What You Need To Know About The Gexa BOGO Plan
The GEXA BOGO Plan (Buy One Get One) is one of Gexa Energy’s most heavily marketed plans. But will it really save you money?
The plan is cleverly named BOGO because the hook for the plan is a 50% discount on Gexa’s energy charge. A 50% discount sounds great doesn’t it? Marketers love to direct consumers’ attention to how much they will save. But, in the end, what you pay is a lot more important that what you save over an arbitrarily high listed price.
For the BOGO plan, Gexa has employing a tried and true method used by retailers probably for as long as there have been retailers. The trick is to artificially inflate the listed price of an item so they can appear to be the hero by slapping on a huge discount. But it’s all just slight-of-hand. In the end, the rate is the rate. And the rate for the Gexa Energy BOGO plan is higher than most other plans.
Here is a closer look at the numbers
Electricity rates are different in different parts of the Texas. For simplicity, we will look at the price of the BOGO plan in the Houston area. The actual rates will be slightly different in other areas, but the analysis still holds.
For the 2000 kWh usage level, Gexa lists the average all-in rate as 12.9¢ kWh. It’s very important to understand that this rate is after the 50% discount. You will not get a 50% discount from this rate. If we check the real-time Vaultelectricity.com electricity rate comparison tool we will find that there are 31 plans from 13 different electricity providers with a cheaper electricity rate at the time of this writing. In fact, every other Gexa Energy plan is cheaper than the BOGO plan.
Here is a breakdown of how the average electricity rate for this plan is calculated.
The Gexa BOGO plan consists of the following components:
|17.56¢ / kWh
|TDU per kWh Delivery Charge
|3.87¢ / kWh
|TDU flat Delivery Charge
If there is another plan with a higher energy charge than that in all of Texas, we are not aware of it.
If you add it all up you come up with a total rate (prior to the 50% discount) of 21.7¢ per kWh. Wow!
By applying the 50% discount to the Energy Charge, the rate is brought back down to 12.9¢ per kWh. Let’s see how that rate compares to other electricity plans including other plans offered by Gexa Energy.
Gexa BOGO Plan Vs Other Electricity Plans
- The TDU charges are standard charges that all providers pass through to consumers. These fees are paid to the company that maintains the wires in your area. For Houston this is Centerpoint.
- There is also a Monthly Service Fee of $9.95 if you use less than 1000 kWh. Since we are looking at the math for a 2000 kWh usage level, this fee doesn’t come in to play. But if you have a smaller home or apartment you will likely be hit with this fee.
The lesson here is that if you are shopping for an electric provider in Texas you must be able to see through the marketing and look at the math.