How can I reduce my electric bill?

The most effective way to reduce your electricity bill is to find a plan that best matches your home's usage profile. By entering your historical usage data, you can quickly find the ideal plan for your needs.

What is a typical electric bill in Texas?

According to the U.S. Energy Information Administration, the average retail price of residential electricity in Texas is 14.61 ¢/kWh. The typical Texan uses an average of 1,132 kWh per month; at 14.61 ¢/kWh, the average electric bill would be approximately $165.04.

How to Lower Your Electricity Bill

Lower Your High Electricity Bill in Texas

Are you tired of sky-high electricity bills? We’ll help you cut costs and keep more money in your pocket.

For the past 15+ years, Texans have asked us for guidance on understanding their electricity bills and finding ways to save.

Along the way, we’ve gained valuable insights into the most common reasons behind high bills and the most effective strategies and tools for lowering them.

The Bottom Line: Slash high bills by identifying energy hogs, improving efficiency, and comparing rates to find a better plan. We make it easy to find the best rates and switch providers in just a few clicks. Take control of your electricity costs today.

See How Your Electricity Rate Compares to the Best Deals in Your Area

Are you curious how your current electricity rate stacks up against the competition?

We’ve made it incredibly simple to determine if you’re overpaying on your electricity bills and how much you could save by switching plans.

Compare Your Current Bill to Market Rates in 30 Seconds

Locate your most recent electricity bill and find the following information:
Enter your zip code below for your area’s most competitive, up-to-date electricity rates.
Compare the rates and total charges of the plans displayed to your current bill.

Your total monthly charges
Your electricity rate (price per kWh)
Your monthly kWh usage
If the rates shown are lower than your current rate, you may be overpaying for electricity.
If the total charges for your usage are lower than your current bill, switching plans could save you money.

Sample Electricity Bill

How It Works

It’s simple - enter the kWh usage from your bill for a straightforward comparison of your potential savings.

Take Control of Your Electricity Costs

By comparing your current bill to the most competitive rates in your area, you can confidently determine if switching plans could lower your monthly expenses.

Don’t leave money on the table - enter your zip code now and see how much you could save on your electricity bills.

Please note: If you are currently under a contract with your electricity provider, switching plans before your contract expires may result in an early termination fee. Review your contract terms carefully before making any changes to your service.

Causes of High Electric Bills

You’re not alone if you’re shocked by a high electricity bill. Many Texans experience bill spikes, especially during extreme weather months.

There are two leading causes of high electricity bills:

Increased Usage Due to Weather

Your heating and cooling systems work harder to maintain a comfortable indoor temperature during the hottest and coldest months.
This increased usage can cause your energy consumption to surge by 20% or more compared to milder months, leading to higher bills.

Expired Contracts and Holdover Rates

Some fixed-rate electricity contracts have terms designed to expire during high-usage months.
If you don’t take action to renew or switch plans when your contract ends, your provider will automatically move you to a “holdover” variable rate plan.
These holdover rates can be significantly higher than fixed rates, often leading to bills that double overnight.

In addition to these two primary factors, several other issues can contribute to high electric bills:

Aging, inefficient appliances that consume more energy
Inadequate insulation and air leaks lead to energy waste
Lifestyle changes, such as spending more time at home or adding new energy-consuming devices
Inaccurate billing or meter issues
Wasteful habits, like leaving lights on or setting the thermostat too low
Lack of regular HVAC maintenance, causing systems to work less efficiently

Understanding the causes behind your high bill is the first step toward finding a solution.

You can take targeted actions to reduce energy consumption and lower your bills by identifying the main culprits.

We can help you find better rate plans tailored to your specific usage patterns, ensuring you’re not overpaying for electricity.

Enter your zip code below to compare rates and find the best plan for your needs.

Strategies to Lower Your High Electric Bill

The causes behind most electricity bill spikes can be narrowed down to two key factors: increased usage and expired contracts.

