Among the many different electricity plan options you have in Texas, you also have what’s known as a month-to-month electricity plan. Month-to-month electricity plans can either be prepaid plans or variable-rate plans. Essentially, month-to-month electricity plans are similar to phone and internet plans of the same name. You sign up for electricity on a monthly basis, and you have the option of re-enrolling or finding a new plan at the end of each month.
While month-to-month plans are gaining in popularity and are good for some people, they’re definitely not for everyone. This article will look at the good and bad components of month-to-month electricity plans and what type of plan to choose as a good alternative.
- What is Month-to-Month Electricity?
- How Does Month-to-Month Electricity Work?
- Downsides of Month-to-Month Electricity
- What’s a Good Alternative to Month-to-Month Electricity?
What is Month-to-Month Electricity?
Month-to-month electricity is exactly what it sounds like - electricity that you purchase on a monthly basis. They often don’t require a credit check or deposit and are extremely easy to sign up for. However, because you need to re-enroll at the end of each month, you might end up paying a higher price for the proceeding month. It all depends on what the energy market is doing and what the market prices are.
Different Types of Month-to-Month Electricity Plans
There are two different types of month-to-month electricity plans for you to choose between.
Prepaid month-to-month plans
With a prepaid electricity plan, you pay for your usage at the beginning of the month as you would with a prepaid phone or internet plan. You can use whatever electricity you pay for, but you can’t exceed that amount. If you do, you’ll incur additional fees and charges, and you may even get your power turned off without notice.
Variable-rate month-to-month plans
With variable-rate month-to-month plans, you pay at the end of the month for your electricity usage. A variable rate plan is similar to a fixed-rate one but without the guarantee of a fixed rate. Therefore, your rate can change every month, and it’s up to you to decide if you want to re-enroll in the plan or enter into a new one.
How Does Month-to-Month Electricity Work?
With a month-to-month electricity plan, you can enroll in a new plan at the end of each month. You don’t have to sign a long-term contract as you do with fixed-rate electricity plans. However, you also won’t be entitled to the savings and benefits that long-term plans offer.
Let’s say that you just moved to Texas, and you need electricity for your new apartment in Houston. You don’t have time to research the different electricity companies available in your area, so you sign up for a month-to-month electricity plan with a company. It’s a good short-term solution because it gives you time to find the perfect electricity plan.
Month-to-month electricity plans are also a good option if you move around a lot for work and are never in the same place for more than several months at a time. Monthly electricity plans are meant for flexibility and ease, but they aren’t meant as a long-term electricity solution.
Downsides of Month-to-Month Electricity
As we said before, month-to-month electricity plans aren’t all fun and games and come with a number of downsides. Contact us to get started with a good alternative to month-to-month electricity plans.
Higher Rates
The biggest downside of month-to-month electricity plans is that they often have higher rates. Because of the benefits that these types of plans offer - flexibility, no commitment, no down payment, and no deposit - they come with the catch of a higher rate. In some cases, you can end up paying two times as much for a month-to-month plan as you would for a fixed-rate one.
No Benefits or Rewards
The only benefits that a month-to-month plan offers are the freedom and flexibility of the plan itself. There typically aren’t additional perks and benefits involved that can sweeten the plan down the road.
No Stability
Some people like the flexibility of a monthly electricity plan, but others crave stability. If you like stability and dislike change, then a month-to-month electricity plan isn’t for you. Everything can change monthly, including your rate, your provider, and your utility company.
Hidden Fees
As with most electricity plans, month-to-month ones have hidden fees and charges attached to them.
Delivery fees
The delivery fee is what your electricity charges to compensate your utility company for delivering electricity to your home.
Overuse and minimum use fees
Most month-to-month electricity plans are based on using a certain amount of power per month. If you use more than your allotted electricity, you’ll be assessed an overuse fee. However, if you try to save money by not using as much power, you might get assessed and a minimum usage fee.
Restart fees
If you have a prepaid month-to-month electricity plan and you exceed your allotted power for the month, you might have your power turned off. After all, the power company isn't going to give you free electricity just because you want to leave the lights turned on or run your air conditioner too much. Power companies on a month-to-month basis also aren’t required to notify you of an impending shutdown.
What’s a Good Alternative to Month-to-Month Electricity?
If you don’t think that month-to-month electricity is right for you, you should consider a fixed-rate plan from GoodCharlie Energy. We’re one of the newest and best retail electric providers in Texas, and we exclusively offer fixed-rate electricity plans. We also like to keep things simple, which means we offer three plan options to our customers when you live in one of our service areas.
Reasons to Sign Up With GoodCharlie Energy
In addition to offering competitive rates on our electricity plans, here are a few other reasons to consider enrolling in a plan with GoodCharlie.
- Unmatched Pack Benefits that are geared towards helping your pets stay safe.
- A dedication to making Texas the best place for a dog to live in.
- Outstanding customer service and a handy blog to answer all your pet and electricity questions.
- We’re partnered with several of the top animal shelters in Houston and send monthly donations their way.
- Renewable energy options on each of our plans.
To date, we’ve donated nearly $50,000 to animal shelters and have impacted the lives of more than 300 animals. We’re truly a company that cares about more than the bottom line, and we’d love to partner with you. Contact us to make the change to GoodCharlie and start saving money and lives today!
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