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!
- What is Flat Rate Electricity?
- How Does a Flat Rate Electricity Plan Work?
- What Type of Flat Rate Electricity Plans are Available in Houston?
- Who Can Benefit From Flat Rate Electricity?
- Downsides of Flat Rate Electricity
- Who to Turn to for an Alternative to Flat Rate Electricity
What is Flat Rate Electricity?
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.
How Does a Flat Rate Electricity Plan Work?
Flat-rate electricity can be a standalone plan, or it can get factored into an indexed plan.
Flat-Rate Electricity as a Standalone Fixed 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.
Flat-Rate Electricity as Part of an Indexed Plan
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.
What Type of Flat Rate Electricity Plans are Available in Houston?
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.
Who Can Benefit From Flat Rate Electricity?
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.
Downsides of Flat Rate 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.
You Overspend
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.
Who to Turn to for an Alternative to Flat-Rate Electricity
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.
Fixed-Rate Electricity Plans With GoodCharlie Energy
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.
- Unmatched customer service representatives that live and work in Houston.
- Outstanding perks and pack benefits for pet owners including 24/7 video access to licensed veterinarians, a $750 emergency fund for pet visits, and billing roundups where the proceeds get sent to local animal shelters.
- The rounding up for shelters comes out of our pockets and won’t cost you a penny.
- The option of converting any electricity plan to one that uses green energy from renewable resources such as wind or solar power.
- An easy signup process whether you’re a new customer or switching to us from another company.
- When you switch to GoodCharlie Energy, you won’t have any disturbances or power outages and we’ll handle everything from our end. We can also guarantee that you won’t be the victim of hidden rates or fees with any of our fixed-rate plans.
Share via:
