Everything You Need to Know About Texas Energy Choice
You might have heard of energy choice… but what does it mean? The short version? You've got the power.
In 2002, the energy market in our state was deregulated, doing away with the monopoly that electric utilities held over the energy supply and giving the power to Texans to choose their own retail electric provider (REP). Today, around 75% of Texans have energy choice. In this article, we’ll get into the details and what they mean for you.
Texas Energy Choice Benefits
Because you are no longer forced to buy electricity from a monopoly, you have multiple options available. While still delivering reliable energy, REPs must compete for your business, which brings down the cost of electricity and encourages innovative plans and improvements in customer service.
Which Areas in Texas Have Energy Choice?
Around 15% of Texans, about 5.1 million people, live in areas where electricity is still regulated and managed by the Texas Public Power Association (TPPA).
What Happens If I Don't Choose an Electricity Provider?
If you don’t select a REP, you’ll be assigned one by default. This provider may sign you up for a month to month plan, which can be more expensive than a fixed rate plan and even have rates that change every month.
How Does Energy Choice Impact My Electricity Bill?
With energy choice, you are able to search for the best price and plan, and so potentially lower your electricity bill.
Selecting a Texas Electricity Provider
So how do you choose from among the many REPs in our state? In your service area, there may be dozens who offer service, competing for the right to call you a customer. To make a smart decision, consider your priorities. For example, you might want a predictable bill every month, or would you rather have a plan that calculates what you pay based on usage (giving you the power to reduce your energy use and so your bill). You might want 100% renewable energy. For a deep dive into how to select a REP based on your priorities, read our article on Texas Electric Companies.
It’s important to note that electricity rates vary from plan to plan. When you are making a comparison, take a look at the electricity facts label (EFL) for each one, as it will provide important information such as the cost of energy, the length of the contract, and more.
How Do I Switch Providers?
You can choose and enroll in a plan that suits your lifestyle and your budget, and the switching process is simple: all you have to do is sign up with your chosen REP, and they’ll handle everything. In fact, most switches take place in three business days.
Are There Any Fees for Switching Providers?
It’s best to switch REPs and plans at the end of a contract, so you don’t pay an early termination fee. However, note that some REPs will offer credits to offset that fee, in order to win your business. You may also qualify for an exception to fees, for example if you are moving. According to the Texas Administrative Code, you can switch electricity providers without a penalty if you are moving.
At Rhythm Energy, we stand out by offering a 30 Day Test Drive. Try our plans risk free for a month, and if you aren’t satisfied, cancel within 30 days without any early termination fees.
Are There Any Risks Associated with Energy Choice?
As is the case with any open market, there can be risks to energy choice. The price of energy can be volatile, going up and down based on factors such as demand and severe weather. You should also watch out for misleading marketing gimmicks. Just be sure to read the fine print on the EFL for any plan that you are considering.
How Does Energy Choice Affect Power Outages and Reliability?
The short answer? It doesn’t. In Texas, reliability is regulated by the Public Utility Commission (PUC), which oversees the electric grid and ensures that all providers meet high standards. In other words, all REPs must follow the same regulations and requirements.
Providers also share the same Transmission and Distribution Systems: no matter which REP you choose, your electricity will be transmitted along the same infrastructure, and your provider has no control over these systems. REPs also work collaboratively to restore service during an outage. So even if your provider is experiencing challenges, they will work hand in hand with other REPs to get your service back online.
What Consumer Protections Are in Place for Energy Choice Customers?
State law enshrines protections for consumers in areas with deregulated energy, including the right to choose your REP, transparency about fees and rates, and protection against deceptive and discriminatory practices.
How Can I Find Reviews and Ratings for Electricity Providers?
Power to Choose
The official and unbiased electric choice website of the Public Utility Commission of Texas, this site lists plans from competitive REPs. Simply enter your zip code, then filter plans based on your priorities.
SaveOnEnergy
An independent marketplace that allows you to compare plans from REPs like Rhythm Energy, Reliant Energy, Direct Energy, TXU Energy, and others.
EnergyBot
A digital marketplace designed to help you buy energy plans and make energy decisions. You can even use the platform to switch providers .
ChooseEnergy.com
An online portal that lets you enter your zip code to see the most up-to-date rates in your area, compare available plans, and secure the best electricity rate for your budget.
Energy Plans That Fit Your Priorities and Your Budget
At Rhythm Energy, we are committed to making your energy experience as easy as possible. Reliable service. Transparent pricing. The right plan to match your values. All powered by smart data, investing in local renewable energy, and with customer care that is available seven days a week. Visit gotrhythm.com and enter a zip code to discover what options are available in the service area.
FAQs
How do I compare retail electric providers?
You can start at an online platform like Power to Choose, in order to get details on what plans are available in your service area. Once you have selected options to compare, review the electricity facts label (EFL) for each to find valuable information such as the plan rate and terms of a contract. You can also read Google reviews from other customers; at Rhythm Energy, we’re proud to have thousands of 5-star reviews from happy customers.
How do I switch electricity providers?
When you sign up for a plan, let your REP know that you want to switch, and they will handle all of the details. Some providers will even give you a credit that will offset any early termination fees that you might be responsible for paying.
