In Texas, shopping for electricity rates is a bit like playing the stock market or deciding when to buy a home. If you want to save money, the best time to shop for electricity is when the rates are low. That way, when there's an inevitable increase at some point, you will already have locked up a low fixed rate. The same applies to purchasing stocks or refinancing your home.
However, shopping around when the rates are low is easier said than done because the electricity rates in Texas are highly volatile and ever-changing. For that reason, it's important to know the best times to shop around for rates since you probably don't have time to check every day. This article will go into more detail about when electricity rates are at their lowest and when's a good time to think about switching.
In general, if you can find a plan with a lower rate, there's never a bad time to shop around for a new electricity plan. That is, of course, unless your current plan has hefty early termination fees. If that's the case, then you're better off waiting until the end of your current contract to sign up for a new one.
While it usually makes sense to wait to shop around for a new plan until your old one expires, this isn't always the case. For example, if the money you'll save with a lower electricity rate offsets the amount of your early termination fee, it's better to switch right away while the rates are low. Otherwise, if you wait until the end of your contract, there's a chance that electricity rates will skyrocket, and you'll be forced to choose a contract with a higher rate.
Even if you want to renew your current contract, it might make sense to do so before the end of the term. After all, if you sign up under a new contract with the same company, there's a chance that you won't have to pay early termination fees. This concept is the same as refinancing your home when mortgage rates are low. It gives you the chance to save money and is a fairly hassle-free experience.
While electricity rates in Texas are very volatile and unpredictable, there are certain times of year when electricity rates are lower across the board. In general, you can expect rates to decline the most during late fall, winter, and early spring.
This is because people aren't using as much electricity during these times of year because of the mild weather. It's estimated that roughly half of all electricity used in Texas is used by air conditioners, so if ACs aren't running, people aren't using much power.
The only time that rates aren't lower during the winter than the summer is if there's an unexpected freeze or polar vortex. When this happens, it's extremely difficult to generate new electricity, which will lead to a hefty spike.
The reason that rates tend to be higher in the summer months is because of supply and demand. The hotter it gets, the more people will use their air conditioners, the more electricity they will use.
Therefore, because electricity is in higher demand, electricity companies can increase their rates. In addition to raising rates simply because they can, it's also more expensive for REPs to purchase electricity from power companies, so they raise their rates to make up the difference.
Aside from the weather and time of year, it's also best to shop for electricity plans when the economy is doing well. When the economy is doing well, it usually means that gas and oil prices are low to moderate. Because gas and oil are the main sources of generated electricity in Texas, low gas and oil prices translate to low electricity rates.
Just as there are times when it's better to shop for electricity rates, there are also times when it's not a good idea.
Each of these instances is likely to result in a gas or oil shortage, which means an electricity shortage and higher rates.
If you live in a part of Texas where GoodCharlie Energy is available and you want to switch to us, you're about to make a great decision! We have a fast, easy enrollment process, whether you're switching from another provider or signing up for your first-ever plan. All you have to do is contact us, either online or over the phone, and notify us of which plan you'd like to switch to. We'll then verify that it's available in your area and start the switching process immediately.
We'll even notify your current electricity provider about your decision so that you don't have to deal with them. Finally, we'll notify your local utility company about the switch to ensure that there's no loss of electricity during the process. We make switching electricity providers as quick and easy as possible and save you hundreds of dollars in the process.
On top of having the best and lowest rates in Texas, GoodCharlie Energy also has the mission of making Texas the best place for a dog or cat to live. To that end, each of our rewards is geared toward benefiting your pet and you in turn. From a pet emergency fund to rounding up for local shelters, we're doing everything we can to ensure the safety of your pet and to make Texas a no-kill state. Contact us to learn more or to sign up with GoodCharlie today!