Expired Electricity Contracts: The Silent Bill Killer

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Don’t Let Your Electricity Contract Become a Silent Bill Killer

Have you ever opened your electric bill and felt like you were suddenly powering the whole block?

If you’ve experienced that jaw-dropping moment, there’s a good chance an expired contract and its sneaky sidekick, the holdover rate, are to blame.

What Are Holdover Rates (and Why Do They Sting)?

When your fixed-rate electricity contract ends, your power company automatically shifts you to a holdover rate.

It’s usually a variable rate that changes based on the real-time market price.

There is no warning or fanfare – just a quiet switch that can lead to a shocking bill.

Here’s why holdover rates can hurt:

• Riding the Market Rollercoaster: Since holdover rates are tied to the market, your price can skyrocket when demand is high, like during a scorching Texas summer.
• Better Safe Than Sorry (for Them): Power companies aren’t sure how much energy they’ll need when folks roll onto holdover rates, so they often charge more to cover their bases. Guess who foots that bill? Yup, you.

Spotting Holdover Rates on Your Bill

Don’t wait for a surprise attack on your wallet. Keep an eye out for these holdover rate red flags:

• Expiration Date: Check your contract for the end date. It might be on your bill, in your original paperwork, or in your online account. Mark your calendar a month before so you can start shopping around.
• “Variable” or “Month-to-Month”: If these terms appear on your bill, you’re likely in holdover rate territory. Fixed-rate plans will clearly say “fixed.”

Protecting Yourself from Holdover Rate Shock

Good news. With a bit of planning, you can dodge the holdover rate bullet entirely:

1. Know Your Expiration Date: Find your contract end date and mark it on your calendar, set a phone reminder, or do whatever it takes to remember.
2. Start Shopping Early: Compare new plans 30-45 days before your contract expires. Don’t just look at price – consider the contract length, renewable energy options, and other factors that matter to you.
3. Let ComparePower Do the Heavy Lifting: Use a comparison tool like ComparePower to quickly evaluate plans from multiple providers. We’ll help you find the best fit based on your usage patterns and preferences.

Already Stuck on a Holdover Rate? Here’s What to Do

First, breathe. You’re not locked in forever. Here’s your escape plan:

• Make the Switch: The longer you stay on a holdover rate, the more it’ll cost you. In most cases, you can change power companies in Texas without penalty, so don’t wait!
• Shop Smart: Don’t just grab the first plan you see. Use a reputable comparison tool to weigh your options and find one that aligns with your energy habits. That way, you can avoid landing back on a holdover rate in the future.

Take Control: Your Action Plan for Affordable Electricity

With the knowledge of holdover rates and the tools to find the best electricity plan for your needs, you’re well on your way to controlling your energy costs.

Remember, the key is to stay proactive. Monitor your contract end date, start shopping early, and use ComparePower to find the perfect plan for your household.

Don’t let expired contracts and holdover rates sneak up on you. Take action today and secure an electricity plan that keeps your bills manageable and your home running smoothly.

The power is yours – now it’s time to use it.