Fixed-Rate Electricity | Plans, Rates & Providers
Fixed-Rate Electricity Plans
Written by Dominique Sabins
Edited by Jamie Cesanek
Last updated 10/11/2024
Compare today’s best fixed-rate energy plans in your area with SaveOnEnergy.
- Fixed-rate energy plans are a stable option for customers because they offer consistent electricity rates for a set term length.
- In deregulated energy markets, fixed-rate plans are the most common option offered by retail electric providers.
- Enter your ZIP code to find cheap fixed-rate energy plans in your area using SaveOnEnergy’s free marketplace.
What is a fixed-rate energy plan?
Fixed-rate energy plans enable consumers to lock in a set electricity rate for a specified contract length. This means that during periods of peak energy demand, such as a heat wave or winter storm, your electricity rate won’t budge. Fixed-rate energy plans are a great option for those who want predictable electricity bills and peace of mind during fluctuations in the market.
Pros and cons of fixed-rate electricity plans
Learn more about the pros and cons of fixed-rate energy plans to determine if this option is right for your household or business.
Pros
- Fixed electricity price. The main pro of a fixed-rate plan is that your electricity rate will not change throughout your contract. This makes fixed-rate plans great for consumers who want predictable electricity bills.
- Variety of options. Fixed-rate plans are the most common type of energy plan in deregulated markets. Since most retail electricity providers (REPs) offer fixed rates, you have many options when shopping.
- Protection from price spikes. Price spikes often occur during times of high energy demand, such as in the summer months. Fixed-rate energy plans protect you from paying higher electricity rates during spikes because your rate is set for your entire contract. However, you’ll still have to pay for more energy if your consumption increases.
Cons
- Early termination fees (ETF) . Fixed-rate energy plans require you to sign a contract that locks in your electricity rate for a certain period of time. These contracts typically include a cancelation fee if you choose to end your contract early.
- Lack of flexibility. Since your electricity rate is fixed, you cannot easily switch plans when you’re unhappy with your provider. You’ll have to wait until the end of your contract to find a new option or risk paying an ETF.
- Deposits. Fixed-rate energy plans often include a credit threshold for new contracts. If your credit is below the threshold, you may need to pay a deposit to begin service.
If the cons of fixed-rate energy plans resonate with you, a variable-rate plan may be a better fit for your energy needs. Variable-rate plans typically don’t require a contract and are month-to-month. While these plans allow you to take advantage of flexibility, keep in mind that you may experience high electricity costs if electricity market rates spike.
What is the best fixed-rate energy plan on SaveOnEnergy?
Energy rates shift frequently due to demand and macro conditions impacting the wholesale cost of electricity. That’s why SaveOnEnergy shows you real-time rates and plans for your location. Our energy experts selected some of today’s best fixed-rate energy plans to help you navigate your options. Consider these options for your next energy plan, and enter your ZIP code to sign up for rates in your area.
| Provider | Plan | Plan details | Term length |
|---|---|---|---|
| TriEagle Energy | Silver Eagle 12 | Straight-forward rate with no minimum charges or hidden fees | 12 months |
| TXU Energy | Smart Edge 12 | Usage credits are available for customers using 800 kWh or more | 12 months |
| TXU Energy | Smart Deal 12 | The cheapest rates are available to customers within the highest usage tier. Customers can receive bill credits for using 1,200 kWh or more | 12 months |
| Gexa Energy | Eco Saver Plus 12 | 100% renewable plan with a $100 monthly bill credit for usage of 1,000 kWh or more | 12 months |
| Discount Power | Bill Credit Bundle 24 | Ideal for small- to medium-sized homes. Customers receive a $100 bill credit for using over 1,000 kWh per month | 24 months |
| 4Change Energy | Maxx Saver Select 24 | The cheapest rates are available to customers using between 1,000 kWh and 1,999 kWh per month. Benefit from a bill credit for using over 1,000 kWh each month. | 24 months |
Top retail electric providers
Since multiple REPs compete for your business in deregulated markets, it can be confusing to know which one is right for you. Explore some of our top providers on SaveOnEnergy to help you choose.
- TXU Energy is the largest and oldest provider in Texas. It offers fixed-rate and variable-rate plans as well as solar options. Some plans offer bill credits — be sure to check the Electricity Facts Label (EFL) to see if you qualify.
- Gexa Energy provides 100% renewable energy plans at various rate types and contract lengths. You can find fixed-rate and variable-rate options at 12 and 24-month lengths.
- TriEagle Energy has a large range of energy plans for every household. This provider offers both traditional and green energy options for homes and businesses.
- Payless Power is one of the few providers offering prepaid energy plans, which allow you to skip the upfront deposit and pay for your energy as you go.
How to sign up for a fixed-rate plan
SaveOnEnergy makes shopping, comparing, and signing up for your next electricity plan easy. To activate your service, follow three simple steps.
- Enter your ZIP code. Electricity plans and rates vary by location. Enter your ZIP code to explore what’s available in your area.
- Filter for a fixed rate. Our marketplace offers filters to help narrow down your search. Under the rate type filter, select fixed-rate to browse only fixed-rate plans for your location.
- Sign up. You can sign up either online or over the phone. Call the number on your screen to speak with one of our energy experts today.
Fixed-rate energy FAQs
- Is a fixed energy rate good?
Fixed-energy rates are beneficial for customers who prefer long-term stability, predictable monthly electricity bills, and protection from fluctuations in the energy market.
- Are variable-rate plans cheaper than fixed-rate plans?
Variable-rate plans are not necessarily cheaper than fixed-rate plans. The cost of electricity changes throughout the year due to multiple factors, including seasonal demand, weather, and location. Variable-rate plans can be cheaper during a lull in the market. However, they can be more expensive if the market spikes. Overall, the electricity rate on variable plans is constantly changing, whereas fixed-rate plans provide stable pricing for your contract.
- What is a good price per kWh?
Since the cost of electricity is constantly changing, the best price per kWh will depend on your location and the current market cost of electricity. Today’s cheapest electricity rate in Texas is 10.8 cents per kWh. Gexa Energy, 4Change Energy, and Frontier Utilities currently offer this rate. Enter your ZIP code to find the lowest electricity rate in your area.