Deciding to Switch to Reliant Energy in Houston?

When considering switching to a new Houston electricity company we would like to suggest avoiding signing up with Reliant or TXU Energy. These two companies are advertising much higher electricity prices then some other more competitive electric companies in Houston. On the state run energy site right now it shows that Reliant Energy is not even offering a fixed electricity product. Most electric providers in Houston offer some type of electricity price that is fixed so you can lock in the price while rates are low and continue to pay that price 1, 2, or 3 years long before you have to renegotiate a new electricity price. This last year according to the Houston Chronicle it was said that Reliant had to stop taking on certain new customers because of a credit facility issue. Reliant Energy in Houston was not able to meet the financial requirements necessary for signing up new commercial and industrial customers and so for a time they had to stop taking on new customers. Since then this large Houston area electric company has been bought out and their credit issue is supposed to be resolved. For some reason Reliant still only shows a variable electricity rate being advertised and nothing else in the Houston area. Generally this is because it does not make fiscal sense to offer a fixed electric rate because of interest rates and credit facility issues with hedging a long term electricity contract. We don’t know if this is why Reliant Houston is only showing a variable electricity price and no fixed electricity prices like many of the other providers.

Comparing Reliant Houston to Other Electric Companies

In comparison with Reliant Energy we can recommend a few other Houston energy companies that offer some of the cheapest available fixed electric rates in the market. The providers we recommend are sound ethically run companies that do not cram in additional charges in your electricity bill through clever legal jargon in the fine details of their energy contract. Some Houston electric companies have been known to add in a fuel adjustment surcharge or leave off the TDSP charges in their advertisement only to add them in to your bill later on. Don’t fall for the too good to be true electricity offers and as well don’t sign up on an uncompetitive variable electricity rate that is subject to change after the first month.

When Does a Variable Electricity Rate Make Sense?

The only time a variable electricity rate like what Reliant Houston is offering is when you will only being staying at your place short term or you just don’t want to be locked in to a long term energy contract. In this case a variable electricity rate makes sense. There are much more competitive variable electricity rates in Houston that compete with Reliant that we would recommend over their current variable electricity prce they are advertising. If you would like a variable rate to compare with Reliants flex plan that is currently showing 16.1 cents a kWh then we recommend visiting Startex Power (their variable rate is 9.99 cents) and while your their take a look at some of their fixed electricity rates. All charges and fees are disclosed. No tricks or gimmicks. You can learn more about Startex by visiting their website and searching for customer complaints and reviews on Google.

No Deposit Guaranteed Houston Electricity

You may just need to move in to your new home or apartment very fast and avoid the need to pay a deposit. If you find yourself being a no credit or low credit score customer then we used to have a unique electricity plan in Houston that had no deposit but the plan is now discontinued. This plan was perfect for those that needed a  second chance at proving their credit worthiness and reestablishing themselves as a good paying Houston electric service customer. The plan was called the “Start Plan” and was with a company called Boing Energy. The Start Plan is no longer available but you can check out other great plans with Boing and others by using our compare chart or call at 1-800-971-4020.

The Dilemma of No Established Credit

Many in Texas have found themselves faced with a problem when moving into their first apartment. Take for instance a recent high school graduate that has no credit because they have yet to apply for a credit card or any other form of credit. They have just been hired by their first employer and have been their a few months and are one of the successful employees that the company has. They have received a couple of promotions and are making a fairly good salary. The only problem is that the employee still lives at their parents house. They desperately want to move out to achieve for the first time complete independence. Their parents help them move into their first apartment by cosigning the lease agreement. The student then goes to apply for utilities under their own name to be able to have some form of credit by having a utility in their own name. The Houston electric provider comes back asking for a $500 deposit just to tun on electric service at their first apartment. All of a sudden the dream of moving into their first apartment hits a road block. The student doesn’t have $500 for a deposit for an electric company. OK so we understand the young independent worker has no established credit but they do have a good job and they are responsible so why should they be punished? There is an answer to this dilemma and we will answer that and more below.

Most Houston Electric Companies Have not Created an Answer for This Issue

The margin in the electric providers electricity service rate is quite thin. One of the main points an electric company considers when selling their electric service to residential customers is what credit score threshold they will use to pass a customer on credit with no deposit. Below a certain score the deposit amount increases and they do this to insure they make money when selling electricity service in Houston rather then lose money. Obviously it makes sense that an electric company would want to make money so the deposit requirement isn’t completely evil. The worse the score the worse the deposit amount for Houston electric service. A Houston energy company by the name of Bounce Energy once had  an electric rate product for people who find themselves in a credit crunch like this. The electric rate product was called the “Fresh Start Plan” but it is no longer available. Since there is no longer a no deposit electricity plan available in Houston that we recommend we encourage you to compare and try out several traditional electricity companies in Houston until one passes you on credit and offers you a low or no deposit option.

You may go to Texas Affordable Energy to check on current residential