Fixed rate electricity plans in Texas are the most popular choice for homes and businesses. They offer stability and convenience in a volatile energy market. While energy prices can fluctuate on a daily, or even hourly basis, due to a number of factors, fixed rate electricity plans provide consistency and security for your electric bill.
What is a fixed rate electricity plan?
A fixed-rate electricity plan ensures that you have the same rate per kilowatt hour of energy for the entire term of your contract. This will remain true no matter how much energy you use. Most fixed-rate Texas electricity plans last between 12 and 36 months in contract length, although you can find plans as short as a single month.
While fixed rate electricity plans provide consistent energy costs, you’ll still have to consider other “hidden fees.” This includes utility delivery charges that are factored into your electricity bill and are not controlled by your energy provider, as well as any early termination fees.
On the other hand, variable rate plans allow your energy costs to fluctuate on a monthly basis depending on the market price of electricity. This means that sometimes your monthly bill might be slightly cheaper than average but at others it can experience significant price hikes, despite regular energy needs.
Our advice? Save yourself the anxiety of inconsistent electricity bills and provide your budget with some stability through fixed rate electricity plans.
What are the benefits of fixed rate plans?
Fixed rate plans are the most popular type of energy plans because they provide customers with peace of mind about their energy bills in a way that fluctuating rates can’t.
While variable rate plans may be temporarily cheaper, fixed rate plans offer the three C’s: certainty, consistency, and convenience.
- Certainty: With a fixed rate you have certainty about your rate and, to some degree, your bill. You’ll maintain the same price per kilowatt hour of electricity for your entire contract length.
- Consistency: Fixed rates don’t fluctuate like variable-rate plans, meaning no month to month changes unless you choose to switch electricity providers.
- Convenience: With a fixed rate, you don’t have to monitor your electricity usage or the energy market wholesale prices. This means you can peacefully power your home without a second though.
Pro Tip: While you don’t have to monitor your energy consumption as closely while on a fixed rate plan, it’s still smart to keep tabs on your energy efficiency. This will help you reduce your monthly bill regardless of electricity rates.
Every energy provider in Texas offers fixed rate options, especially for residential customers. This means that there are plenty of electricity companies to choose from when you shop.
Shop Fixed Rate Plans Near You
At EnergyBot we strive to help Texas residents get the best energy plan for their home or business – no matter the type. You can choose from a wide range of energy plans, including our recommended fixed-rate plans, by getting started today.
Best Texas Electricity Plans: Fixed Rate
Provider |
Plan Name |
Term |
Rate |
|---|---|---|---|
|
EnergyBot 36 |
36 months |
14.19¢ |
|
|
EnergyBot 13 |
13 months |
14.29¢ |
|
|
EnergyBot 24 |
24 months |
14.29¢ |
|
TexasConnect 36 |
36 months |
14.39¢ |
|
|
EnergyBot 12 |
12 months |
14.39¢ |
|
GoodEnergy 36 |
36 months |
14.52¢ |
|
|
TexasConnect 24 |
24 months |
14.66¢ |
|
|
GoodEnergy 12 |
12 months |
14.72¢ |
|
|
GoodGreen 36 |
36 months |
14.72¢ |
|
|
TexasConnect 12 |
12 months |
14.86¢ |
How do I find the cheapest fixed rate plan in Texas?
In order to select the cheapest fixed rate plan for your home, you should evaluate plans based on your average monthly usage. This will help you to find the best electricity rates for your home or business while keeping in mind your energy needs.
You can take advantage of EnergyBot’s Usage Tool to pull your exact monthly usage with your ESID number and calculate current electricity bills. From there, use the Comparison Tool to review fixed rate plans and estimate your potential energy bill with different Texas electricity providers.
Pro Tip: If you don’t know your ESID number off the top of your head, you can use EnergyBot’s ESID Lookup tool to find it using your address.
Not sure which energy plan is the best for your average usage? EnergyBot’s advisor, EBee, can help! You can filter through the available Texas energy plans for exclusively fixed rates or review all the available options.
Are fixed rates always the cheapest?
As part of our commitment to provide you with the best energy plans for your home or business we’ll always shoot you straight. So, that raises the question: Are fixed rate plans always the cheapest Texas energy plans?
Unfortunately, the answer isn’t always straightforward. In any given month, you might find lower rates on variable plans that ebb and flow with the Texas electricity market. And, there’s no guarantee that locking in today’s fixed rate plan will pay off long-term if the price of wholesale energy takes a dip.
However, savings from variable rate plans typically come with a steep “certainty tax.” This is the risk that rates will see a sudden spike in future months and send your energy bill surging. Fixed rate customers, on the other hand, can rest easy during market fluctuations knowing that their rate is locked in.
When is the best time to shop for electricity plans?
Whether you’re specifically looking for a fixed rate plan or are open to any type of electricity plans, we recommend that you start shopping 30-45 days before the end of your contract.
By beginning the shopping process early you have time to compare offers and find the best electricity rates for your home or business. Plus, if you find an energy plan that works for your needs you can switch electricity providers up to 30 days before your contract expiration date with no early termination fees.
Pro Tip: In Texas, it’s typically smart to look at electricity plans that include the winter months. Since winter is the off-peak season for the Texas energy market, you’ll typically see better rates and increased savings.
Other Types of Electricity Plans
While most Texas residents prefer the security that a fixed plan provides their electricity bill, there are some situations in which other types of energy plans are useful.
Other types of energy plans to choose from include:
Variable Rate Plans
As previously mentioned, variable-rate month to month plans are also available. While we typically don’t recommend them to residential customers, sometimes they can be useful for businesses looking to get the cheapest electricity plans. Just keep in mind that variable rates can change monthly with no limits, so you’ll need to be careful and pay close attention to the Texas energy market.
Time of Use Plans
Time of Use (TOU) plans are also commonly known as “free nights and weekends” plans, as they offer free electricity during specific periods. As the name suggests, these plans typically provide free electricity during the evenings and weekends, but electricity rates are much higher during normal hours.
If you aren’t home much during the week or not home until late in the evening on weekdays, these can be a smart option. Just remember to be very careful as there are many energy costs you can’t avoid– even if you aren’t actively turning something on.
Flat Rate Energy Plans
Flat rate energy plans, also known as budget billing, offer the same electricity bill amount every month for your entire contract length. This doesn’t mean that your energy rate is fixed, just that your bill is. This helps customers to know how much they’ll be spending on utilities every month.
For folks who need consistency to make their budgets work this can be a useful option. However, make sure you read the terms and conditions very carefully and understand how much energy you actually use. Otherwise you risk getting stuck with pricey “true up” months that make up the difference between your usage and your bill.
Find the Best Fixed Rate
If you’re ready to secure the best fixed rate plan for your home or business you can get started today with help from EnergyBot. By comparing energy prices regularly you’ll be able to find the best electricity rates for your needs. Plus, with help from EnergyBot’s Comparison tool you can enroll in a new plan within minutes.
See today’s electricity rates for cities in Texas
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