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UNDERSTANDING TEXAS DEREGULATION MARKET
AND WHAT IT MEANS TO YOU
Buying electricity before 2001 deregulation was an easy one! However, rates were much higher back then.
The good thing about deregulation it has substantial reduce electricity rate through more competition.
There are over 110 utility companies in Texas to choose from along with a multiple product they offer!! So in Texas the commercial market in Texas is buyer beware!
The real challenge for commercial customers in Texas is there so many variable products out there that they don’t even know what the right questions to ask and they just end up shopping for price. Now when there first bill arrives they become upset, when they discover, it was not what they thought it was supposed to be.
Now you will find that Utility companies don’t really have marketing sales team that go out in the field to generate new sales and instead they use Energy Brokers, because it cost them nothing, and only pay when a sale is generated.
Like all industries you will have good energy brokers and those in it just for a fast buck. Now those energy brokers that are in it for a fast buck are not generally deceptive about what they’re selling. They just submit a good price and if the customer does not ask why it so cheap they feel no obligation to inform them why the price is, the way it is.
Well establish brokers work with the AAA Utility companies. Well, it not that beginning brokers don’t want to work with AAA Utility they simply don’t meet certain qualifications. So in the beginning these brokers just getting started usually just have a few small utility companies to work from.
You will find there are multiple factors that affect electricity rates in Texas; such as 1) Cost of fuel to generate electricity 2) Fuel supplies at hand that available to produce electricity. 3) Competition between utility companies that want to compete for your business, and finally there are Broker fees.
Now you should be aware of it that all energy brokers get the same raw pricing from the utility companies then they add their commission and submit a price to the client. The commission that they set for themselves is paid by the utility company. However, it really the end user that pay it, which is the agreed rate in their contract, which includes their broker commission.
So we here at the Real Corporation do not work for the utility companies and we have no loyalty to any one company. Our loyalty is to our customers. We take pride in our fiduciary responsibility to provide our customers good information, which allows our customers to determine what rate they want and what risks they are willing or not willing to take get those desire rates! Now along with providing good information products we also provide a 17 utility company review on our 17 review page.