Ever wondered when the best time to shop and get cheaper electricity? We’ll break it down to you in simple terms.
Whether you’re stuck with high monthly bills or you’re a pro at understanding energy stuff, we’re here to tell you when you can snag the best deals.
Lock in a Contract
If you’re dealing with those monthly electricity bills that seem to be eating up your money, there’s a way out. You first need to make sure that you’re not in a monthly indexed or “holdover” plan. Locking in a fixed-rate contract gives you a set rate. And if you want to take it an extra step, pay attention to when rates are low – that’s when you should get a contract for even more savings.
Seasonal Price Changes
Think about the different seasons, like summer and winter. Well, guess what? The cost of electricity changes with the seasons too!
Imagine companies that sell electricity as the bosses of electricity. They decide how much to charge you based on things like how much they pay for electricity.
There are 2 factors that have a large impact on energy prices in Texas: natural gas, and the weather.
When it’s super hot outside, our demand and consumption increase, and the prices of energy increase along with it.
The Price Hike in Summer
Ah, summer – the time for fun in the sun, but also higher electricity bills. When the weather gets really hot, everyone turns on their air conditioners to stay cool. But that means a lot of people are using electricity at the same time. And when there’s more demand for electricity, the price goes up, just like when a popular toy is in high demand and its price goes up. So, during summer, you might see higher prices on your bill.
To illustrate this, look at the image above that shows the summer spike. Retail Energy providers sell more energy at higher prices each summer.
The Natural Gas Factor
Natural gas – it’s like the secret ingredient that makes a lot of electricity in Texas.
Usually, when things are normal, electricity prices follow the price of natural gas, which is often quite affordable.
But remember that summer we talked about? It messes things up a bit. Because of the high demand for electricity, we sometimes have to use more expensive methods to make it, like using coal, and that can make prices go up.
Making Smart Choices
Here’s where being smart about timing comes in.
Imagine you’re playing a game and you want to make your moves at just the right time. Electricity is kind of like that too. When prices are low, that’s when you should think about getting a contract for a longer time – like more than a year.
It’s like buying something you love when it’s on sale – you get a better deal. And when prices are being stubborn, you can go for shorter plans that have low fees for switching.
Check out live rates for the best deals.
Wrapping It Up
So, remember, it’s not just about looking at the calendar. You need to pay attention to what’s happening with electricity prices in the market.
From the busy summer times to the quieter ones, use these tips to be a smart shopper when it comes to electricity.