When should you shop around for electricity in Texas?

Texas is unique not only for its cowboys, ranch life, and barbecue, but also for its deregulated energy market. Deregulation has brought with it higher competition amongst the over one hundred retail energy providers (REPs) that are available to Texan homes and businesses, driving down prices across the various energy plans that you can choose from. For this reason, the temptation to shop around is always looming, but it’s important to be strategic when going shopping and learn when the best times are to search for an electricity plan.

Why does timing matter?

Timing is everything, as the age-old adage goes, and the same applies to energy. For one, seasons are big contributors to energy rates. In hot Texan summers, electricity demand is understandably high, with the need for homes and businesses to keep their cool with air conditioning on day and night. This higher demand during the heat of the summer drives prices up across the board, so summertime is not always the best indicator of a competitive energy plan when shopping around for REPs.

Significant events have significant impacts

While the changing seasons have regular impacts on energy rates, significant events that may occur around us, like hurricanes, oil spills, or even international events like wars, can also significantly impact rates and drive prices up. This is because these events can disrupt the availability and supply of electricity. Unfortunately, these types of events are much more unpredictable so it can be harder to plan around, but may explain when you see higher than expected costs – something to think about if you’re in the process of shopping for a plan.

Take note of your contract expiry

Because energy rates are consistently high in the summer, it can be really helpful to be aware of when your current energy contract is set to expire. If your current plan’s expiry date is due for some time in the winter, it may be a lot easier to find an energy plan with a competitive rate when comparing REPs.

Tips for shopping around for an energy plan

  1. If your energy rates have spiked outside of peak season or without any significant event, consider beginning your search.
  2. Ask to see your REP’s year-round energy schedule to determine when to expect rates to increase.
  3. Set your energy contract to expire in the winter. Make sure you’re not stuck in a contract with a provider that can raise rates indiscriminately. As the customer, your business is always valued. 

This is precisely Arrow Energy’s philosophy. We aim to empower our customers to help them make the best and most sustainable choices that work for them, whether their goals are short-term or longer term. If you have any questions about REPs and energy rates at peak or off-peak times, Arrow Energy is here to help.