extensive market expertise to ComparePower as Chief Operating Officer.

DALLAS (Jan. 18, 2022) – Dallas-based ComparePower, the highest consumer-rated online marketplace in retail energy, today announced the hiring of Brent Moore as Chief Operating Officer – a decision that will further solidify its mission to help Texas consumers find their best electricity plan.

ComparePower Brent Moore and Brad Gregory Team Up

Moore, the former President of Just Energy’s North American retail business, is an industry veteran who, in 2003, founded Save On Energy, one of the original online energy comparison marketplaces. Moore created Save On Energy’s business model and developed its brand in the newly deregulated retail energy industry. After building the company from conception, he sold it to a leading global media company in 2012. 

Moore knew he wanted to get back into the business and decided to meet with his old friend, ComparePower Founder and CEO Brad Gregory, to assess changes in the competitive landscape. After their first meeting, they found they shared a mutual passion for disruption and a similar vision for where they knew the Texas energy marketplace needed to go. It was undeniable that Texans would benefit greatly by their joining forces. 

We have a lot of mutual respect for each other and know that in working together we can have the best energy plan selection tool on the market – our more than 47,000 positive reviews speak for themselves. This partnership signals our unrelenting commitment to investing in Texas energy consumer centricity.

Brad Gregory – CEO of ComparePower

Moore said their mission is to make life better for Texas consumers by helping simplify energy shopping and making the overall experience of selecting a plan less stressful. 

That was always the goal and Brad really delivered on what my original vision was. Together, we are looking ahead to what is coming in 2022 and beyond. We’re aggressively investing in multiple growth areas and have significant expansion plans to reach even more Texans.

Brent Moore – COO of ComparePower

Their vision for ComparePower is to offer consumers a platform for navigating the many energy rate options and enrolling in the best plan for their unique situation. They were both appalled with “the game” some energy providers play in signing up customers for overpriced plans and have created a place for consumers to shop on their own terms, with no hassles and no pressure. 

We are resetting the rules of the marketplace to make it more transparent than it has ever been. We are simplifying the process. We’re making it as quick and easy as possible for consumers to make the right decision in choosing their energy plan, so they can get back to their busy day.

Brad Gregory – CEO of ComparePower

Moore said he’s confident in ComparePower’s proven model and is encouraged by how much growth the company is seeing. 

We’re really helping people. We’re ready to accelerate our reach plans and we’re hiring the best talent in our industry. We are going to make this tool available to a much larger residential and commercial audience.

Brent Moore – COO of ComparePower

Every Texan deserves to be happy with their electricity rate choice and we’re simplifying the process. Brent has a mix of experience and skill that is uniquely suited to accelerating our plans to help all consumers. He and I have the same vision and we’re looking forward to seeing it all come together and watching it grow.

Brad Gregory – CEO of ComparePower

About ComparePower

ComparePower is a technology enabled sales and marketing company based in Dallas, TX. Since 2009, the company has been on a mission to simplify the complexities that exist in the deregulated Texas electricity market. With more than 47,000 reviews and 4 million users, ComparePower has become the most highly rated platform in the industry for consumers and businesses to shop, compare, and select an energy provider. We believe every Texan deserves genuine satisfaction with their electricity rate choice and should enjoy the experience of choosing.

Interested in joining the ComparePower Team?

We are hiring! Use the button below or view current open positions on the ComparePower team.

MEDIA CONTACT AND IMAGE DOWNLOADS

For more information about ComparePower and to arrange interviews, please contact us below:

Contact: Silver Hogue

Phone: (214) 697-3113

Email: [email protected]

Worried about paying your bill, or about high bills as a result of working from home?

The far-reaching impact of COVID-19 has put a lot of financial strain on many of us Texans.

This is an unprecedented time in our lives. All of us are facing some type of concern related to paying our bills and keeping our lights on and affordable.

Whether you are worried about paying your bills and your lights going off, or you need to secure a lower rate to get the bills down while using a lot more energy working from home, this article will guide you in the right direction.

If you’re worried about high energy bills as a result of working from home, we can help.

Check out this guide and learn how to quickly make an informed decision, or put in your zipcode below to start comparing rates. You can switch your electric rate this same-day in about 10 minutes. The switch is automated – No one comes to your home, and there is no disruption in your service.

Working from home driving up your electric bill?

Dealing with a sudden loss of income and can’t pay your electricity bill?

Being ordered to stay home during the COVID-19 pandemic is uncharted territory for us all. If you find yourself out of work or unable to pay your electric bill, you should understand that getting relief is possible.

