Texas Electricity Plans – A primer
Texas Electricity Plans provided by Texas electricity retailers are varied and cost-effective. As in all consumer-driven retail market spaces, price is king and quality of service prove to be primary drivers behind the popularity or market leadership of an electricity retailer. Typically, the electricity plans provided are largely similarly- in the sense that they offer fixed rate plans, variable rate plans, prepaid plans.
Fixed Rate Plans
The Texas Electricity Plans such as Fixed Rate Plans are typically for a set length of time and will usually include contracted service for fixed use. In this plan, the rates are fixed and will ensure that your monthly payments towards electricity bills will remain consistently the same; even if there are rises in electric prices in the markets.
Of course, there is a downside to this type of Texas Electricity Plans. If there is a fall in the prices, this would prove to be a disadvantage. At times, there are variations to the contracts- Fixed Price Contract as well as a Hybrid Price Contract.
In a Fixed Price Contract- it includes a fixed rate plan. However, if the fixed rate plan is exceeded then all excess shall be billed at a predetermined price.
Hybrid Price Contract – is for fixed rate plan as well. However, in this type of Texas Electric Plans, the number of units beyond the forecasted units will be billed at variable rates.
Variable rate plans
In this type of Texas Electricity Plans the price fluctuation will be determined by market prices. In this type of plan, electric rate drops like when the natural gas price drops could prove to be an advantage. While there are disadvantages too in this plan - when natural disaster occurs – the prices will rise resulting in high bills during those months.
This is one of the smartTexas electricity plans, in which came into effect following the introduction of smart meters. Also called the Pay-As –You-Go plan, it gives consumers the choice to predetermine their energy costs, in much the same way as prepaid mobile plans. Smart meters with prepaid credits will allow consumers to use electricity to the maximum credit available.
Texas Electricity Plans offer consumers the right opportunity to make the right choices. As each retailer offers better electricity consumption plans, consumers receive better energy services in the deregulated energy market for businesses and residential consumption at prices affordable to them.