Compare and Find the Best Electricity Rates in Houston for 2024

Looking to secure the most competitive electricity rates in Houston? Find the top energy suppliers in the area and evaluate their offerings to pinpoint the most economical options with today!

Paul Rhoads By Paul Rhoads, CEM, CEP linkedin link
Published: 01/26/2024 | Last Updated: 03/08/2024
five stars 36 reviews Clock 12 min read
Compare and Find the Best Electricity Rates in Houston Compare and Find the Best Electricity Rates in Houston

At, we take pride in our editorial integrity. Our content is not influenced by any energy supplier or provider. However, we may reference their products in our articles. Here's an explanation of how we make money.

Are you worried about expensive electricity bills for your new Houston home? Do you want to switch to a more cost-friendly energy provider?

If your answer to these questions is a resounding yes, look no further because our advanced trolls enable you to search for energy providers in Houston and compare their energy plans.

Average Electricity Rates in Houston Today

Houston’s energy deregulation paves the way for numerous energy companies to offer their services at competitive prices. As a result, you, as the consumer, also stand to gain benefits from competitive pricing because it often brings down the average electricity rates in Houston. Houston’s average electric rates are as follows.

Current Avg. Electricity Rates 

12 Month Fixed Rate $0.1664
24 Month Fixed Rate $0.1653
36 Month Fixed Rate $0.1584
These are the weekly Houston average price trends as of June 19, 2024. Pricing shown is based on an exact usage of 1,000 kWh.

Although Houston residents have a deregulated energy market, they are protected by the Public Utility Commission of Texas to ensure the companies offer fair energy pricing. Various factors can directly impact the electricity rates in Houston, and some of these significant factors are as follows.

  • Cost of electricity generation 
  • Energy transmission and distribution costs
  • Profit margin of energy companies
  • Supply and demand for electricity
  • Government regulations and policies

As you can see, the above factors can change with time, making your electricity rates somewhat variable. Moreover, the average Houston electricity rates can also vary depending on your chosen provider and plan. Hence, comparing electricity rates in Houston is vital to ensure the best value for money. 

Utilize Houston’s Deregulated Energy Market to Your Benefit

Houston residents have enjoyed the benefits of a deregulated energy market since 2002. The deregulation of the energy market enables Houston residents to choose from a broad range of energy providers and plans. If you live in Houston, you can search for competitive energy plans online and pick one that best suits your energy needs. Hence, deregulation enables you to boost your household savings and minimize unnecessary electricity expenses.

Best Electricity Plans in Houston Best Electricity Plans in Houston

Lowest and Best Electricity Plans in Houston

Switching to a more affordable electricity provider can significantly reduce energy expenses. Thanks to deregulation, Houstonians enjoy the luxury of choice regarding electricity providers. As a result, you can ensure you find the energy provider that offers you the best value-for-money energy plan.

Here are the top 5 lowest fixed electricity plans for your Houston home. We can also help you assess your energy requirements and suggest the best-suited energy plan for your unique needs. The right provider and plan help you ensure the lowest electricity bills for your household or business.

Compare Electricity Plans in Houston

There are numerous energy companies with their headquarters and operations based in the city. It is no wonder Houston is called the world’s Energy Capital. Furthermore, the availability of leading energy providers in Houston provides the city’s residents with several dozen eligible electricity provider options.

With so many reliable energy providers in Houston, it can be confusing to pick a single provider. We will help you compare the best energy plans and rates in Houston and help you make more informed decisions. It is also advisable to check for unique benefits offered by electricity providers and assess your options before choosing your provider. 

Uncover exclusive offers on electricity plans from the leading Houston energy providers

Tips for Effective Comparison of Houston Energy Plans

While advanced online tools and solutions may make Houston energy plan comparison significantly convenient, the process still needs streamlining. Effectively comparing electricity plans involves more than comparing the service changes of different plans from various electricity companies. The following tips can help you effectively compare Houston energy plans.

Check EFL or Electricity Facts Label

Residential electricity plans in Texas must have an EFL. It lets you learn valuable plan details, such as the average electricity rate per kWh, recurring charges, and early termination fees.

Check Your kWh Usage

Another effective way to ensure an accurate Houston energy plan comparison is to check your monthly household or commercial energy usage. Moreover, many promotional offers offer rewards or credits if you stay under the usage threshold.

Check for Additional Charges

It would be best if you also made it a point to check for hidden or additional chargers in the electricity plan. For effective comparison, monthly service fees, cancelation fees, and other add-ons must be transparent. 

Consider 100% Green Energy Plans 

Consider plans that offer 100% Green Energy. These plans are a perfect option for those prioritizing environmentally-friendly energy sources. 

Factor in the Contract Length

Electricity providers typically offer plans that range from one month to three years. A longer-term plan can help you save money if you commit to the provider.

