Electricity Deregulation
Safety Net Providers of Electricity in Lubbock
The designation of safety net providers for businesses and residents in Lubbock, TX, was an important decision. If you do not choose a provider when the market opens up, you will be randomly assign a provider so that you are not left without power. Don’t wait! It can cost you!
Select Your Electricity Plan Before The Cutoff
Safety providers have been designated to keep your lights on and your heating or air conditioning running. The three companies selected by the Lubbock City Council (Reliant Energy, TXU Energy, Octopus Energy) are willing to accept an unknown electricity demand (how much electricity needed) and any number of customers at any given point. Consequently, their price for electricity will be higher and meant to be a temporary, short-term solution. It’s not even close to the best electric rate you can get when you solicit competitive pricing.
Many electricity providers say things like, “we know what it takes to service every meter” or “choose a provider and plan that suits your lifestyle.” The reality is that the best provider to fit everyone’s lifestyle is the electricity provider that runs most efficiently to offer the lowest fixed rate. If you choose any other type of plan, you are gambling with your electric bill, which is a significant portion of most businesses’ operations or your house’s utility bills.
Ask any provider why they think people or companies need a unique plan, and you will not get a concrete answer. Some ask you to think about the way you use energy for your business or they way you use electricity in your home. For businesses, load factor (max amount of electricity you may need at any given day/time) has an impact on pricing, but there is no other variable other than that. And there is definitely no other factor other than the best price of electricity for home owners or best electric rate for business.
GET THE BEST ELECTRICITY RATE
When you decide to select an electric company, electricity providers will compete to offer a lower price to us because they know they are competing for your business. This drives your price down!
Switch Away from Safety Net Electricity Providers
If you’re assigned a default provider, you can change to another plan or provider without penalty. There are over 100 REPs in Texas and at least 30 offering electricity plans in Lubbock. Some REPs are borderline deceptive with their marketing language and promotions. Others design plans that have hidden fees or are only available for a limited time for the first part of the agreement.
When choosing an electricity provider, it is important to compare prices and plans carefully. It is also important to read the fine print of any plan before signing up. It is tough for those of us in the industry to navigate and can be downright impossible for first timers.
Select an Electricity Provider… How do they Compare?
THE PRODUCT: ELECTRICITY
No Difference
Like most other commodities (energy, metals, etc), the electricity you buy and received is the same no matter who you buy it from.
Simple! Let’s get you the best electricity price.
CUSTOMER SERVICE
Some Difference
Most REPs have the same baseline customer service for customers. Some websites are easier to use than others and some REPs offer apps to manage your account. Like any other service or product you buy, check reviews from multiple sources.
PLANS & PRICING/RATES
BIG DIFFERENCE
REPs offer a variety of electricity plans: fixed-rate electricity plans, variable-rate electricity plans, market rate plans, and renewable energy plans. Be careful with variable rate or market rate plans. They can be risky. Fixed-rate electricity plans are recommended.
Why does one electricity company have a better rate than the next?
~ It boils down to how much electricity they buy in bulk, in advance. The more they buy, the cheaper it is.
~ Varying price models will charge customers that use a certain amount of electricity more than others.
~ How efficiently they run their company and the level of customer service impacts the price they can offer.
~ How much profit they want to make versus their competitors.