Which 12 Month Electricity Plans Have Low ETF Rates?
On the baseball diamond, a shortstop must be able to pivot in an instant. At the crack of the bat and the flash of the ball’s reddish white blur, the fielder turns to make the play. When it comes to retail electricity plans, your ability to pivot to a new one may be your best play. But an early termination fee, or ETF, can stand in your way of switching to a new electricity plan. However, some plans have very reasonable ETFs. These plans can give you the flexibility to make a move that will save you more cash over time. Let’s check out these low ETF rate 12-month plans that won’t hamper your ability to play the field.
Find a Low ETF Rate
The Pulse Power Texas Saver 12 and the New Power Texas Power of Credit 12 plans have nearly identical electricity facts labels. Both plans advertise a reasonably competitive rate of 8.0 cents per kWh. While most of today’s plans have early termination fees of at least $150, these plans weigh in at $125. No matter how early you terminate your contract, you pay that $125.
It’s sometimes argued that ETF rates which stay constant may cost you less over the long term — IF you leave the plan soon after starting it and IF you switch to a plan with a much lower rate. Unfortunately, that’s also easier said than done.
A Steadily Dropping ETF
Sometimes retail electricity companies structure their early termination fees differently. Rather than a flat fee, they charge an amount for each month left on a customer’s contract period. As a result, for each month you remain with your provider, the less you will need to pay to leave the plan early. Typically, the last two months will have a low enough ETF rate that makes it less costly to leave early. That’s how the ETF works on the 4Change Energy Maxx Saver 12 plan. This plan’s average price is 8.8 cents. The ETF rate for this plan is $20 for each month remaining on the contract. Let’s spin this forward in a practical example.
Say you sign up for this plan now and want to switch when prices typically drop around April. You’d be about five months into your contract which means you would pay $20 for each of the seven months remaining on your contract. That factors to a $140 early termination fee. Will the savings on a new plan be worth it at that point? That depends on how low the new plan’s price is.
Completing Your Contract
If you decide not to switch plans and therefore spare yourself from the ETF, you still need to shop for Texas electricity. Just before your plan ends, you should find a new plan to suit your electricity usage needs. If you don’t, your retail provider will move you to a variable rate plan. So you definitely want to lock in a new plan to avoid fluctuating — and often high — prices.
Make The Switch
Shopping electricity rates helps you keep your eye on the ball. Sure, you probably want to switch plans now, or you may want to switch again later when you decide coughing up the ETF is worth it. Either way, you can find the best Texas electricity plans on https://www.texaselectricityratings.com. Switching is easy because it takes just a few pieces of information and a few clicks. Then, you let the savings roll in.
