Expert advises against switching power providers during heat of summer
NORTH TEXAS (CBSNewsTexas.com) - People may get even hotter when their power bill comes after more than two weeks of triple-digit temperatures. But switching power providers right now may not offer any immediate relief.
Summer typically sees the highest contract prices per kilowatt hour for customers, according to Rebecca Bridges, with the online power plan shopping site ElectricityPlans.
In the last day, Bridges said they've seen plans offered climb even higher, increasing 1 to 4 cents, as retailers have had to deal with intermittent price spikes in the market.
"They're backing off," she said. "They're taking their foot off the gas pedal right now in terms of acquiring new customers."
They saw the same thing in July during a previous Weather Watch from ERCOT. When temperatures moderate, plan prices generally will as well she said, meaning those who can wait a few weeks or few months, may find a better deal.
Switching can also mean paying an early cancellation penalty to your current provider, which also won't help you save right now. However, Bridges said if you have the money available it's worth looking at making a change to take advantage of savings in the months ahead.
Prices have come down from a year ago when they were some of the highest ever in North Texas. While you will have to pay that penalty up front, if the savings can make up for that penalty before your current contract would be up, then it may make sense to make the switch.
Looking for a deal that offers an 18-month term, or something that would let you renew next time in the fall or spring, would also be beneficial she said to take advantage of pricing in the shoulder seasons.
The heavily advertised plans offering free nights, or other incentives, often don't often offer much in the way of real savings she said, since pricing in the other hours is adjusted to make up for whatever users are getting for free.
