Flat-rate electricity plans are among the many new types of electricity plans that are emerging in Houston and throughout Texas. Flat-rate electricity is rapidly gaining popularity in Houston, but it’s certainly not for everyone. In this article, we’ll discuss what flat-rate electricity is, who can benefit from it, and what some of the potential downsides are. Let’s get started!
The process of delivering and using flat-rate electricity works the same as it does for other types of electricity plans. The main difference, however, is in how plans are structured when flat-rate electricity is involved.
Essentially, flat-rate electricity plans work the same way that other types of flat rates do. You pay a “flat rate” for your electricity regardless of how much energy you use. So, if you sign up for a flat-rate plan at a cost of $200 per month, you’ll pay $200 whether you use 400 kilowatt-hours of electricity or 4,000.
Flat-rate electricity can be a standalone plan, or it can get factored into an indexed plan.
A flat-rate electricity plan on its own is very straightforward. You contact a retail electric provider that offers flat-rate plans and begin the negotiating process. In most cases, the company will require your electricity bills from the last year or two to form a quote. Based on how much electricity you tend to use per month, they will assess your fee. Whatever that fee is, no matter how much electricity you use per month, will be your monthly electricity bill.
Here’s how it works when flat-rate electricity in Houston is part of an indexed plan.
|
Flat-rate based on 500 kWh |
Flat-rate based on 1,000 kWh |
Flat-rate based on 2,000 kWh |
|
$100 |
$200 |
$300 |
As you can see, you always pay a flat rate for your electricity. However, the rate you pay depends on how much electricity you use. If you use 500 kWh or less, you’ll pay a flat rate of $100. If you use between 500 and 1,000 kWh, you’ll pay $200, and if you use more than 1,000 kWh, you’ll pay $300.
While the exact terms and structure of your contract may vary, this is how flat-rate electricity works when it’s part of an indexed or tiered plan.
If you live in Houston or the surrounding area, you can sign up for flat-rate electricity plans that are part of a fixed or indexed-rate plan. Currently, there are several retail electric providers that offer flat-rate electricity plans. However, it’s important to consider carefully whether or not a flat-rate electricity plan is right for you.
While there are some people who can benefit from flat-rate electricity in Houston, it’s a plan that isn’t for everyone. The main group of people who can benefit from flat-rate electricity are those who are on a fixed income.
Flat-rate electricity offers you the luxury of knowing exactly how much you’re going to spend on electricity each month. If you live on a fixed income, are retired, or depend on social security, knowing your monthly expenses is crucial. A flat-rate electricity plan in Houston will ensure that you don’t spend more than what you plan to on electricity.
As we said before, flat-rate electricity is nice for some people, but not for everyone. Here are some of the potential downsides of flat-rate electricity plans.
While you know exactly how much you’re going to spend, it’s often more than what you should. The reason for this is that electricity companies often figure very high when they estimate how much electricity you use. For instance, if you used an average of 1,500 kWh of power over the last two years, your power company will probably figure for using 1,750 to 2,000 kWh when they quote you.
Power companies do this because they’re determined not to get ripped off. They’ll plan their quote guessing that you’ll use on the high end of your average and then some. So, while you know exactly what your bill will be each month with flat-rate electricity, it would likely be less if you sign up for a quality fixed-rate plan.
If you don’t like the idea of overpaying for a flat-rate electricity plan, there are plenty of other options to choose from. You can sign up for prepaid electricity, variable-rate electricity, or fixed-rate electricity. However, if you want the best-guaranteed rate and a stable electricity plan that rewards you, you should sign up for a fixed-rate electricity plan.
Once you realize that a fixed-rate electricity plan is the way to go, you should contact us at GoodCharlie Energy. We’re one of the newest and best retail electric providers in Houston, and we have some of the best rates in the city. In addition to our competitive rates and prices, here are some of the other benefits we offer.