How do I Find the Best Electricity Rates in Houston?

Finding the best electricity rates in Houston can be challenging, depending on your definition of “the best .”While you can always take the easy option and look for the lowest electricity rates in Houston, it may not be your best choice in the long run. 

Understanding your usage requirements is the key to finding the best electricity provider and plan for your household or business. Besides that, you must also be careful about hidden charges some companies demand, even if they show attractive plans and rates upfront. 

A little precaution in choosing your electricity provider could save you from expensive utility bills. By determining your property’s monthly kWh usage, you can easily find the best electricity rates in Houston based on actual energy consumption habits.

Types of Electricity Plans in Houston

There are two main classifications of electricity plans in Houston that you can choose from, and they are fixed-rate and variable-rate plans. Of course, you may often see many different types of electricity plans from innumerable energy companies, but all their plans and services fall into one of these categories.

Fixed-rate Electricity in Houston

With a fixed-rate electricity plan, you can set a price for the contract term with the supplier. It means you continue to pay a specific amount regardless of varying elements that impact energy production, such as the weather, natural events, and market volatility. Fixed-rate electricity plans have a typical term length of six, twelve, twenty-four, and thirty-six months. 

Variable-rate Electricity in Houston

Variable-rate electricity plans can charge you different or varying charges for electricity every month. Market factors cause the varying prices for electricity in such plans. While such plans give you greater flexibility, the electricity pricing can also become highly volatile occasionally. However, considering the plan’s overall flexibility, it is also the advisable type of energy plan for both commercial and residential purposes. 

Uncover exclusive offers on electricity plans from the leading Houston energy providers

Best Electricity Companies in Houston

Electricity companies in Houston come in different types, and it can take time to differentiate them. Houston has two kinds of electric companies - utility and electricity providers. While both types of electricity companies may sound the same, their differences are more significant than you might think.

Best Electricity Companies in Houston Best Electricity Companies in Houston

Houston Energy Providers

Energy providers in Houston are also called Retail Electric Providers or REPs. These companies are energy suppliers, meaning you buy your household or commercial electricity from these companies. In deregulated areas like Houston, you pay your electricity bills directly to these companies. 

Moreover, these are the same electric companies that appear when searching online for energy providers in Houston. You must compare the electricity rates from these companies to get a comprehensive picture of your energy expenses and pick the ideal provider for your needs. 

According to the report by the U.S. Energy Information Administration, the rank of the energy providers based solely on their customer count is as follows.

  • TXU Energy Retail Co, LLC 
  • Reliant Energy Retail Services
  • Direct Energy Services
  • Ambit Energy Holdings, LLC
  • Green Mountain Energy Company

Houston Electricity Utility 

The job of the utility company is to ensure accurate and efficient transmission of power to your residential or commercial property. 

CenterPoint Energy  is the electricity utility company for the people in Houston and its surrounding areas. 

The electric utility company  is responsible for maintaining the power lines and other power distribution hardware. They are also the people you must turn to in case of a power outage caused by a downed line or blown transformer. 


Steps to Switch Electricity Providers in Houston

You can conveniently browse for electricity providers in Houston with We bring you the flexibility you need to browse for a more suitable electricity provider and their best plans. You can use our site to access the electricity prices in Houston and all major cities in the US. Use the following steps to switch from your existing energy supplier to a new one. 

Steps to Switch Electricity Providers in Houston Steps to Switch Electricity Providers in Houston

 Find Electricity Providers in Your Area

You can click the Get Started button to search for electricity providers in your area. You can view all providers by state or by typing in your ZIP code to see the best Houston electricity companies and their plans.

Compare and Review Plan Details 

You can use our tool to compare and review plan details from different electric providers in Houston. Our online tool also lets you comprehensively compare plans to make an informed decision. Make sure to review the plan details and double-check everything before you proceed further. 

Enroll With the New Electricity Provider 

It is smooth sailing from there after you decide on an energy provider. All you have to do is follow the prompts to enroll with a new provider. 

Would you like to see how it works in real-time? Watch the video below to learn how to shop online with

How to Shop Youtube CoverHow to Shop Youtube Cover

Factors to Consider When Choosing a New Electricity Provider

Switching your electricity provider in Houston is easy with the help of Energy Pricing. However, there are certain factors you must consider before switching your electric provider, and they are as follows. 

  • Average monthly electricity usage
  • Early shopping (Don’t wait until the last minute to start shopping)
  • Electricity plan comparison
  • Contract exit fee 
  • Online signup for new electricity provider
  • Auto-renewing at higher rates

Moving to Houston? Get Your Electricity Ready With Zero Hassle

Moving to a new home is challenging, even without finding an electricity provider. We help you make the move to your new Houston home a little more bearable by enabling you to choose an electricity company conveniently. 

