Can TXU’s electricity ad campaign be trusted?
Tyler Texas has begun to see an influx of ad campaigns in the form of billboards for both Reliant Energy and TXU Energy. These two large energy companies claim to now offer lower electric rates. It’s similar to the Jewelry stores in town that offer the occasional 75% off sales. Well what would someone be doing charging 75% above a good discounted price in the first place?
Relying on Name Brand Recognition
TXU and Reliant Energy have relied on name brand loyalty while charging a little extra then everyone else. Now they are coming down on their electric rates. The problem comes in when you have your rate hiked up again after not paying attention. The Telecom industry did the same thing. Once you become comfortable again with the big guy they may decide to go up on the electric rate again and then where will you be?
Tyler Electric Companies Competing With TXU
Right now there are actually several other providers that beat the prices against both TXU and Reliant Energy. The most competitive electric company changes every few months as the energy trading desks change their risk management policies. Having a broader policy allows some companies to sell their electricity for quite a bit less then a company with a more conservative approach.
Energy Trading Policies Have Everything To Do With It
These policies constantly change as energy providers try to compete with each other without getting themselves into trouble on the markets. If you are a large enough customer, using well over 5 megawatt hours in electricity a year you may even get a rate below their profit margin. They sometimes wil do this so they can collect you for your next contract sign up. At that point they may add some additional Retail Margin to make a profit off your company. These situations are fun to take advantage of and we look out for opportunities just like this.
We can also place your company into a reverse electric auction. This involves aroundÂ 20 different electric companies competingÂ for your business. As they bid they come down on the electric price. The more electric companies in the mix allows for a more competitive auction. We facilitate this type of auction and place the top 3 bids in a proposal which can be refreshed daily.
Let us know when your interested in something like by speaking to an energy consultant.
You may call us at 1-800-971-4020