The Covid-19 crisis is unlike any we’ve had in the modern economy. Millions of people may be losing income or losing their jobs.

So what do you do if you find yourself unable to pay your electricity bill? Keep reading – we’ll share what we know so far, and how you can keep your lights on in this trying time we are all facing…

Talk to your electricity provider now

If you find yourself unable to pay your electricity you should talk with your electric company now. Do not wait.

Your electricity provider is unlikely to disconnect your power during a state of emergency, but you need to contact them now to make the appropriate arrangements so that you have power for your home or business.

Many providers are offering waivers of late payment fees and will work with you to come up with a plan.

They are facing tough times as well, and many providers have put programs in place to help ensure you receive electricity even if you’re having a tough time paying.

Disconnection Suspensions

On March 16, 2020, the Public Utility Commission of Texas held a hearing where the imminent threat to public health and safety by the Covid-19 epidemic was addressed.

The PUCT reinforced that each individual utility may choose to suspend disconnection for non-payment at their discretion. You can view the hearing here.

CenterPoint Energy Houston Electric has suspended disconnections for non-payment (DNPs). Visit the official CenterPoint Energy website for more information.

Oncor and TNMP each said that they will work with other utilities, retail electric providers, the Commission, and state and local authorities to develop a longer-term plan for handling DNPs during this State of Disaster. For more information visit the Oncor and TNMP websites.

AEP Texas has halted disconnection of service for non-payment in response to the coronavirus (COVID-19), “until further notice.” Visit the official AEP Texas website for more information.

It’s your turn to act:

Working from home with high energy bills, or losing your job and unable to pay them – both of these require just a bit of simple action from you. We’re here to help you in whatever ways we can- as the real-person team behind ComparePower, we too are going through this with you.

  • If you’re out of work and can’t make the payment on your bills, take the action we’ve outlined above to ensure your lights stay on.
  • If you’re trying to reduce your energy rate while working from home, enter your zip code and get a better deal locked in now. The switch is automated – No one comes to your home, and there is no disruption in your service.

From all of us at ComparePower, we wish you and your family health, wellbeing, and prosperity during this troubling time we face together.

Need to contact us for questions or guidance?  Contact us here.

Already in a Contract? Click here to learn more.

How to get lights with a switch hold?

A switch-hold will remain in effect until your light company notifies the utility company that payment obligations have been met, including back-billings and meter repair charges due to tampering, if applicable.

If you are disconnected for non-payment, you will need to pay your provider to get your lights turned back on.

What is a switch hold?

A switch hold is a response to an electricity customer who does not pay a past-due bill as a means to block and prevent that customer from switching to another light company before paying their overdue light bill. 

Why is a switch-hold placed on my account?

The switch-hold prevents a switch or move-in transaction from occurring. In the event that you are not able to pay your light bill, your electric company will offer you a deferred payment plan to allow you to pay any outstanding balance in installments.

Upon entering this agreement the light company can place a switch hold on your meter to prevent you from switching to another light company to avoid the balance due.  

Another reason is if your utility company determines that meter tampering has occurred at your location. It is against the law to tamper with the Transmission and Distribution Utility meter to benefit from unbilled electricity service. 

Can you switch electric companies if you owe money? 

In Texas, you can switch light companies if you owe money (as long as there is no switch hold already in place).

However, you will most likely be required to pay a deposit to start service with a new company. If your power is disconnected contact your electric company and request a payment plan to pay the balance owed overtime. 

When entering into a payment plan with your electric provider, you also agree to have a switch hold placed on your service address.

To prevent a switch hold from being placed on your account in the first place, do not enter into a payment agreement with your light company. If at all possible, pay your bill in its entirety.

If you do not have the funds, we still recommend that you pay your bill and switch to a prepaid company right here on ComparePower.

Not paying your light bill might have a negative impact on your credit, which will make it more difficult to get lights in the future when you need them most.

How to remove a switch hold? 

A switch hold can be removed by paying any past due balance owed to your electricity company. Once the balance is paid in full it can take up to 72 hours to remove the switch hold. 

If you are a new occupant residence with a switch hold you can remove the switch hold by contacting the electricity company that you are trying to set up services with and filling out a New Occupant Statement (NOS). New Occupant Statements must be accompanied by at least one of the following documents:  

– Copy of signed lease
– A notarized affidavit of landlord
– Closing documents
– Certificate of Occupant; or
– Utility bill in Customer’s name dated within the last two months from a different premise

Enter your zip code and we'll guide you to your best rate plan:

Related Reading:

Learn more about Texas electricity and how to shop for your best light plan.