You can even compare the electricity rates from different providers and find the most cost-efficient one before moving to the new Houston home. 

Furthermore, it is significantly easier to choose and access the services of an electricity company with our online tools, making the moving process slightly more manageable for you and your family.

Easy Tips to Save Energy and Reduce Electricity Bills

Cost-savings are The most significant reason people switch to a new energy company. Following are some practical tips and tricks to save money on your electricity bills.

  • Review your electricity provider and their plan in Houston
  • Determine your monthly kWh usage for choosing the ideal electricity plan
  • Percentage of renewable energy sourcing
  • Factor in early termination fees for existing electricity providers
  • Use a hassle-free electricity setup online
  • Understand your electricity bill and energy usage habits
  • Utilize smart home technology for lower electricity usage
  • Learn the peak hours and off-peak rates in Houston
  • Use renewable energies like solar power
  • Access government incentives and rebates for renewable energy

Switch your energy provider and get the best electricity plans in Houston

Best Commercial Electricity Rates in Houston

The deregulation of the energy market in Texas makes Houston one of the best places for commercial businesses, especially if they need a lot of electricity. Houston businesses can choose an electricity provider that best fits their requirements while offering pocket-friendly rates. 

Any business that spends over a couple of thousand dollars on electricity bills can consider switching to a more cost-efficient energy provider. Moreover, it can significantly contribute to your bottom line and save up to 20% on electricity expenses.

Houston Electricity Rates - Frequently Asked Questions (FAQs)

Which electricity company has the lowest rates in Houston?

The deregulated energy market in Texas enables you to access competitive energy pricing from multiple Houston electricity providers. Rhythm, Good Charlie, etc, are some leading energy providers in Houston that provide you with cost-efficient energy services. However, you can use our online tool to view and compare electricity plans from various providers.

What are the factors that determine electricity rates in Houston?

Various factors determine electricity rates, including the energy market condition and fuel costs. Besides that, infrastructure maintenance and government regulations can also impact the electricity rate in Houston. You can view the pricing of electricity plans from the leading suppliers in Texas with our online tools and choose a provider.

When is the best time to buy a Houston electricity plan?

Electricity prices in Houston and other major Texas cities come down during spring and fall, making them ideal times to shop for new electricity plans. However, it would help if you also kept in mind the early termination fees for your current electricity provider. Hence, it would be best to always look for the lowest electricity rates after considering various dependent factors.

How can I find the best electricity plan for my needs?

Finding the ultimate electricity plan for your home or business needs can be complex and requires a personalized approach. First, you should consider assessing your energy usage pattern. The best electricity plan for you depends on your energy usage habits and the kWh usage. Besides that, you can also review the plan’s terms and compare it with others.

What are the average monthly electricity rates in Houston?

The average monthly usage of electricity in Houston is around 1300kWh. However, this number can vary significantly based on your energy usage habits. The size of your home and the number of people in the household can also impact electricity rates. It is advisable to assess your electricity usage to understand your energy needs better.

How do I find the best electricity plan for me?

You can easily find the best electricity plans for you with the help of our online tools. All you have to do is click on the Get Started button and choose your area of residence. Energy Pricing lets you view, compare, and buy energy plans from the leading suppliers in Texas. You must also assess your monthly energy usage to determine your best electricity plan.

Why are average household electricity rates in Houston higher than in Dallas?

Due to the high humidity, certain places like Houston use more electricity. Gulf Coast homes use more electricity to keep their ACs running overtime to compensate for the highly humid atmosphere, especially during the summer. With this excess electricity usage, Houston homes often have higher electricity bills than Dallas homes.

Are fixed-rate electricity plans better than variable plans in Houston?

In most cases, people prefer choosing fixed-rate electricity plans in Houston. Since fixed-rate electricity plans are predictable, keeping a tight budget on your power expenses is generally reasonable. Variable plans have fluctuating payments that vary with market conditions, and you must assess risk tolerance and price stability before choosing one.

What is the best way to save on electricity bills in Houston?

Saving money on your electricity bills in Houston takes much time and effort. Some steps include using energy-efficient appliances and practicing energy conservation habits. Besides that, you can also consider new energy plans that provide you with energy-efficient features and incentives from the Houston electricity provider.

Will switching my electricity provider disrupt energy services?

Using our online tool, you can seamlessly switch to a new electricity provider in Houston with zero disruptions. You can browse for leading energy suppliers and their plans online and choose one that best suits your requirements. Moreover, you can switch your electricity provider early to avoid (unlikely) disruptions and ensure continuous access to electricity.



Paul Rhoads

Paul Rhoads, CEM, CEP

Paul is the Vice President of He has over a decade of experience in the energy industry, advising clients on how to shop in deregulated energy states. In addition to his experience, Paul is a Certified Energy Manager (CEM) and Certified Energy Procurement Professional (CEP).

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