DALLAS — Many Texans may be overpaying for electricity, a survey from Dallas-based online energy marketplace EnergyBot shows.
The study, which surveyed 501 customers in Dallas and Houston, showed that the majority of those who signed up for plans with free night and weekend bill credits are paying more than those who signed up for traditional fixed-price plans. As part of the survey, EnergyBot gathered data from the participants, which ranged from Oncor and CenterPoint Energy customers with apartments, small homes and large homes, for a year.
“To get the full picture, we factored in all charges, including energy charges, supplier fees, TDU charges, and any bill credits,” EnergyBot said. “Our calculations used specific formulas to determine the real rate per kWh and the annual costs for each plan.”
“While 87% of survey respondents prioritized finding the cheapest plan, 98% did not select the least expensive option. The cause? Language and marketing. Consumers associate ‘credit’ and ‘free’ with savings so they assume these plans are the cheapest,” the company added.
Specifically, the survey showed free night and weekend plans cost 30% more than traditional, fixed-price plans.
“Key findings reveal that real rates deviate from advertised rates by up to 45%, with many consumers lacking the tools to accurately compare plans. Despite 87% of surveyed consumers prioritizing cost, 98% did not select the least expensive option when given a choice, often swayed by promotional offers,” EnergyBot says. “The study underscores the need for improved transparency and the use of tools to help consumers better understand and select the most cost-effective electricity plans.”
The study also found that bill credit plans, which are plans that offer credit on bills after certain electricity usage thresholds are met, cost 24% more (or about $1,072 annually) than traditional, fixed-price plans.
To view the full study visit EnergyBot’s website.
