Dallas is one of the largest, most populous, and most important cities in Texas. In addition to the Cowboys, Mavericks, and Stars, Dallas is also home to one of the most competitive electricity markets in the state. As such, it can take time to choose the right electricity company and plan for your needs.
If you're curious about the Dallas electricity market and how it affects your electricity choices, you've come to the right place. This article will tell you everything you need to know about electricity rates in Dallas, how they work, and how they're determined. We'll also look at who to turn to for the best electricity rates in Dallas.
On average, residential customers in Dallas pay roughly 13 cents/kWh for their electricity. While this is mostly on par with the Texas average of 12.8 cents, some Dallas residents pay far more or less. It all depends on where you live in Dallas, who your provider is, and the type of plan you have.
Like 80% of other cities in Texas, Dallas is home to a deregulated electricity market. This means that each electricity company (REP) can determine their electricity rates and structure their plans however they please. Thanks to fierce competition, however, electricity companies are prevented from setting outrageously high rates that no one can afford.
While REPs can determine their own electricity rates, you retain a lot of control as the customer. You see, the second part of having deregulated electricity is that you have the power to choose your own provider and plan. This means that you can conduct research and compare electricity rates in Dallas from different companies. Deregulation also means that you can choose the type of electricity plan you prefer, as well as decide on the length of the contract, both of which affect your rate.
While REPs will ultimately determine the electricity rates in Dallas, there are various factors that can drive the rate up or down.
As with all goods and services, supply and demand will play a huge role in the cost of electricity. The more that people need electricity, the more they're willing to pay for it. REPs understand this concept, which means that when supply is low, and demand is high, they will raise their electricity rates. You can avoid this, however, by locking yourself into a long-term fixed-rate electricity plan.
It's become common knowledge that Russia's decision to invade Ukraine had a terrible impact on the cost of electricity and energy. Nearly overnight, a large chunk of America's gas and oil supplies were cut off, which drove electricity prices through the roof. While we've recovered somewhat from the initial shock and shortage, electricity prices remain higher than before Russia's invasion.
You may also have noticed that electricity is much more expensive during certain parts of the year. During the summer and winter months, when there are extreme temperatures, there's a higher demand for electricity. Unfortunately, this usually ends up causing a supply chain issue resulting in a spike in electricity rates.
The final factor that will affect electricity rates in Dallas is inflation. While most people associate inflation with higher grocery bills and dining experiences, it also affects the cost of gas, oil, electricity, and the tools and goods needed to create it. In other words, the higher the inflation rate is, the more your electricity will cost.
In addition to the factors listed above, the type of electricity plan you choose will also affect your electricity rate. While you can't control most of the factors listed above, you can control the type of electricity plan you select. Here's a brief overview of the types of plans and their impact on electricity rates in Dallas.
Although convenient and easy, prepaid plans usually have high electricity rates. Additionally, since they're month-to-month plans, your rate could increase every time you renew the plan.
As with prepaid plans, variable-rate electricity plans are on a month-to-month basis and highly volatile. While they offer freedom and flexibility, your rate will almost certainly increase during times of economic stress and uncertainty.
If you're worried about how volatile the electricity market is and that the electricity rates in Dallas are steadily increasing, you should choose a fixed-rate electricity plan. Fixed-rate plans allow you to lock yourself into an affordable rate for years at a time. That way, your Dallas electricity rate will stay the same if there's a supply chain issue, inclement weather, or economic instability. Instead, while everyone else's rate increases, yours will remain low and affordable.
If you're looking for the best electricity rates in Dallas, look no further than GoodCharlie Energy, and here's why.
Switching to GoodCharlie Energy is easy if you're in the market for a new electricity plan. We might be a newer power company, but we're quickly becoming one of the best for affordable and reliable energy in Dallas and the surrounding area. We ask you to join us in making Texas the best state for dogs and cats to live in. Contact us to make the switch today!