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Say bye-bye to surprise electricity bills
You may be on the wrong plan if your electricity bill is higher than average. You can save money by switching to a new plan that better fits your usage.
Learn how to switch & save 👉
In Texas, you can choose an electricity plan that fits your lifestyle and a rate that fits your budget.
You’re in the right place if you’re facing a high electric bill.
Learn why your bill spiked, how to get it back under control, and how to save on it month after month without 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 like you every year.
Find out if you’re overpaying
The average retail price for residential electricity in Texas is 14.46 ¢/kWh per kilowatt-hour (kWh), according to the U.S. Energy Information Administration.
Find the average price you paid on your electricity bill. You are paying more than the average Texan if it is higher than 14.46 ¢/kWh per kilowatt-hour.
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 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, 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 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: Ensure you are not already in a contract with your provider before switching.
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’re under a contract with your electricity provider, you must assess whether switching will save you money in the long run (even if you pay the early termination fee).
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 monthly.
Getting as many months of usage as possible with a full 12 months is ideal.
Next, enter your monthly usage on ComparePower’s historical usage calculator.
kWh usage pricing calculator
Input as many months of usage history as possible, then click “Compare Rates.”
If you can’t find your usage history, you can still compare rates by home size by entering your zip code at the top of this page.
Next, look at the plans’ total annual cost 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 how much you have paid your electricity company for the same usage.
You will need to find all your electricity billing statements and add the amounts to see what your plan currently costs 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.
It is time to switch if the total is more than the total annual cost on ComparePower.
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, a household member is called to military service, or 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 household member 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 specific date due to moving out. This is how you prevent service interruption 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 household member.
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 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.
How to lower your electric bill
This short 2-minute video will show you how to find your best plan on ComparePower.
Why has my electric bill increased?
Several factors can contribute to an increase in your electricity bill. These are the most common reasons for a high electric bill.
– Usage changed due to extreme weather.
– Moved into a new home and chose the wrong plan.
– Renewed on a more expensive plan.
– Switched to another provider plan that costs more.
– Your contract expired, and you’re on a holdover rate.
– Usage changed due to a faulty appliance.
Choosing the right energy provider and plan can seem daunting, but it doesn’t have to be. You can easily find the right plan for your home’s usage in minutes on ComparePower.
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, you’ll use more energy if you have a full house during the holidays and school vacations.
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 monthly.
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 it 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 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.
It is essential to understand that a renewal offer is a new contract with a new rate, not a continuation of your expiring contract.
The new contract includes the details of your new electricity rate, often higher than what you’ve been paying.
In Texas, providers are required to send renewal notices at least 30 days before a contract expires. Still, you can expect to begin receiving renewal offers as early as 60 days and sometimes three months before your contract’s expiration.
Renewing your contract for three or six months is seldom a wise decision. Early renewal offers rarely have lower rates than what you currently pay.
Since it is impossible to predict the electricity rate 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.
To save money on your energy bill, compare your provider’s renewal offer with competitors’ plans and rates. Ten minutes can save you hundreds of dollars.
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 it can save you hundreds of dollars a year.
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 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) required 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 usage.
Known as teaser rates, these cheap and eye-catching rates entice shoppers with prices that are too good to be true.
Almost no one uses precisely 500, 1000, or 2000 kWh monthly.
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 where 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 pay much more than anticipated when choosing an energy plan with a tiered rate structure.
How can you tell if a plan has a tiered-rate structure and is suitable for your home?
There are various 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. When you shop and compare plans with your home’s historical usage profile, a tiered or usage credit plan might be right for you.
You won’t have to worry about tiers and credits on ComparePower. Enter your usage history, and we’ll do the math to calculate your best plan and rate. No tricks or gimmicks.
Learn to shop for the right plan with your home’s usage profile 👉
How to lower high electric bill FAQs
How can I reduce my electric bill?
The best way to reduce your electricity bill is to ensure that your energy plan is ideal for the usage profile of your home. Enter your home’s historical usage on ComparePower.com to find the right plan for your home in minutes.
What is a typical electric bill in Texas?
According to the U.S. Energy Information Administration, the average retail price of residential electricity in Texas is 14.46 ¢/kWh. If the typical Texan uses 1,132 kWh/month on average, at 14.46 ¢/kWh, the electric bill would be around $163.66.
Why are energy bills rising?
The price increase is due to the steep rise in wholesale gas prices, which directly impacts electricity production costs.