Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace.
Month-to-month electricity
A month-to-month electricity contract is excellent if you need quick electricity for your home without signing a long-term contract or paying an upfront deposit.
Contracts with fixed rates bind you to a payment schedule for 6 to 36 months, during which you pay a fixed rate for your electricity but cannot switch providers.
Most Texans choose fixed-rate electricity plans as they are more predictable and easier to budget each month. However, there are some scenarios where a month-to-month electricity plan would make sense.
Month-to-month plans give you the flexibility to switch providers at any time. However, the trade-off is that the rate you pay each month will fluctuate with market conditions, making budgeting more complex than a fixed-rate contract.
You can enroll in a month-to-month or a fixed-rate electricity plan for your home today on ComparePower in as little as 5 minutes.
Enter your zip code to find all the no-contract monthly energy plans on ComparePower.
To filter monthly plans, toggle the “No-Contract/Variable rate” search filter on the search results page.
When does month-to-month electricity make sense?
Is a month-to-month plan the best option for you? You should have a good understanding of your monthly usage and a plan to keep track of the rate you’re charged each month.
Say you’re transitioning between roommates or just had some tenants leave your rental. A month-to-month plan could easily cover that transition period until you find stability.
If you’re concerned about your credit or getting charged a big deposit, month-to-month plans are a great option to get your lights on.
Learn how to get no-deposit lights.
But if you’re planning on moving soon and are worried about having a contract that you’ll have to break, month-to-month plans might not be your best option.
We recommend you find a plan that gives you the cheapest rate for your usage. If that means signing up for a contract and then canceling it, go for it.
Texas law protects all movers from being charged early termination fees, so you won’t have to worry about breaking your contract.
The advantages of month-to-month electricity
Paying for electricity on a month-to-month basis has many advantages. There’s no obligation to commit to something long-term that you may not want to begin with.
You still have reliable power all year round, but you can change providers anytime.
Because you are not under contract, you will not be charged any termination costs if you cancel or switch to a different provider.
Some monthly plans also allow you to skip credit checks. Month-to-month plans can be a terrific way to turn the lights on in your home if you’re just out of college or working hard to improve your credit score.
You won’t need your ID or social security number during the sign-up process.
Drawbacks of month-to-month electricity
The lack of pricing stability is the fundamental disadvantage of month-to-month plans. The cost of power varies from month to month and might fluctuate depending on the weather.
If the cost of electricity skyrockets one month, say because a freak winter blizzard freezes half of the country in February, your bill might easily double or triple the next month.
If rates change, you’ll need to pay close attention to your monthly usage to avoid being surprised by a large bill.
You can look into pricing histories from suppliers online, but you never know what you’ll be spending next month until they post the variable rate.
If you choose prepaid, you’ll have to keep track of your account balance throughout the month. If you aren’t careful, hot summer weather could see you adding dollars to your account numerous times every month.
A month-to-month plan’s savings potential may outweigh the danger of price swings, but you’ll need to keep track of your electricity usage to avoid a big payment.
How month-to-month electricity works
Month-to-month energy plans have variable rates that can change every month with weather and market conditions.
As a result, month-to-month contracts may not be the best option during the summer and winter months, when electricity prices are rising.
Fortunately, you can easily switch things up after the first month because you’re on a month-to-month plan and don’t have a contract.
If you go month to month with a prepaid electricity plan, you must keep a balance in your account and make an initial payment that will be applied to your first bill.
Month-to-month electricity FAQ
How are variable and fixed rates priced in Texas?
Variable rates energy plans are generally higher than fixed-rate contracts in Texas. Most energy consumers in Texas choose fixed-rate electricity plans over variable-rate as they are more predictable and more manageable to budget.
Variable-rate plans consider the current market price for electricity which can fluctuate throughout the year with market and weather conditions.
A fixed-rate plan reflects the cost of wholesale electricity over 12 months of service. Rates may be higher or lower than variable rates depending on the time of the year.
Kilowatt-hour Calculator
How to Lower Your High Electricity Bill
Switch Electricity Companies
How Electricity Contract Renewals Work in Texas
Start Electricity Service
Get Power ON Today
Apartment Electricity
Fixed-Rate vs. Variable-Rate Electricity
Power Wizard: Everything You Need To Know
Electricity Contracts: Know the Facts Before You Sign
Energy Ogre: Know Before You Buy
The Best Power to Choose Alternative
TXU Energy Ultimate Summer Pass
Gexa Energy Saver
