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Are Cheap Electricity Plans in Houston a Good Choice?

Updated: 01/04/2023

In addition to being one of the biggest and most populous cities in Texas, Houston also has more REPs than anyone else. As the country’s energy capital, Houston is a popular hub for retail electric providers, gas companies, and energy companies. Houston is also one of the most expensive cities in Texas regarding living expenses and housing.

Because of how expensive it can be to live in Houston, it’s essential to save money on your electricity plan. The best way to do this is by enrolling in a quality, fixed-rate electricity plan that fits your electricity usage and needs. With dozens of electricity companies in Houston and hundreds of plans, choosing the right plan can take hours of time.

By using ElectricityRates.com, you can quickly compare all the electricity plans in Houston until you find the cheapest one saving you time and money along the way. To get started, simply go to our free Rate Comparison tool at the top of this page.

How Many Electricity Providers are There in Houston?

There are more than 120 retail electric providers in Texas, and many of them are headquartered in Houston. However, not all parts of Houston are serviced by the same REPs.

In 1999 deregulation turned the electricity market in Houston into a competitive one where residents have the power to choose their own electric provider. ElectricityRates.com can help you determine which REPs are available in your part of Houston and their best rates with our personalized shopping experience that is tailored to your specific home address.

Which Companies Have the Most Affordable Electricity Rates in Houston?

Because of Houston’s many different electricity companies, it’s tough to say which one is the cheapest. It’s also tough to choose just one affordable electricity company because the cheapest company for your neighbor might not be the cheapest company for you. The same company isn’t the cheapest for everyone because electricity plans have tiered rates.

With tiered rates, your rate gets determined by how much electricity you use. For example, let’s say you sign up for an electricity plan with a rate of 15 cents/kWh. However, this rate is likely based on using either 1,000 or 2,000 kilowatt-hours of electricity. When you use more or less than the amount that the rate is based on, you’ll end up paying a higher rate. Here’s how it works.

As you can see, if you use less than 1,000 kilowatt-hours of electricity, your rate will jump to 22 cents/kWh. If you use more than 2,000 kilowatt-hours, your rate will jump to 18 cents/kWh. You’ll only pay 15 cents/kWh if you use between 1,000 and 2,000 kilowatt-hours. For that reason, it’s vital that you know your average monthly usage and select your electricity plan based on that fact.

Is Cheap Electricity the Only Thing to Consider?

While saving money on your electricity plan is important, there’s more to consider than the rate alone.

The Rating of the Company

The company with whom you’re enrolling is just as important as the price and quality of the plan itself. To assist Houston residents with understanding what REPs are the best ElectricityRates.com has researched and rated the best Texas Electricity Providers based on product offering, customer support, and business standing.

Hidden Fees

One of the sneakiest ways electricity companies make extra money is through hidden fees. Although they advertise cheap electricity rates, it’s easy to overpay if you’re unaware of their hidden fees. Some of these fees include delivery fees, monthly service fees, early cancellation fees, upcharge fees, and tiered rates.

Additional Perks

In addition to an electricity provider’s reputation and fees, you should also look for companies that may offer incentives and rewards when you sign up for one of their plans.

Certain companies will offer discounts, free electricity usage on nights and weekends, a free smart home thermostat, gift cards, and more. The best way to find out if the incentives and rewards are worth it is with ElectricityRates.com. We lay out all the information you need about Houston electricity plans to choose the best one in the long run.

How to Find Cheap Electricity Plans in Houston

Even if you know the type of plan you want, the benefits you’re looking for, and the type of company you want to enroll with, the hard work is just beginning. If you live in Houston, finding the best electric company can be difficult; you have dozens, if not hundreds, of electricity plans to sift through. That’s where ElectricityRates.com comes in.

We’re an electricity plan comparison company, and our goal is to make finding your next electricity plan as easy as possible. We offer a personalized recommendation tailored to your home’s usage needs to help you compare Texas electricity rates and find a plan that fits you. We lay out each of these plans in a way that’s easy to understand, making it easier for you to make the right choice.