The Latin phrase “caveat emptor” translates to “let the buyer beware.” It dates to 1603. It was apparently relevant then and it is relevant today, especially when it comes to shopping for electricity.

Texas consumers searching for the best electricity plan are often met with a dizzying number of options and terms that have you reaching for the aspirin. You might see…

• Get Bill Credits
• Free Nights
• Free Nights and Weekends

and more.

A recent survey highlights the inefficiencies and gimmicks in Texas’ retail electricity market, where many customers mistakenly believe they are saving money on their plans. Despite marketing claims, plans like “free nights and weekends” and “bill credits” often cost significantly more—30% and 24% higher, respectively—than fixed-rate options, amounting to hundreds or even thousands of dollars in extra annual costs. Some providers use celebrity endorsements to promote these plans, which can add to consumer trust in them despite their flaws.  Experts advise choosing simple, fixed-rate plans over gimmicky, complex options.

Texans are encouraged to shop carefully when selecting a provider to ensure savings and avoid deceptive pricing practices.  Only 15% of Texans switched electricity providers last year, though switching could save an average of $192 annually.

When you are shopping for electricity plans, beware of confusing plans that will likely end up costing you more.  There are tips for finding the best rate, including reviewing the “average price” on your current bill and comparing it with the Electricity Facts Label of potential plans.  When looking at the EFL it is important to look at the different usage levels.  If the price per kWh varies greatly between usage levels that plan may end up costing you more in the long run since your usage will also fluctuate from month to month. 

Budget Power helps customers get great electricity rates without complicated pricing and confusing plans. Our team of seasoned retail electricity experts have been serving residential customers since the beginning of deregulation in Texas more than 20 years ago. Discover how Budget Power provides transparent, low-cost, no-gimmicks electricity plans and great service for its customers.

It does not have to be that complicated. At Budget Power, we only offer simple, easy-to-understand plans for consumers. Our goal is to provide affordable rates that won’t break your bank or your brain when you try to figure out what you will pay.