Don’t Get Bitten This Winter By Your Variable Electric Rate

Variable electric rates are not all bad but there are problems with them that if not understood can leave you like many others, very confused when your rate goes up.

As the name implies a variable price does not guarantee by any means that your price will always stay the same or go down but never up.

The variable price is just as likely to go up as it is to go down.

Most electric companies in Texas will give you an introductory rate when getting you to switch to their variable price. The rate looks exceptionally low compared to locking in at a much higher fixed contract for 12 months.

Many people simply see that cheap variable intro rate and sign up. Once your rate goes up and you realize it has gone up it is usually too late to switch away before you get a sticker shock electric bill in the mail.

It is possible that 45 days of electric usage could have accumulated during the time your price was jacked up. Since you get billed every 30 days you will likely disconnect a week or so after that.

You will get billed at the higher rate for over a month before you can switch away and this may have caused you to spend $200 or more than you were planning on.

If your price follows an index like natural gas you can rest confidently when your rate is high because you know you will be rewarded when commodity prices come down.

The problem is that most providers do not make it very clear how their variable price works and so you really have no assurance of anything.

To save you all this headache try a fixed rate like what I usually go with. I sign up for 12 months on a fixed plan and have no worries for a year. At the end of the year I get a reminder email to shop prices and I simply renew with who I consider to be the best provider for another year.

Freedom Power, are they a Good Electric Provider?

Looking for a Good Electric Provider that Doesn’t Require a Deposit?

Most electric companies in Texas require a deposit when signing up for electric service. There are a few that do not require a deposit and out of these there are only a couple that we would recommend using. Our compare tool on the top right allows you to see several no deposit offers. Typical providers check your credit history but no deposit providers get in without a deposit. The only other option is prepaid electricity service that is usually based on estimated electric usage instead of actual electricity usage. Freedom Power and DPI Energy are two of the more well known prepaid electric companies in Texas. In our opinion a no deposit or low deposit choice is a better option as you are billed for actual electric usage and are rewarded a lower electric rate.

Freedom Power is one of only a few Texas electric companies that offers a prepaid electricity service option for Texas energy consumers. We regularly receive calls and comments from disgruntled Freedom Power customers who claim their service was cut off without proper notice. Chances are most of these customers just simply did not live up to their part of the deal by paying their prepaid service for the following month. The PUCT does however require that a Texas electricity company give their customers proper notice before turning that customers service off because of non payment. It is important that you go back and read the contract you signed with Freedom Power as a reminder to what you may have agreed to when signing up with this electricity company. This will help determine if you or your electric company is to blame for the disconnection of your electricity service.

If you have a question about your Freedom Power electricity bill we recommend you call Freedom and have them go over your bill with you as well as answer any questions you may have. You can also call the PUCT and confirm that your electricity bill and contract are according to PUCT rules and regulations if you have further questions after talking with Freedom. The state should be able to send you to the PUCT website where you can read the rules and regulations Texas electricity companies must follow and confirm if your bill and contract as well as possible termination is according to the rules the PUCT has setup.

A Texas electric provider needs enough capital for the hottest summer and the coldest winter or they will go out of business. You just can’t enter the Texas market with $100,000 and no more capital then that and expect to stay in business. An electric company in Texas is easily exposed to energy market risk and volatility. Since Freedom Power sells electricity as a prepaid service they are not exposed to as much risk as other electricity companies because if the customer stops paying for electric service they can cut off service. This allows this electric company to offer a prepaid electric service to low credit customers and protects them from multiple customers defaulting on their electricity bill.

If you would like to leave a customer review of Freedom Power positive or negative please use our comment section below.

If after talking directly with Freedom Power to resolve a question or issue and you still have more questions you can file a complaint with the Public Utility Commission of Texas here or call them: File a Complaint

The nature of the prepaid electricity business requires for more disconnects than Texas electricity providers that take on good credit customers. Because more people fail to pay their charges with a prepaid electricity company there will be more disconnects on average. Customers from time to time may be confused regarding electricity costs and charges and have been known to refuse to pay their electricity bill. These confusions could be real or imagined but either way it is important to call your electric provider right away to get down to the bottom of the issue.

Any ambiguity in the advertised electricity rate in the contract is usually translated how the electric service customer perceived the electric rate they were agreeing to rather than what the electricity provider may have meant. It is important that the electric company make the rate clear and understandable to any potential customer coming to their ad or website to sign up for electricity service. If you feel like you are paying a higher rate than you were advertised just call your provider and explain your issue. Take down notes about the terms of service they refer to when summarizing what you originally agreed to. You can always take this information to the PUCt and go back over it to explain why you believed the rate was something other than what the provider intended.

A comment below from someone talking about their upstairs neighbor isn’t accurate as Freedom probably disconnected that customer because they did not pay their electricity bill. Prepaid electricity requires the customer to take a more proactive role in paying for their electricity service since you pay and then receive electric service. Most of us use electricity and then we are billed for it. We then have time to review the bill and pay for the service. A low credit bad credit risk customer put in the situation of being proactive in paying their electricity bill does not make for a good situation. Chances are these customers may frequently wait until the last minute to prepay each and every month. If prepaid electricity service isn’t something you like we recommend saving up for the large deposit that will be required when using a more traditional electricity company like TXU Energy or Reliant Energy.

My upstairs neighbor is (Was?) a Freedom Power customer. Their power just got cut-off. They have been on hold for almost an hour now. Is it possible that Freedom failed to pay the upstream provider for the power they are reselling and the upstream provider issued the disconnects? Sounds like the rats have already left the ship, and it is their customers that are screwed. Now my neighbors will have to get a new provider immediately, pay a new deposit, and join the inevitiable class-action suit to get their money back (which they will never see).

Customers would like their REP License Revoked

There is a Petition to the Public Utility Commission of Texas to Revoke Retail Electric Provider Certificate No. 10078 of Freedom Group, LLC d/b/a Freedom Power.

Lawsuits in the Works

There are electric customers of Freedom Power in settlement discussions. If anyone has information on what Freedom Power may have done to their electric customers we would like to know. Please feel free to leave a comment on the status of the lawsuit with Freedom Power, a Texas electric provider.

Freedom Power Office Location and Phone Number

Agent: Peter J Grosso
Address: 401 B Ferris Avenue, Waxahachie TX 75165

MARVIN E SINGLETON III DIRECTOR PO BOX 560803 DALLAS, TX 75356-0803

PETER J GROSSE DIRECTOR PO BOX 560803 DALLAS, TX 75356-0803

PENI BARFIELD SECRETARY PO BOX 560803 DALLAS, TX 75356-0803

PENI BARFIELD TREASURER PO BOX 560803 DALLAS, TX 75356-0803

KEN WEAVER PRESIDENT PO BOX 560803 DALLAS, TX 75356-0803

Assumed Company Names

Freedom Power
La Raza Electridad

Electricity Bid helps you find an electric rate and provider to save you money and keep life simple.

Get in touch with us!