While many cities and towns in Texas have deregulated electricity, Houston is the largest and most prominent. It’s also the energy capital of the Lonestar State, which means that many of the state’s electricity companies and REP’s have their headquarters in Houston. In all, there are more than 130 retail electric providers in Houston, which makes the electricity market highly competitive and confusing.

Whether you’re new to Houston or are a lifelong resident, you’ve come to the right place if you’re wondering who the best electricity provider is in Houston. This article will discuss the different types of electricity providers in Houston, who the most reputable ones are, and how to choose the right company for you.

Average Electricity Rates in Houston

Before choosing the best electricity provider in Houston, it’s essential to know the average electricity rates. Knowing the average rate in Houston, you can compare it to your potential electricity companies to see if they’re offering a good deal.

Currently, the average electricity rate in Houston, Texas, is around 13 cents/kWh. That means that if you use 1,000 kilowatt-hours of electricity per month, you’ll pay right around $140. While 13 cents is the average electricity rate, you can pay much more or less than that amount depending on your chosen plan. To ensure you get the good end of the deal, enter your ZIP Code into the free rate comparison tool at the top of the page to browse all the plans in your area.

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Types of Electricity Plans in Houston

In addition to knowing the average electricity rates, it’s also important to know the different types of electricity plans available in Houston.

Fixed-Rate Plans

Fixed-rate electricity plans are the most popular type of plans and are often offered by the best electricity providers in Houston. Fixed-rate plans offer a short or long-term contract with a fixed rate that won’t change during the tenure of your contract. These plans range from 12 to 48 months and typically offer the lowest rates out of any type of plan.

Variable-Rate Plans

Variable-rate plans are where your electricity rate changes from month to month, depending on the status of the electricity market. You might have a great price one month but be paying double the average electricity rate the next. They’re much less stable and more unpredictable than fixed-rate plans.

Prepaid Plans

As the name indicates, prepaid electricity plans are where you pay for electricity at the beginning of the month before using it. While prepaid plans don’t have tiered rates, they typically have a higher overall rate because of how the plan is structured. Prepaid plans are also monthly, which means they are unstable and need to offer better perks or rewards.

Flat-Rate Plans

The final type of plan in Houston is the flat-rate plan. Flat-rate electricity plans are where you pay the same amount for unlimited electricity usage no matter how much power you use. However, there’s a good chance you won’t get your money’s worth and end up overpaying for electricity.

What are the Different Types of Electricity Providers in Houston?

There are two basic types of electricity providers – retail electric providers and electricity concierge services. Electricity concierge services use your usage information and location to choose an electricity plan on your behalf. They handle signing up for the plan, monitoring the plan, and re-enrolling into it at the end of your contract or switching to a new one.

Retail electric providers, commonly known as REP’s, are the second type of electricity provider in Houston. Whether you deal with them directly or use a comparison tool or concierge service, the REP is the company that provides electricity to your home or business. REP’s purchase wholesale electricity from power-generating plants, sell it to you and work with utility companies to deliver electricity to your home.

While some electricity providers offer either renewable or traditional electricity, many offer the option of either one. In most cases, however, you’ll pay a slightly higher rate for electricity from a renewable energy source.

Who is the Best Electricity Provider in Houston?

Now that you know the different types of plans, companies, and rates available, let’s look at some of the best electricity providers in Houston. ElectricityRates.com looks at 20+ data points to identify who we consider best for the customer’s best interest. The following providers take the top spots in Texas for 2023 across five categories:

• Best Overall Provider: TXU Energy
• Best Green Electricity Provider: Rhythm Energy
• Most Charitable Provider: Good Charlie
• Most Innovative Provider: OhmConnect
• Best PrePaid Electricity Provider: Payless Power

As we said before, there are more than 100 electricity providers in Houston, and they’re all very competitive with one another.

While these are some of the best electricity providers in Houston, choosing the top dog takes a lot of work. This is especially tough because the best electricity provider for your neighbor might not be the best provider for you. It all depends on your living status, the size of your household, the size of your home, how much electricity you use per month, and your energy preferences. Therefore, Houston’s best electricity provider varies from person to person.

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How to Choose the Best Electricity Provider in Houston

If you want to choose the best electricity provider in Houston for your needs, enter your ZIP Code into the free rate comparison tool at the top of the page. ElectricityRates.com will then compile a list of all the plans available in your area, starting with the best option. Here’s how it works.

• Find out how much electricity you use on average each month.
• Our intuitive search engine shops for the best rates based on your exact home address, location, home size, and actual usage.
• A list of all the electricity companies in your area will pop up, giving you a personalized list of plans tailored to your home.
• You can go through the list of plans and check things such as the listed rate, the tiered rates based on usage, your estimated bill, the REPs reputation, hidden fees, perks and benefits, and anything else you need to know about the plan.
• Once you find your plan, you can select it and enroll immediately.
• There won’t be any service interruptions while we switch you from your old plan to the new one.

ElectricityRates.com is the quickest and easiest way to compare rates until you find the best electricity provider in Houston. While it will be up to you to research each plan and find the one that fits your lifestyle the best, we make it as easy as possible.

ElectricityRates.com Houston, TX Location

• Address: 4201 Main St Suite 200, Houston, TX 77002
• Phone: (832) 476-8721