Compare Electricity Rates to Find the Best Energy Plan

Compare rates and the best energy plan

We’ll Show You How to Compare Electricity Providers, Rates, and Plans.

Before electricity deregulation in the late 1990s/early 2000s, everyone purchased all electricity services from their local utility. While this is still the case for many regions of the country, residents and businesses in deregulated service areas have other options…

In deregulated energy markets across the country this Energy Choice allows for licensed retail electric providers to purchase power on the wholesale market and supply it to consumers in Texas, Pennsylvania, Ohio, Connecticut, Illinois, New York, Massachusetts, Maine, New Hampshire, New Jersey, Maryland, and more.

But with an overwhelming number of energy options in the marketplace, how can anyone compare the hundreds of electricity plans found online?

At 5 Digital Energy, we’ve done the homework for you!

As your energy consultant, we are here to help you compare electricity prices and retail electric providers to ensure you have the best electricity plan for your business.

Criteria We Use to Compare Energy Companies

5 Digital Energy partners with reputable and well-known energy providers and utility companies so you can feel confident with your selection. Some of the criteria we use to evaluate suppliers include:

1. Value to the End User

The primary goal of our service is to deliver the best possible value to our clients. This means we carefully assess the energy prices offered by each supplier, looking at the cost per kilowatt-hour (kWh) offered by each retail electricity supplier. We consider how these prices compare with current market rates in deregulated cities like Dallas and Houston, to ensure our clients get competitive rates. We also factor in the presence of any additional fees, such as early termination fees, and whether these fees are fair and clearly communicated. By focusing on overall value, we help businesses and consumers find energy services that fit their budgets and meet their needs.

2. Ease of Customer Service

Excellent customer service is a hallmark of a reliable energy provider. We evaluate how easily clients can reach customer service representatives, the quality of support they receive, and how efficiently issues are resolved. Energy suppliers should provide straightforward enrollment processes and comprehensive support throughout the contract term. We look for providers who have robust FAQ sections on their websites, offer live customer support, and maintain clear communication channels. Companies that prioritize customer satisfaction are more likely to offer reliable and consistent energy services, which is crucial for business operations in cities like Dallas and Houston.

3. Financial Backing

Financial stability is a critical factor when selecting an energy supplier. We assess the financial health of energy companies to ensure they have the necessary financial backing to provide consistent service over the long term. This includes examining their credit ratings and the financial stability of the supplier. A strong financial foundation helps protect against disruptions in service and enables suppliers to offer more flexible contract terms, including prepaid options. By partnering with financially stable energy suppliers, we can provide our clients with the assurance that their energy needs will be met reliably.

4. Products Offered

Diverse product offerings are essential to meet the varied energy needs of our clients. We evaluate whether energy suppliers offer a range of products, such as fixed-rate and variable-rate plans, and renewable energy options. We also look at the availability of innovative products, such as prepaid energy plans and the inclusion of green energy options, to cater to the growing demand for sustainable solutions. Suppliers who can offer customizable plans provide more opportunities for our clients to find energy solutions that align with their specific usage patterns and environmental goals.

5. Contract Terms

Contract terms are a significant consideration when selecting an energy provider. We scrutinize the contract terms and conditions, the favorability of those terms and conditions, and the flexibility offered to customers. This includes assessing contract language related to early termination fees, renewal policies, and the ability to modify the contract based on changes in energy needs. We ensure that the contract terms are transparent and fair, protecting our clients from unexpected charges and unfavorable conditions. By thoroughly examining contract terms, we help clients find agreements that provide stability and predictability in their energy costs.

The 3 Types of Plans That Can Affect Your Electric Bill

Electric companies will promote many different plans for “cheap electricity” and other incentives to lure in residential and commercial customers. Reading the fine print or the electricity facts label of your new plan will likely reveal that the rate may be higher than you realize. At 5 Digital Energy, we find that the best electricity rates are the ones that don’t come with any gimmicks.

1. Fixed-Rate Plans

This energy offer is exactly what it sounds like: a rate that is fixed for the duration of the contract. With this kind of agreement, the rate on your contract will remain the same for the duration of the contract term. Electricity rates change daily with the market conditions, but when signing a fixed-rate plan, you are locking that rate for the term of the agreement.

Even for fully fixed-rate plans, there can be some confusion and even deceptive practices. Since all electric suppliers are buying electricity in the same wholesale market, we would expect their energy offers to be similar. If you see an energy plan that is considerably lower than the competition, make sure you read the fine print. A lower rate does not always equal the lowest energy bill. For example, that supplier could be passing through certain components—like hub-to-load-zone congestion electric costs—to your monthly electricity bill.

For residential electricity rates, you will see an accompanying document called an Electricity Facts Label or EFL. This document is used to standardize offers so the consumer can see how those passed-through components may add up to the energy rate. EFLs have to make assumptions on your energy usage in order to estimate those rates, so take them with a grain of salt. Not all commercial plans have an EFL, so it’s important to read contracts thoroughly.

2. Variable-Rate Plans

With a variable-rate plan, the rates billed by a supplier will change each month as market conditions change or at their discretion. The cheapest electricity rates occur when demand on the electricity grid is low. This is often in the middle of the night or during the spring and fall when the electricity demand for heating and cooling is not high. This is why some suppliers offer “Free Nights” in exchange for a higher rate during the day. In these instances, the less expensive electricity used during off-peak evening hours is more than offset by more expensive on-peak hours when there is a higher demand to meet energy needs.

An index or market-based product can sometimes yield the lowest rate on electricity bills, but they can also create highly volatile bills that fluctuate each month. This is because rates can spike during times of high demand on the power grid. 

For example, clients who were on an index-based contract during Winter Storm Uri that hit Texas in February 2021 received energy bills that were up to 50 times higher than their normal invoices. These expenses caused many suppliers and businesses across the state to go into bankruptcy. There are now regulations in place to prevent small business and residential electricity customers from inadvertently entering into these variable-rate supply agreements. Conversely, for larger commercial electricity clients who can tolerate large swings in monthly energy bills, an index product may make sense.

3. Green energy plans

A renewable energy plan typically has the same structure as a fixed-rate plan, with one exception. In this case, the power purchased from the supplier comes from a renewable source, likely from wind or solar power sources. Green energy plans are becoming more common and more affordable and are a great option if you’re looking to lower the carbon footprint of your home or business.

For example, a solar buyback plan is designed for homeowners with solar panels who can sell surplus production from solar panels in exchange for power bill credits.

If you’re interested in 100% green energy, be sure to check the box on the rates screen to show supplier energy offers that come from 100% renewable sources.

Our Trusted Energy Partners

After conducting thousands of transactions with the suppliers above, we are confident in recommending them as reputable electricity providers for your home or business.

If you see a supplier listed anywhere on our website, you can be confident that it will provide your business with a fair Texas electricity rate and contract terms.

We are with you every step of the way!

Contact us now if you have questions about anything related to energy deregulation. An entire team of energy experts who are intimately familiar with energy markets across the country are on the other end of the phone and computer screen to assist you. We are here to help you switch providers and make the best energy decisions for your business!

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