June 4, 2008 admin

Etricity Electric Company, No longer in business?

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Did Etricity go out of Business?

We have been told that Etricity electric company out of Denton Texas is but another electric company that has gone out of business here in Texas. What is the likely reason they had to close their doors? Most likely, just like National Power Company, they did not hedge their energy. Etricity may have bought their energy straight off the MCPE index market in Texas without hedging their energy. The problem with that is that it is like buying one stock and hoping it goes up even though you do not have a portfolio of other stocks to hedge against one of your stock picks tanking.

These Electric Retail Margins are Thin

Electric companies in Texas work from very small tight margins. When an electric company sells straight MCPE rates as fixed electric rates and do not hedge the price of the energy they either have to eat the loss if the price goes backwards or attempt to pass that cost onto the customer. The PUCT has recently put a stop to allowing electric companies to pass on the cost to the customer. A major problem with National Power company and Etricity Electric provider is that they have $200 – $300 deposits entrusted to them by their customers that these customers will never see again. Another company by the name of Prebuy Electric did not require a deposit but some customers who prepaid for their electricity never received that electricity and were switched to the POLR rate before they could run out their prepaid electric service with PreBuy Electric. A lot of people who really need that money no longer have it.

If you are an Etricity customer you have been switched to the Provider of Last Resort by the Texas government and are paying anywhere from 22 – 30 cents kWh. In comparison a cheap 12 month fixed electric rate as of June 4 2008 goes for about 14 – 15 cents kWh. If you were an Etricity customer you need to sign up with a new provider ASAP to avoid paying the 22 – 30 cent kWh rate.

Discount Electric Provider Recommended for Etricity Customers

We recommend Startex Power as a reputable low cost provider to switch to. You can sign up on their discount electric rate here: Startex Power discount 12 month fixed rate offer. (Other terms available)

If you would like to speak to someone immediately you may call the number below and an energy consultant will answer your questions.

1-800-971-4020

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

Comments (13)

  1. Jorge

    What do I do now? I gave Etricity a $300.00 deposit a week ago. Should I contact the PUC?

  2. Jim Smithies

    All Etricity customers need to file a complaint with the PUCT. You just lost your $300 deposit to a pizza guy who started an electric company. How do these guys get their funding and why does ERCOT and the PUCT approve them to sell energy?

    File a Complaint with the PUCT

  3. Brooke

    You wrote, “A major problem with PreBuy Electric company and Etricity Electric provider is that they have $200 – $300 deposits entrusted to them by their customers that these customers will never see again.”

    You should really research info before you go posting it out on the web. I don’t know whether or not Etricity required an upfront deposit to start service with their company or not, but customers NEVER paid a deposit of ANYKIND to PreBuy Electric. Money paid by the customer to start their service paid their first month of service. Hence the term ‘prepaid electric’ service.

  4. Randy Halper

    Jorge,

    How did u make your depost? by check or credit card?

    If you used a personal check call your bank immediately and find out if the check has cleared. If not have the bank put a stop payment on the check.

    If you paid by credit card call your credit card company and have them file a dispute that you never received the services promised for your $300. The credit card can reverse the charge.

    I am a national power customer and we are all in a similar situation….national power got of the the business on May 30.

  5. Robert

    People, these rates are going up and up as the temperature rises. I’d recommend that if you are on a month-to-month, that you secure a fixed rate as quickly as possible. Contact me at lightsforlow@yahoo.com for further details.

  6. Jorge

    I paid at a pay station….I can’t remember if it was Money Gram or Western Union. Do you think I should go back to the store? I will have to look for my receipt to make sure.

  7. sorry for all the bankrupt companies out there, but if you want a good electric provider, AMBIT ENERGY is the way to go. Its a tough market out there, so check out all the hidden charges before you switch your service. Good Luck to all

  8. surena

    I was with etricity and moved while trying to have them disconnect service. Was dropped to another company and they are trying to charge me a deposit and the estimatied amount that was on my final bill.What do I do because I really don’t owe this amount?

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