Whether you own a home in Texas or rent it out, you will surely struggle to find the best electricity providers and plans. As Texas is one of the most deregulated states in the country, people living there are free to choose their own electricity supplier. But what about businesses? Homeowners and renters are not the only ones in Texas who look for better electricity plans and reliable electricity providers. Business owners also need electricity. No matter how big or small their business is, business owners, need electricity to keep the lights and other electrical appliances on, including air conditioners, computers, printers, routers, etc.

In Texas, there are almost 2.7 million small businesses with 4.7 million employees. From small to large corporations, every business needs electricity. This business includes hotels, schools, showrooms, shopping malls, gas stations, warehouses, etc. This business category is sometimes divided into:

  • Commercial: This includes businesses whose maximum electricity demand during the 12 months is more than 50 kWh.
  • Small commercial: This includes businesses whose maximum electricity demand during the 12 months is less than 50 kWh.

Is the commercial electricity rate more expensive than the residential rate in Texas?

The answer to this question depends on various factors. As a result, it is critical to identify and comprehend the factors that influence residential and commercial electricity rates. These factors are:

  • Regulations: As Texas is one of the deregulated states, people have the freedom to choose the electricity provider of their choice. Different electricity providers have different rates and plans. Business owners and residents can shop around and choose the one with the best plans and lowest rates to save money. One of the most reliable electricity providers in Texas is Reliant Energy, which offers some of the best electricity plans at affordable prices.
  • Seasons: The electricity rates go up and down depending on the season. The summer in Texas keeps people indoors. In the summer, people need and use more electricity, so the demand for electricity increases (mostly due to air conditioners). When the demand increases, so do the electricity rate.
  • Cost of fuels: Fuel is required to generate and supply electricity to residents and businesses. So the rate of electricity also depends on fuel prices. Fuel prices also vary depending on some factors, including government taxes, transportation, demand, and availability; this further influences the electricity rate.

Apart from all these, electricity usage is another factor that affects only commercial electricity rates. Businesses use more energy than residential consumers on a regular and steady basis. The more electricity businesses use, the more money they can potentially save.

Overall, commercial electricity rates are usually lower than residential ones in Texas. Although the cost of electricity per kWh is often lower, the monthly electricity bill is much higher than the residential one because of the increased amount of energy businesses use.

Deregulated electricity for businesses in Texas

Texas is one of the most deregulated states, but still, some cities are not deregulated. Almost 85% of Texas cities have a deregulated energy market. Deregulation gives residents and business owners the power to choose their own electricity suppliers.

Deregulation created hundreds of electricity providers and also increased competition among them. There are almost 120 electricity providers currently operating in the state. Each of these Retail Electricity Providers (REPs) offers multiple attractive electricity plans, rates, and offers for businesses. One such reliable electricity provider in Texas is Reliant Energy, which has over 1.5 million consumers. They offer the most attractive rates, plans, and services to their commercial and residential consumers.

Usually, there are two major types of commercial electricity plans that each electricity provider offers, including:

  • Fixed-rate plan: This plan offers stabilized and predictable monthly energy bills. Fixed-rate plans allow you to lock in a rate for the duration of the contract. With a fixed-rate plan, your monthly rate does not change for the duration of the contract. The contract term can range from 12 to 36 months, depending on the electricity plan you choose.
  • Variable-Rate Electricity Plans: As the name suggests, with variable-rate electricity plans, the rate fluctuates from month to month. If the rate of electricity increases in the market, your energy bill will be calculated as per the increased rate, and you will have to pay a higher bill for that month. And if the price of electricity goes down, you will have a lower monthly bill.

When you decide to sign up for a specific plan, make sure you have read all the terms of the contract. As a business owner, you will never want to get stuck with an electricity provider or plan that you don't agree with. So choose your commercial electricity provider and plan wisely.