Manage Your Usage During Extreme Weather Months

During the hottest and coldest months, increased usage of heating and cooling systems can cause energy costs to skyrocket, often more than 20% higher than in milder months.
Implement strategic tweaks to reduce your energy consumption:
Adjust your thermostat slightly higher in summer and lower in winter to trim 15% or more from your heating and cooling costs each billing cycle.
Use ceiling fans to circulate conditioned air more efficiently.
Close blinds and curtains during the hottest parts of the day in summer and open them to let in natural heat during winter.

Be Proactive About Contract Expirations

Some fixed-rate electricity contracts have terms designed to expire during high-usage months.
Suppose you don’t renew or switch plans when your contract ends. In that case, your provider will automatically move you to a “holdover” variable-rate plan, leading to unpredictable rate hikes and bills that double overnight.
Protect yourself against these price spikes by locking in a new fixed-rate contract before your term expires.

Compare Rates and Switch Providers

If your contract expires soon or has recently expired, enter your zip code below to see how much you can save based on the lowest rates available for your home.
Use Compare Power’s user-friendly platform to compare rates from multiple providers and switch to a more affordable plan that fits your usage patterns.

Implement Energy Efficiency Measures

Replace old appliances with ENERGY STAR-certified models to reduce energy consumption.
Improve your home’s insulation and seal air leaks to minimize energy waste.
To reduce lighting costs, switch to smart lighting solutions, such as LEDs, dimmers, and motion sensors.

Adopt Energy-Saving Habits

Turn off lights and electronics when not in use.
Use smart power strips to eliminate standby power consumption.
Maximize the use of natural light and ventilation when possible.
Use Smart Meter Texas to monitor your usage and adjust consumption.

Understanding the causes of high electric bills and implementing these strategies can significantly reduce your electricity costs regardless of the time of year.

Switch Electricity Providers in 5 Easy Steps

If you haven’t switched providers in a while or your contract has expired, switching to a new provider with a lower rate can be the quickest way to save on your electricity bill.

Follow these five simple steps to switch providers and potentially lower your electricity costs:

Enter your zip code
Review your usage history
Compare available plans on Compare Power
Select a new plan that best fits your needs
Complete the switch online in just 5 minutes

Switching providers won’t cause any service interruptions.

Learn how in this 2-minute video ⤵️

Quick and helpful. I was paying too much for my electricity they cut my bill in half!

Compare Power: Your Trusted Electricity Ally

We make comparing rates and switching electricity providers easy, helping you save money on your bills. Our user-friendly platform simplifies the process.

Take control of your electricity costs today:

Determine your usage requirements
Compare rates and switch to a better plan
Implement energy-saving tips and strategies

We’re dedicated to providing straightforward answers, helpful resources, and genuine support to help you manage your electricity bills effectively.

Begin your savings journey with Compare Power today. Compare rates and switch providers in just minutes.

Next: Shop with Your kWh Usage & Save

Comparing electricity rates based on your home’s specific kWh usage can help you save money on your Texas electricity bill.

Assistance Paying Your Electricity Bill

If you’re struggling to pay your electricity bill in Texas, help is available. Explore our comprehensive guide on assistance programs, including Senate Bill 1976, Lifeline, Link-Up, and the Weatherization Assistance Program.

Discover eligibility requirements, application processes, and valuable tips to secure the support you need. Don’t face your utility challenges alone - learn how to access these vital resources and regain control of your energy expenses.

High Electric Bill FAQs

Looking for more ways to lower your electricity bill? Check out these frequently asked questions.

How can I reduce my electric bill?: The most effective way to reduce your electricity bill is to find a plan that best matches your home's usage profile. By entering your historical usage data, you can quickly find the ideal plan for your needs.
What is a typical electric bill in Texas?: According to the U.S. Energy Information Administration, the average retail price of residential electricity in Texas is 14.61 ¢/kWh. The typical Texan uses an average of 1,132 kWh per month; at 14.61 ¢/kWh, the average electric bill would be approximately $165.04.

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