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How to Find the Best Electricity Providers in Houston

Updated: 01/04/2023

If you’re searching for the best electricity providers in Houston, you've come to the right place. Choosing the right electricity company could mean the difference between $100 electricity bills and $300 ones. Therefore, it's a good idea to use every tool at your disposal when choosing your electricity provider, and that's where ElectricityRates.com comes in. Enter your zip code in the free rate comparison tool at the top of the page to get started.

ElectricityRates.com is an online electricity comparison tool that helps you choose the right provider for your needs. We help you understand all aspects of signing up for an electricity contract including the fine print, perks and benefits offered; and everything else there is to know about a prospective electricity company.

Why are There so Many Houston Electricity Providers?

If this is the first time you've had to choose an electricity company, you're probably blown away by how many choices exist. Currently, there are more than 130 retail electric providers in Texas, and many of them are available in the Houston area.

However, the reason there are so many Houston electricity companies is because of deregulation. Deregulation took place in the early 2000s and effectively turned electricity in Texas into a competitive market where it can be bought and sold as a good. Because of this, dozens of new retail electric providers (REPs) entered the competition.

REPs purchase electricity from power-generating plants and sell it to residential and commercial customers throughout Texas. Although they aren't responsible for creating or delivering electricity to your home, REPs are the company that you purchase electricity from and to whom you pay your monthly power bill.

Who is the Cheapest Electricity Provider in Houston?

Because of how volatile electricity rates are in Houston, and how many different companies there are, it's tough to say who the overall cheapest electricity provider is. On average, Gexa Energy and Frontier Utilities have the lowest listed rates. However, before you jump the gun and enroll without a second thought, there's more to electricity plans than the listed rate.

While looking at the electricity rate is a good place to start, there's much more that you should consider when making your choice. It's important to look at the Facts and Labels Sheet, which holds the fine details of the electricity plan. It's also important to look at the list of perks and benefits and if there are any hidden fees involved with the plan.

It's also important to look at how the electricity plan is set up. For example, many electricity companies in Houston have their listed rate based on using 1,000 kilowatt-hours of electricity per month. However, you’ll pay a different rate if you use less than 1,000 or more than 2,000. Here's an example from a real electricity plan in Houston.

While the listed rate on the plan is 14.2 cents/kWh, you'll only pay that amount if you use between 1,000 and 2,000 kilowatt-hours per month. If you use less than 1,000, you'll pay 24.7 cents/kWh, and if you use more than 2,000, you'll pay 19 cents/kWh. Therefore, it's important to know the fine details and pricing structure of an electricity plan before enrolling in one.

What are the Average Electricity Rates in Houston?

Currently, the average electricity rate in Houston for commercial electricity is 13.3 cents/kWh. The average commercial electricity rate is much lower at 9.9 cents/kWh. The reason that commercial rates are lower is because of the sheer amount of power that businesses use.

While 13.3 is the average residential electricity rate, you can spend even less when you use ElectricityRates.com to find your Houston electricity plan. Simply enter your zip code into the free rate comparison tool at the top of the page to get started!

Who Provides Power in Houston?

While REPs are the companies from whom your purchase electricity, they aren't the companies that actually provide it to your home. The job of delivering electricity to homes and businesses falls to the local Transmission and Distribution Utility companies, also known as TDUs. The primary TDU in Houston is CenterPoint Energy.

While you're allowed to choose your retail electric provider, you don't get to choose your TDU. However, each of the TDUs that operate in Texas, including CenterPoint Energy in the Houston area, are competent entities that do excellent work.

Who are the Top Electricity Companies in Houston?

As we said before, there are more than 100 electricity companies that provide power to Houston and the surrounding area. The best way to narrow down your search is by using ElectricityRates.com, which does an excellent job of laying out all the details of various plans available in your zip code.

While there are more than 100 REPs to choose from in Texas, here are some of the top options.

How to Find the Best Electricity Provider in Houston

If you don't know by now, the best way to find an electricity provider in Houston is to use ElectricityRates.com. Unlike other online comparison tools, we don't pick the company for you. We believe that you know what your needs are better than anyone, so we simply want to provide you with all the details you need to make an informed decision. Here's how the process works.

    • 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 pertaining to the plan.
    • Once you find the plan you like, 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.

When it comes to choosing the best electricity plan in Houston, ElectricityRates.com is the way to do it.