Everything you need to know about shopping for an energy provider in Texas

Shopping for an energy provider can be no easy feat, especially for first-timers. You shouldn't have to become an energy market expert to understand if you're picking a plan that's best for you and more so- one that won't break the bank.

We've compiled the most common FAQs and pulled together useful insights to help you confidently pick your next energy provider and plan.

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The two biggest things you'll want to pay attention to when shopping are:

• Price per kilowatt hours (kWh): Your electricity usage is measured in kWh and this is what you will pay for.
• Your usage: How much you use per month will determine what type of plan you choose and how much per kWh you'll pay.

The most common types of energy plans in Texas are:

• Fixed-rate plans have a rate that does not change during the duration of your contract.
• Variable rate plans have a rate that fluctuates based on market pricing. These types of plans often come month-to-month negating the need for a long-term contract.
• Prepay plans are similar to a toll tag account, you'll have a certain balance threshold you'll need to keep up-to-date and your energy charges will be deducted from that balance. Once your balance goes into the negative, you'll be charged a set amount (will vary by contract and provider) to top off your account and put you back into good standing. Prepay plans are ideal for those who don't want to run a credit check and just pay a small deposit upfront.
• Postpay plans are the most common and similar to any other type of bill you've paid. At the end of your plan's billing cycle, you'll be charged for the previous month's energy usage and given about a 2-3 week window to make a payment. Postpay plans will usually require a soft credit check or a deposit, which is typically around $300 in Texas.