Month-to-Month Electricity in Houston: Is It Right For Me?

At ElectricityRates.com, we understand that life is full of uncertainty and unforeseen changes. As such, electricity plans are never one-size-fits-all, and it’s best to have multiple options to choose from. Therefore, even though fixed-rate electricity plans are the most popular type of plan in Texas, they are only right for some.

In this article, we’ll explore an exciting new idea known as month-to-month electricity. While month-to-month plans have been around for a while, they’re starting to pick up steam and become more popular than ever. If you’re curious and want to know more about these types of plans and whether or not they’re right for you, read on! Or, you can enter your ZIP Code in the free rate comparison tool to find the best month-to-month plans near you!

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What is Month-To-Month Electricity in Houston?

As the name implies, month-to-month electricity is where you sign up for an electricity plan on a monthly basis. These electricity plans operate monthly and don’t require you to sign a long-term contract. Instead, you can choose a month-to-month plan at the beginning of August and sign up for a completely new one in September, October, and so on.

Different Types of Month-To-Month Electricity Plans in Houston

All month-to-month electricity plans in Houston and the surrounding area share the same core feature of only lasting for a month at a time. However, within that metric, there are two different types of month-to-month electricity plans to choose from.

Variable-Rate Electricity Plans

The comparison of variable and fixed-rate electricity plans is similar to how variable and fixed-rate mortgages work. With a fixed-rate plan, you sign a long-term contract, and your rate doesn’t change for the duration of the contract. With a variable-rate plan, however, your electricity rate can fluctuate monthly.

Because of how volatile variable electricity rates can be, companies don’t require you to sign a long-term contract. Instead, you decide at the end of each month whether or not you want to re-enroll in the plan or find a new one.

Prepaid Electricity Plans

Next up, you have the option of choosing prepaid month-to-month electricity in Houston. As the name implies, prepaid plans are where you pay for electricity at the start of the month rather than at the end, which is the typical method. You don’t have to sign a long-term contract with prepaid plans; you can choose a new one at the end of each month. The Texas Public Utilites Commission (PUC) has outlined a series of frequently asked questions about prepaid electricity.

Advantages of Month-to-Month Electricity in Houston

Now that you have a better idea of what month-to-month electricity in Houston looks like, let’s examine its advantages.

No Credit Check

If you have bad or no credit, a month-to-month electricity plan might be your only option. Prepaid month-to-month electricity plans don’t require a credit check because you’re paying for electricity before you use it. Therefore, the power company isn’t taking on any liability and doesn’t need to pull your credit report. You will, however, have to pass a credit check if you want variable-rate electricity since that’s a post-pay plan.

No Down Payment

Additionally, most prepaid and variable-rate electricity plans don’t require a deposit or down payment since the plan is offered on a monthly basis.

The Chance to Save Money

One of the biggest reasons that variable-rate electricity plans tempt people is the allure of saving money. Variable-rate electricity is like playing the stock market. There’s a chance that rates will dip, and you’ll save a ton of money on electricity. However, there’s also the possibility that rates will rise, and you’ll end up overpaying.

More Flexibility

Finally, the main reason people turn to month-to-month electricity in Houston is because it offers flexibility. Month-to-month electricity gives people an alternative if they want to avoid signing up for a long-term plan. Whether it’s because you plan to move soon or simply don’t understand the market well enough, month-to-month electricity is an excellent alternative to long-term fixed-rate plans.

Disadvantages of Month-to-Month Electricity in Houston

Although month-to-month electricity in Houston has several advantages over traditional plans, it also has a few disadvantages.

More Expensive

The most significant disadvantage of month-to-month electricity in Houston is that 9 times out of 10, it’s more expensive. Sometimes, when power rates unexpectedly drop, you could save money on month-to-month electricity. In most cases, however, electricity rates rise rather than fall, especially in our current economy. Therefore, if you’re signing up for month-to-month electricity to save money, expect to be disappointed.

Fewer Rewards

Another monetary and material disadvantage of month-to-month plans is that they offer fewer rewards. Electricity companies reward and entice customers when they sign up for long-term plans, as with fixed-rate options. Therefore, signing up for a prepaid or variable-rate plan makes you less likely to receive discounts, benefits, gifts, and other incentives.

Less Stability

Finally, by their nature, month-to-month electricity plans are far less stable than long-term fixed-rate ones. While some people like shopping around for a new electricity plan every month, it can quickly become a headache.

Is a Month-to-Month Electricity Plan Right For Me?

As you can see, there’s a big difference between traditional fixed-rate plans and alternative month-to-month ones. It might be right for you if you like the flexibility and freedom that a month-to-month plan offers. After all, you can always switch providers and find a new long-term plan if you get tired of finding a new one each month.

Additionally, month-to-month electricity is great if you just moved to Houston and don’t have a good handle on the electricity market. They’re also great if you plan to move in the next several months because most long-term plans require a commitment of at least a year.

How to Get the Best Month-to-Month Electricity in Houston

If you’re looking for the best month-to-month electricity plans in Houston, enter your ZIP Code into the free rate comparison tool at the top of the page. Once you do that, we’ll compile a list of your area’s best month-to-month and fixed-rate electricity plans. After you find your preferred plan, you can sign up for it directly through our website. We make finding the right electricity plan as quick and easy as possible.

Whether you prefer month-to-month or fixed-rate electricity, choose your plan using ElectricityRates.com. We’re one of the top electricity comparison services in Dallas and the surrounding area and are sure to find a plan that meets your needs. We can help you find the best electricity plan in your area, regardless of what type of plan you’re looking for.

In addition to the rates of a given electricity plan, we display any hidden fees, tiered rates, benefits, and other information about the plan. You can rest assured that you’re getting all the information you need to make the right decision when you trust the pros at ElectricityRates.com.

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