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  • Writer's pictureGabe C

Cheap Energy Company

Updated: Nov 14, 2022

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Cheap Energy Company

What is cheap in the residential electricity world? How cheap can a Cheap Energy Company be?

The prices of electricity are very competitive. Both, residential electricity with a contract that sends a bill every month, and prepaid electricity, which is recharged each time your balance is low.

How much will I pay per month for electricity?

At the end of the day, what we want to know is the total of what we will be going to pay each month.

Well, this is a very difficult question to answer since everyone consumes different amounts of electricity, even if two people live in similar residences, the behavior and the way they use the electricity will be different.

The point of sale, the agents of the Cheap Energy Company

When buying electricity for our home, we are often deceived by sales agents who only want to close the sale and do not care what happens to the customer. These sales agents do not tell the whole truth and hide charges that are unavoidable.

Do not be fooled and ask the right questions.

Power is not measured in money but in wisdom. Knowledge is power.

Overall, and first, we must understand that there are 3 entities involved in residential electricity. There are more, but these are the most important. The energy company, the utility, and the state.

Cheap Energy Company - How to read your energy bill Texas

Image of an electricity bill
How to read an energy bill

Charges involved in residential electricity.

A. Energy charge: The electricity company.

  1. This is what the electricity company is really selling. What she charges are the actual kilowatts that we use when turning on the lights, TV, A/C, etc.

  2. The price paid to the electricity company is well below the total price of what we all pay.

  3. The electricity company is responsible for billing ALL charges incurred so that we have one single bill for the electricity we use at home.

B. Delivery charge: The utility

  1. This is what we must pay to get electricity in our homes. That is cables, poles, towers, transformers, etc.

  2. All the infrastructure is involved so that the energy reaches the meter that is outside our house.

  3. They count the number of kilowatts that each meter consumes.

  4. When there is a blackout, they make the electricity return to its regular operation.

C. Taxes: The State

  1. We all have to pay taxes. The state collects sales taxes and electricity delivery taxes.

To sum up; approximately what they charge us for electricity is like this.

A. Electricity charge: 52%

B. Delivery charges: 43%

C. Taxes: 5%

In conclusion. When reviewing your electricity bill, you can see that the charges are broken down into those 3 major items.

That's why I was saying that, when comparing prices of the Cheap Energy Company, ask about the price of electricity. You must compare apples with apples.

If someone wants to sell you the electricity rate for 5 cents, then the seller is not telling you the whole truth and is not including the other charges that will be on your electric bill.

For years, the average price we pay for electricity is about 11 to 12 cents per kilowatt hour.

Measure your efforts to save electricity with prepaid electricity.

No Deposit Electricity


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