Is a Cheap Electricity Company a Good One?

Whether it’s because of inflation, an unstable economy, or simply the high cost of living, it’s difficult to pay your bills and still be saving money for the future. For this reason, people are attempting to save money and be as thrifty as possible. One of the best ways to do this is by finding a cheap electricity company that offers affordable energy rates. 

However, because of how electricity plans are structured and how the system works in Texas, it’s tough to find a reliable and consistently cheap electricity company. Prices are constantly changing, and companies are tricky with their electricity plans and structure them in ways where your rate changes according to how much power you use. If you’re struggling to find a cheap electricity company that truly has affordable rates without hidden fees, contact us at GoodCharlie Energy. 

1.  
2. How are Electricity Prices Determined in Texas? 
3. What is the Average Electricity Rate in Texas? 
4. How Can Some Electricity Companies Offer Cheaper Rates Than Others? 
5. What to Look for in an Electricity Company 
6. Why GoodCharlie Energy is the Best Cheap Electricity Company in Texas 

How are Electricity Prices Determined in Texas? 

There’s a lot that goes into determining electricity rates in Texas. Because 80% of the state has deregulated energy, it’s entirely up to each individual retail electric provider to determine their own prices. However, because there are over 120 REPs in the state, companies have to keep their prices competitive so as not to drive customers to other providers. Here are some of the factors that determine electricity rates.  

• Your local market
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• If there are lots of energy companies in your local area, it usually results in lower electricity prices. The law of supply and demand applies to energy, so the more energy there is in an area, the lower your prices may be. 

• The wholesale cost 

Retail electric providers like GoodCharlie Energy don’t actually generate electricity. We buy it from power generating plants around the state at a wholesale price and sell it to residential customers in Texas. The amount that we have to spend to purchase electricity will be reflected in the price you pay as a customer. 

• The delivery charge 

Just as REPs don’t create electricity, we also don’t manage the power lines and electric poles that carry electricity from the power generating plant to your home. That responsibility falls to your local transmission and distribution utility company (TDU). Depending on how much we have to pay them to deliver the electricity, your rate may go up or down. 

What is the Average Electricity Rate in Texas? 

The current average electricity rate in Texas is 12.8 cents/kWh. However, this number is steadily rising due to increases in the costs of energy production and inflation. As such, you’re more likely to pay somewhere closer between 13 and 17 cents/kWh for your electricity when it’s all said and done. 

These rising costs are why it’s so difficult to find a cheap electricity company. They’re having to raise their costs and sneak hidden fees into their plans to make ends meet. Contact us at GoodCharlie Energy if you were the victim of these types of sneak attacks from past electricity plans. We have a guarantee of no hidden fees and highly affordable rates. 

How Can Some Electricity Companies Offer Cheaper Rates Than Others? 

There are a number of reasons why some companies can offer more affordable rates than others. While the main one is because they can buy electricity for cheap and deliver it for a low fee, there’s more that goes into the equation. 

Low Staff 

One of the ways that power companies cut back on costs is by outsourcing their work or having limited staff members on hand. Because they’re paying less for their employees, they can charge slightly less on their electricity plans. However, less staff or outsourced customer service usually results in you not getting the help you need when you need it. If there’s a power outage, you want to be dealing with someone who’s living and working in Texas to get your power back on. 

At GoodCharlie Energy, we pride ourselves on having excellent customer service provided by local Texans who understand what you’re going through.

Sneaky Rates 

Electricity companies are sneaky with how they structure their plans. While the rate you see listed next to an advertised plan might say 12 cents/kWh, that isn’t always the case, because of tiered rates. Here’s how tiered rates work. 

This table means that you’ll only pay 12 cents/kWh if you use a minimum of 2,000 kilowatt-hours of electricity. If you use between 1,000 and 2,000, you’ll pay 17 cents/kWh, and if you use less than 1,000, you’ll pay 20 cents/kWh. It’s important to understand your monthly usage before signing up for an electricity plan. 

Self-Production 

Although it’s rare, some power companies produce their own electricity. Because they make their own electricity, they don’t have the added cost of buying it from a third party. Instead, they can sell it to you for somewhere between wholesale and retail price, which is usually several cents cheaper than the competition. 

What to Look for in an Electricity Company 

Rather than looking for a cheap electricity company, you should look for the best one. Don’t simply look at the rate listed next to your electricity plan, because that isn’t always the rate you’ll pay. You should instead look for a company with good perks and benefits and one that truly cares about you and your entire household. 

Truly caring is what GoodCharlie does best. Our customer service, affordable rates, and promise of no hidden fees make us one of the top new REPs in the state. Throw in the fact that many of our perks and benefits are directed toward protecting the dogs and cats of Texas, and we truly are a company that cares. 

Why GoodCharlie Energy is the Best Cheap Electricity Company in Texas  

At GoodCharlie Energy, we’re more than the typical electricity provider. While providing quality electricity plans at affordable rates is what our business revolves around, we’re also dedicated to keeping the pets of Texas safe and sound. Every year, roughly 100,000 dogs are euthanized in Texas, which is the second-most of any state in the country. With your help, as well as our collaborative partners, our goal is to make Texas a no-kill state. 

So, if you care about dogs as much as we do, contact us at GoodCharlie Energy and join the fight in saving the dogs of Texas.