TXU Energy appears to be the most expensive electricity provider in Texas – at least we could not find any company with higher rates. Just a few months ago they said they were not willing to “chase prices” in order to gain/keep customers. It is that mentality that is pushing TXU’s parent company to the brink of bankruptcy. Energy Futures Holdings (EFH) purchased TXU in 2006, and TXU has lost money every quarter since. EFH debt now totals over $40 billion.
TXU Rates Compared to Other Electric Providers
Since the deregulation of our electricity market gave us the power to choose in 2002, Texas consumers have had the luxury of shopping around for their electricity. Before deregulation you didn’t have a choice of which electricity provider you used. You were assigned a provider based solely on your location. For example, if you lived in Dallas, you paid TXU for your electricity. Likewise, Houstonians received their monthly electric bill from Reliant. You had no choice and no voice in the matter.
Current Lowest Cost Providers in TXU’s Area
|Bounce||12 Month||8¢||Learn More|
|Trieagle||12 Month||8.1¢||Learn More|
|Champion||12 Month||8.1¢||Learn More|
|StarTex||12 Month||8.2¢||Learn More|
Unfortunately, not everyone in TXU’s area is aware they now have a choice, and TXU takes advantage of that fact. TXU hopes that they are going to be the only electric company you look towards when needing electricity, so they just throw out a high rate quote and hope you don’t know any better.
But let’s look at the facts. Currently, TXU’s 12-month residential rates are 19.75% higher than the competition. And what about their 12-month Free Nights Plan? The Free Nights Plan is priced a staggering 43.20% higher than competing 12-month electricity plans. TXU’s month-to-month rate is 47.62% higher than competing introductory monthly rates.
It is no wonder TXU has 800,000 fewer customers than they did just a few years ago. With rates that are almost 50% higher than those of the completion, TXU is shedding customers at an increasing speed.