Texas Electric Customers: Why You May Be Paying More Even as Prices Go Down
Remember a couple of years ago when gas prices were $4 and $5 per gallon. We understood this when the price of a barrel of oil was escalating at the same time. But, as oil prices came down and gas prices stayed the same – and in some case kept going up – it left many consumers scratching their heads, exclaiming . . .
“Why is the cost of gas so high when the price of oil is going down?”
Makes no sense, right?
Well, this helps to explain why you may be paying too much for electricity, even as the price of natural gas – which powers most of Texas’ electricity – goes down.
Texas deregulated its electricity market in 2002, which caused many new energy companies to come on the scene and vie for consumer business. While some electric suppliers lure customers with initial discounts, many don’t. They may offer a high rate in hopes that you’ll take it. And many customers do. Why?
Because they may be disgruntled with their current electric company. Or, they may be moving and instead of paying a required deposit, they’ll sign up for a prepaid electric service account. These types of accounts routinely cost consumers more than a traditional electric service plan.
In fact, say energy experts, prepaid electric service account holders pay on average of two to three times what other consumers are paying per month. So even though Texas electric rates may be going down, you may still be paying a higher rate.
To ensure that you don’t, do some comparative shopping. Conventional electric companies have many plans to assist consumers in lowering their monthly electric bills, like Texas’ LITE-UP program. It offers discounts to consumers five months out of the year. Ask your current electric provider for qualifying details.
Why are Texas Energy Companies Wanting Large Deposits?
Why Such a Large Deposit?
If you have been watching the news you may have seen that one reason we are having a down turn in the economy is because of what is referred to as the “credit crisis” Many financial companies that loaned money so people could buy a house have been going out of business or are being bailed out by the government. These same financial firms also give credit for financial transactions involved in the buying, hedging, and selling of electric service. It is a complicated process to buy an energy commodity, have money set aside for hedging and then selling that energy to a credit worthy customer. Not only does the electric service customer have to be a good credit customer but the energy company has to have good credit to get good financial terms on money borrowed to hedge energy contracts.
TXU Energy and Reliant Energy Deposits
Texas Electric companies like TXU Energy or Reliant Energy are not trying to stick it to you when they turn you down for electric service unless you pay $200 – $800 as a deposit. If you still owe money to another Texas electric provider you may find it almost impossible to switch electric service to a new provider. In the case you find yourself in a bit of a credit crunch where the deposit is just way too much for you to come up with immediately yet you need to move in to your new place right away and be guaranteed that the lights will be turned on there is really just one recommended option.
Our Recommendation for Avoiding and Waiving Electric Service Deposits
We recommend you try this no deposit and low deposit offer with Bounce Energy. This company will get your service turned on right away and they offer low and no deposits to turn on electricity service based on credit score. The only requirement is that you have a valid credit card. The first few months the electric rate with Bounce Energy will be on the low side and will remain a low fixed rate the entire duration of the contract. Right now the rate is around 10.8 cents a kWh. If you pay your bill on time you will build up a history of credit worthiness, Bounce Energy as well as other electric companies will no longer ask you for a deposit once you have stablished yourself as a good paying customer. Bounce Energy will guarantee there will be no deposit based on credit score and if they need a deposit it will be on the low end of the spectrum. Bounce can insure you get your lights turned on right away, and they will offer you a cheap electricity rate along with no deposit or atleast a low deposit amount. This is a great deal especially because they reward good paying customers. You won’t find another electricity plan out there put together as well as this.
You can learn more about Bounce Energy by clicking here. Be sure to ask about their “No and Low Deposit Plans”
You can call them at 1-866-945-8937
Learn about no deposit electricity options in other states. Pennsylvania
What No Deposit Electric Choice is the Best Option?
Credit Check Process
When trying to sign up for residential Texas electricity service with the main goal being to avoid a deposit you only have a few different options. Unfortunately you can’t find out ahead of time from most providers if they will need a deposit because they need to first check your credit. Some Texas electric companies have this credit check process automated. You enter your name and address and some additional information like social security number or drivers license number and they quickly check an online database to see if you pass their credit threshold.
Credit Scores and Passing Credit for Electric Service
An electric provider may have a policy that anyone that is between 550 – 600 in a credit score must pay $200. A different electric provider may want $300 and yet a 3rd provider may want as much as $500 – $700 as an upfront deposit amount in order to turn on your Texas electric service without paying a deposit. These same Texas energy providers may have a completely different set of criteria if you are between 650 – 750 on your average credit score. In this scenario half of the electricity providers might pass you on credit without the need to pay a deposit while the other half will still want at least $100 as a deposit amount unless your score is over 700.
Sign up First and See if a Deposit is Needed
Unfortunately you have to sign up for their Texas electricity service first before these electric companies can tell you if they will need a deposit. If you already know your credit is terrible and you already know that you do not wish to pay a $200 or more deposit amount there are a few other options to avoid a deposit. You can sign up with a prepaid electricity provider. This company will come out to your facility, home or apartment and install a prepaid electricity meter. You then charge up a card to prepay for electric service and they then allow the electricity to be delivered to your home. The issue is that many people have complained that the prepaid Texas electricity prices are too high and if late on a bill the prepaid company will turn off electric service too soon before proper notice has been given.
Is Prepaid Electricity Service a Good Option?
A different choice besides going the prepaid electric service route is to sign up on a no deposit guaranteed electricity provider. By choosing a no deposit electric company you can reestablish yourself as a reliable electricity customer that pays their bill on time. The rate is a little higher then normal the first 3 months but if you pay your bill on time the first 3 months the no deposit Texas electricity company will proactively lower the electricity rate to their lowest available choice. The trick is to conserve energy those first three months as you establish yourself as a good paying customer. Even though the electric rate is a little higher it will not be that bad if you try not to use that much energy those first 3 months. After your rate has been lowered to the lowest electricity rate plan your rate is affordable enough to not have to worry about conserving energy as much and you can feel secure that you are on a Texas electricity rate that is low like someone with a good credit score. This no deposit guaranteed choice is basically a second chance for those with no credit or less then perfect credit.
Learn More about No Deposit Electricity in Texas
You can learn more or sign up on a no deposit Texas electricity rate by clicking here to continue.
No Deposit Electricity
You can now sign up for a no deposit electricity plan with a company by the name of Bounce Energy. The way Bounce Energy can guarantee you will not need to pay a deposit is by fashioning an electric rate that is a little higher then usual for the first 3 months. Not to worry as the higher priced electricity rate is only for 3 months provided you pay your electric bill on time during those 3 months.
Once you have paid your electric bill on time for 3 months you will be proactively moved down to Bounce’s lowest priced electricity plan that they offer. This is an easy way for those with little or no credit to get electric service turned on in their name and avoid a large deposit. Many Texas electricity companies want you to pay $300 – $500 up front for them to turn on electric service in your name. This is just too much money for most college students.
BY signing up on Bounce’s no deposit electricity plan you can establish some credit and a track record of paying your electric bill on time. The 3 months will be over soon and then Bounce will lower your electric rate to their lowest priced option. They call this electric plan the “Fresh Start Plan“. You can sign up with Bounce on their Fresh Start Plan here: