Find the Cheapest Electricity Rates in Houston, TX

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. It often brings down the average electricity rates in Houston.

Houston’s average electric rates are as follows.

Factors Determining the Cheapest Electricity Rates in Houston, Texas

Although Houston residents have a deregulated energy market, they are protected by the Public Utility Commission of Texas. That ensures 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.

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 many 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.

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 number of major energy providers in Houston provides the city’s residents with several dozen eligible options.

With so many reliable energy suppliers in Houston, it can be confusing to pick a single provider. That’s why we created this Electricity Providers in Houston Comparison Guide. We will help you compare the best energy plans and rates in Houston, enabling you to make more informed decisions.

It is also advisable to check for unique benefits offered by electricity providers. Assess all your options before choosing your provider.

While you energy compare in the Houston market, know there are two main classifications of electricity plans. These include fixed-rate and variable-rate plans. You may also see different types of electricity plans from innumerable energy companies. In general, however, all plans and services fall into one of these two 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. Factors can include 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. With that said, it is still the advisable type of energy plan for both commercial and residential purposes.

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.

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.

You must compare the electricity rates from these companies to get a comprehensive picture of your energy expenses.

According to the EIA, the rank of the energy providers based 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 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.

You can conveniently browse for electricity providers in Houston with EnergyPricing.com. 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.

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 EnergyPricing.com.

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

Businesses spending several thousands of 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.

It's time to take charge of your electricity needs, start comparing rates, and find the perfect plan for your home or business in Houston.

EnergyPricing.com is an online marketplace that connects residential and commercial customers in deregulated electricity and natural gas states with energy suppliers.

As a registered electricity and natural gas broker with the Public Utility Commission in each state where we operate, energy suppliers pay us a small referral fee for connecting customers like you with them. Here is a full explanation on how we make money. 

As of May 2025, Frontier Utilities offers the cheapest electricity rate in Houston at 10.6 cents per kWh for a 12-month plan, which is based on 1,000 kWh monthly usage. Other competitive providers include Cirro Energy and Discount Power, with rates starting at 10.9 cents per kWh. These companies offer both 12-month and 24-month fixed terms, which lock in rates at the time of signing. Electric rates in Houston fluctuate daily, so keep this in mind when choosing an energy company.

In Houston, CenterPoint Energy is the utility company responsible for delivering electricity to residents, maintaining the grid, and handling power outages. However, since Texas has a deregulated energy market, you can choose your electricity provider (Retail Electric Provider or REP) for billing and plan options. Popular providers in Houston include Frontier Utilities, Gexa Energy, 4Change Energy, TXU Energy, Reliant Energy, Cirro Energy, and Discount Power. You can compare plans on Energy Pricing by putting in your ZIP code. You'll be met with a list of the cheapest electric suppliers in Houston today!

Choosing an electricity provider in Houston involves a few key steps to ensure you get the best plan for your needs. Houston is a city listed in Texas' deregulated electricity market. Start by understanding your electricity usage, which averages 1,145–1,300 kWh per month in Houston, by reviewing past bills. This helps you select a plan that matches your consumption and avoids unexpected costs from mismatched tiered-rate plans. Next, you can compare rates and plans on marketplaces like Energy Pricing. 

Focus on fixed-rate plans for price stability, as variable-rate plans can spike during high-demand periods like summer, when it's hottest and energy consumption is at its peak. When evaluating options, consider different plan types. There are four main plans: fixed-rate, variable-rate, prepaid, or green energy plans. Fixed-rate plans are ideal for budgeting, while prepaid plans suit those avoiding deposits. Green plans, like those from Gexa Energy, use 100% renewable energy, which is widely available in Texas, a leader in wind and solar. You can review the Electricity Facts Label (EFL) for hidden fees, early termination fees (ETFs), or minimum usage charges. Providers like BKV Energy highlight transparency with no hidden fees. Additionally, prioritize providers with strong customer service, such as Reliant or Constellation, which offer 24/7 support and usage tracking tools. 

Avoid electric suppliers in Houston with poor reviews or unclear terms. Switching is seamless, with no service interruption, as your new Houston electric supplier coordinates with the old one, and CenterPoint Energy continues to deliver power and handle outages. For the best rates, shop early, ideally up to 14 days before your current contract ends, especially during milder seasons like fall or winter.

As of May 2025, the average electricity rate in Houston is around 14.6 cents per kWh for 1,000 kWh usage.  However, the cheapest rates available are as low as 10.6 cents per kWh from providers like Frontier Utilities for a 12-month plan. Other providers like Cirro Energy and Discount Power offer rates starting at 10.9 cents per kWh. Electricity rates in Houston depend on individual power usage, plan type, and electric provider, so it's important that you compare options when using a Houston electric marketplace, like Energy Pricing. Simply put in your ZIP Code and find the best electric rates in Houston today.

Electricity in Houston is expensive due to several factors tied to Texas's deregulated energy market and increasing demand. The state's market structure, managed by ERCOT, doesn't pay for extra capacity. This leads to price spikes during high electricity demand, like heat waves. Power plants only earn when they supply electricity. Houston's population growth (nearly 30 million residents), along with rising demand from AI data centers, cryptocurrency mining, and industrial processes, puts further strain on the grid. This strain pushes rates up. Despite having low natural gas prices, aging infrastructure and extreme weather increase maintenance costs, which are then passed down to consumers. CenterPoint Energy, Houston's utility, has also raised delivery rates to cover weatherization and new generators. While the average rate is 14.6 cents per kWh, spikes can hit 16 cents or more during peak times, far above historical lows of 8.55 cents a decade ago. Renewable energy growth helps, but transmission costs and market volatility keep retail prices high. This is why it's important to shop for a fixed-rate electricity plan in Houston. These plans let you lock in rates so you're not as susceptible to volatility. You can put in your ZIP Code on energy pricing to find the cheapest electric suppliers in Houston.

The "best" electric provider in Houston depends on your priorities. There are a few factors to consider, such as low rates, customer service, or renewable energy options. As of May 2025, Frontier Utilities stands out for offering the lowest rate at 10.6 cents per kWh for a 12-month plan, making it a strong choice for cost-conscious consumers. Gexa Energy is also highly rated, especially for eco-friendly users, with 100% renewable plans and competitive rates around 10.9 cents per kWh, plus a $125 bill credit for 1,000 kWh usage. Other top picks include Cirro Energy and Discount Power, who offer rates starting as love as 10.9 cents per kWh as well. Reliant offers 24/7 support and usage tracking, while Rhythm provides a 30-day satisfaction guarantee and 100% green plans. TXU Energy is popular for its transparency, no hidden fees, and same-day service options. You can compare these Houston electric providers on energy marketplaces like Energy Pricing. All of our electric suppliers in Houston are pre-screened, taking the worry out of finding a reliable energy company. Just enter your ZIP code to find the cheapest electric rates in Houston today!

You can rely on CenterPoint Energy, your local utility company, for delivering and maintaining your electricity. If there's a power outage, just contact them to get you back up and running.