7 Warning Signs to Watch for in Electricity Plans

Garrett Faden
May 20, 2024
2 min read

Updated: Nov 15, 2024

Living in Texas means dancing with Retail Electricity Providers (REPs) and their sometimes confusing, not-so-fun energy plans. Teaser rates, tricky ads – you name it. At GetPower, we understand that the struggle is real. Here’s the lowdown on 7 warning signs in electricity plans you’ll want to spot and avoid.

1. Moving/Transferring Service

Don’t get caught in the contract trap if you move! Your contract isn’t stuck to you – it’s tied to the location only. You can cancel without penalties if you show proof of moving. Then you’re free to choose the plan you want if you need service at a new location.

2. REP Retention Team Incentives

When a retention team member comes offering incentives to keep you, ask for it in writing. This ensures that person has the authority to offer these incentives and that the REP will honor the deal. Make sure they stick to their promises!

3. Hidden Fees

Beware of sneaky charges! Your quoted rates should cover EVERYTHING, not just the energy charge. Double-check the fine print to avoid any unwelcome surprises.

4. Fluctuating Rates

Variable-rate plans (aka month-to-month electricity) can mess with your budget. Be sure you understand what you’re signing up for, especially with prepaid plans.

5. Block/Tiered Rate Programs

These plans might surprise you with different prices at various usage levels. Watch out for unexpected hikes in your bill!

6. Contract Terms

Read the fine print! Don’t just check the dates and top-line rates – those are important but multiple factors determine how much you pay. From delivery charges to peak hour penalties, know every detail before committing.

7. Early Termination Fee Traps

You can dodge those termination fees by switching no earlier than 14 days before your contract ends. But be alert – early renewal notices might rope you into renewing before you’re ready.

Bonus Tip: Understanding Contract End Dates

Confusing Dates: Figuring out when your contract actually ends can be tough.
Early Renewal Notices: Some providers send renewal notices too early, limiting your options and locking you into higher rates.