Best Electricity Providers in Texas

Best Energy Providers in Texas for 2024

We researched the top energy providers in Texas to help you find the company that is perfect for you.
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Anna Grisham - GridHacker
Written By:
Anna Grisham
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Thad Warren - GridHacker
Thad Warren
May 21, 2024

To help you find the best energy provider in Texas for your situation, GridHacker's editorial team analyzed some of the largest electricity providers in the state by market share. We selected companies that provide lower-than-average rates, offer significant discount opportunities, and hold high customer satisfaction ratings from the Public Utility Commission of Texas. While the rates change daily and the best plan will differ for each person, our in-depth analysis will help you find exactly what you’re looking for.

Best Texas Energy Providers

The average electricity bill in Texas is $155.38 based on data from the Energy Information Administration. Your electric bill will vary from this based on the size of your home, energy usage habits, electricity rate, and other factors. Hence why taking time to find the best electricity provider is an important part of the shopping process.

The best electricity providers in Texas are likely to have competitive rates but also stand out in other areas like customer service, customer satisfaction, and ancillary services. For example, Good Charlie is a relatively small energy provider but offers a unique free add-on service: free pet insurance.

Since everyone's needs and wants differ, it's difficult to name a one-size-fits-all choice for the best energy provider in Texas. Instead, we will present you with energy companies that have outstanding customer service scores and competitive rates for a variety of use cases.

Remember, electricity is a commodity. The electricity you get from one provider is no different from the next. And since your utility company takes care of the transmission and delivery of the power to your home, that isn't an issue either.

The Best Electricity Companies Texas Has to Offer:

Here are our top choices for the best Texas energy providers:

GridHacker Rating:4.6
PUC Registration:  #10027
GridHacker Rating:4.6
PUC Registration:  #10262
GridHacker Rating:4.6
PUC Registration:  #10323
GridHacker Rating:4.5
PUC Registration:  #10308
GridHacker Rating:4.5
PUC Registration:  #10260

How to Find the Best Electricity Provider in Texas

When comparing retail electricity providers there is a lot to think about. There is more to look at than just the advertised electricity rates.

Here are common things you should consider when comparing electricity plans and electricity companies.

  • Does the plan have a fixed rate? Some plans have what is called a variable rate or index rate. This means that the rate you sign up for may change each month. This is a common problem for people who sign up for month-to-month electricity plans. They think they are getting a good deal only to find out the price per kWh skyrocketed in month two of being a customer.
  • Are there time of use conditions? Plans that advertise "free nights" or "free weekends" are called "time of use" plans. These plans generally advertise a lower rate. This is a blended rate based on given usage during the "free" usage time and the paid usage time. But if you look under the hood, you will see that the actual rate you pay for electricity is usually very high, often 20¢ or more per kWh. But the plan is still advertised with a lower rate, say 14¢. These plans can be great for the right person, but for most people, it's just a gimmick. One common plan that works like this is the TXU Free Nights and Solar Days plan. You can read our review of this plan in more detail here.
  • Always check the EFL! The electricity facts label or "EFL" for short acts like a nutrition label for the plan. It will give you a quick summary of the electricity plan and important terms in the contract like early termination fees, if the plan uses renewable energy, and other info for the electricity provider behind the plan.
  • Know your energy usage! You don't need to memorize how many kWh you use in any given month, but when comparing retail electricity providers you should check your usage and make sure it aligns with your electricity plan. Most electricity providers have rate structures for 500, 1,000, and 2,000 kWh of usage. So, a plan that works for a small studio apartment may not work for a large two-story home with a pool. (Don't worry, our platform will automatically retrieve your energy usage from your utility company so that you can compare easily.)
  • Compare electricity rates thoroughly! If you have made it this far, congrats! You are on the right path. Finding a good electricity plan in Texas is not hard if you take some easy steps to make sure you compare electricity rates effectively. GridHacker makes the process even easier by filtering out all the gimmicks and sales jargon electricity companies use to trick you into expensive plans.

What to look for

When you are comparing Texas electricity providers you should always check a few things about the provider before enrolling. Here's a quick checklist you should keep in mind:

  • Look for electricity providers with good customer reviews. Check Google or our electricity provider reviews if you aren't sure.
  • Is the provider in good standing with the Better Business Bureau?
  • Always look for fixed-rate plans.
  • Does the electricity plan have a rate structure that fits your energy consumption patterns?

What to avoid

Not all Texas electricity providers have your best interest in mind. Before you enroll in an electricity plan make sure to avoid these top complaints, tricks, and gimmicks.

  • Avoid bill credit plans! These plans offer incentives based on usage. They sound great on paper but one of the biggest complaints we hear about in Texas is these types of plans. The advertised rate is more often than not much lower than what you end up paying.
  • Plans with excessive early termination fees. Most plans have early termination fees. These vary from $50-$250 in most cases, but there are some electricity plans that will have fees that can cost up to several hundred dollars. If that is the case for any of the electricity plans you are considering, it's in your best interest to avoid them. You never know what may happen. You might need to cancel. And another thought… if the plan was good for the customer, why would the electricity provider try to price gouge you for canceling?
  • Avoid variable rate plans. Most people don't want surprises on their electric bill. When you have a variable rate, what you pay for electricity fluctuates.

Frequently Asked Questions about Texas Electricity

Texas electricity rates can fluctuate due to a variety of factors. The primary reason for an increase in rates could be changes in the wholesale electricity market, where the price of electricity is influenced by supply and demand. In Texas, demand tends to rise during extreme weather conditions, such as hot summers, leading to higher prices. Additionally, increases in fuel prices (like natural gas, which fuels many power plants in Texas) can also drive up electricity rates. Regulatory changes and infrastructure investments might also impact costs, which are passed on to consumers. Finally, fixed-rate plans expire and if you signed up during low-rate periods, renewing or switching plans might lead to higher rates as market conditions change.

Identifying the cheapest electricity provider in Texas can vary depending on your specific location, usage patterns, and the type of plan you are looking for. Rates can differ significantly across different areas and providers due to regional transmission costs and the competitive nature of the Texas electricity market. To find the most cost-effective provider for your needs, consider using an online comparison tool like GridHacker, which allows you to input your zip code and usage to compare current rates and plans offered by various providers in your area.

Switching electricity providers in Texas is a straightforward process, thanks to the deregulated market:

  1. Review Your Current Contract: Check your current electricity contract for any terms regarding early termination fees.
  2. Compare Plans: Use our marketplace to compare different electricity plans and providers based on your location and electricity usage habits.
  3. Select a Provider: Choose a provider that offers the best rates and terms for your needs.
  4. Sign Up: Complete the sign-up process with the new provider. GridHacker will handle the hard part of getting the paperwork done for you. The new provider will coordinate the switch on your behalf.
  5. Switching Process: The actual switch should occur without any interruption to your service. The only change will be your new provider and potentially different rates and billing.

To find out who your current electricity provider is, you can check your most recent electricity bill, which should list the name of your provider and contact details. If you don’t have access to a bill, you can call your local utility (the company that maintains the electrical infrastructure in your area), such as Oncor or CenterPoint, and ask for this information. Your utility company can tell you which retail electricity provider you are currently billed through based on your address and meter number.

All Texas electricity providers must acquire a license from the Public Utility Commission of Texas (PUCT). The PUCT requires energy providers to follow strict guidelines to maintain their licenses.