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  • Writer's pictureGabe C

How to Get a Better Electricity Rate

Updated: Mar 28, 2023

How to get a better electricity rate?
Are you at a good energy rate?

Many of us just pay our bills without really looking at what the service is costing us. We just think that it needs to be paid and that is it. What is more, there are many times that we get an overcharge and we don’t really know why. Our electricity bill is no different, very few energy consumers know how to read an electricity bill. Furthermore, very few electricity users know why they must pay some of the charges.

The fact that, nowadays, we need electricity to live, makes us think that is not worth it to look at other options and this is like a TAX and we just need to go with it. Think about this, without electricity, it will be very hard to do many things like calling our friends and family, powering our tablets to work, having our clothes dry and clean, and in many cases even cooking. Electricity at home is now a necessity.

All in all, we just pay for what we use, right? Well, we want to be better at this. First, know that your energy rate is fair, know that your energy plan is the correct one, understand the energy charges are correct, from the electricity company, and the utility company, which are 2 different entities. How to figure out a good energy rate is a challenge.

How to Read an Electricity Bill.

Home electricity charges explained
All charges are here on the electricity bill

Electricity Usage

First, let’s find the energy usage. The meter reading is done by the utility company, not by the energy company. Usually located by the top and enclosed in a rectangle.

Electricity Company Energy charges

Second, the electricity bill should state what are the electricity company's energy charges. This is where a lot of folks get confused. With that said, we have experienced a lot of cases where the customer thinks he is paying a fair energy rate, let’s say 9.6 cents per kWh. However, if that 9.6 cents per kWh is just for the energy charge, this is not fair. He must add the following. Electricity companies also name REPs (Retail Electricity Providers).

Utility Delivery Charges

Next, we have the utility charges. These charges are what the owner of the infrastructure, facilities, and all related to making the power reach every home and business charge us. Most Texans are on the energy deregulated areas. In these deregulated areas, there is the REP and there is the Utility. The utility charges for maintaining the poles, transformers, towers, etc. All that is needed is to deliver the power safely.

Lastly, we have taxes. We all must pay Uncle Sam for what we get and use. I could include the PUC, the Public Utility Commission gets a little piece of the pie too. They oversee and regulate all entities involved.

To conclude. Home electricity is not an easy thing to understand. Let us help you to get better electricity services and energy rates. Send me your electricity bill and we will tell you if you are at a good energy rate.

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