Pearland Electricity Rates and Comparisons
Lately the credit market has dried up a bit and because of it new apartment renters for the first time will likely be asked for a deposit even if you have no outstanding or bad credit dings. Why is this? Electricity utilities operate on thin margins and because of this they cannot have too many outstanding debts or they cannot afford to both hedge the energy they sell and sign up new customers. Obviously if an electricity company is not making a profit they cannot continue to sell electricity service so unless you have good credit history in the Pearland Texas area you will usually have to come up with some type of deposit amount. Some electricity companies charge as much as $800 to have your electricity service turned on. If you shop around enough you can find deposits as low as $200. If your credit is terrible and you have been late in paying utilities in the past there is usually no way out of having to pay a deposit to your Pearland Texas electricity company. There are some exceptions which we will outline below.
Are No Deposit Electricity Companies Worth It?
Although from time to time there are legitimate electricity companies in Pearland TX offering no deposit choices they eventually quite offering this type of plan because they end up losing money on the deal. What ends up happening is a large percentage of these electricity service customers fail to pay their electric bill. No matter how many incentives a bad credit customer receives from their electric provider they end up making poor choices and fail to pay their bill. The electricity company ends up getting burned and the punk teenager moves back into mom’s. The only other alternative electricity service that offers a no deposit plan are known as prepay electricity service, pay as you go, and prepaid electricity plans. The companies right now that offer these plans in Pearland Texas are Freedom Power, DPI Energy, and a few more.
Pay As You Go Common Scenarios
The bad thing about a prepay electricity company is the way you get sucked into one of these plans. The promise is usually a low turn on fee of $99 – $150. A couple weeks into the plan some of these prepaid electricity companies will demand sometimes more money than the initial turn on fee to keep the Pearland electricity service on. The reason the 2nd amount is higher is because of how high the per kWh electricity rate is they will charge you. You usually cannot get into one of these plans for less than 17 cents per kWh. Imagine you are a low electricity usage customer only consuming 1,000 kWh a month. Most people use more than this but lets say that is all you used with a prepaid electricity company. You will end up spending $170 for one month of electricity. If you are a family living in an apartment you may be using more in the range of 2,000 kWh a month. This would be a monthly electricity bill of $340. Instead of getting sucked into a pay as you go electric plan we recommend paying a deposit in the range of $200 – $400.
What a Prepaid Electricity Bill Looks Like in Comparison to Paying a Deposit Amount
By paying a deposit you will be able to choose a much cheaper electricity plan in the range of 9 – 13 cents per kWh. If you got on a plan that was 11 cents per kWh and you used 1,000 kWh a month your monthly electricity bill in Pearland Texas would be $110. If you used 2,000 kWh a month your electricity bill would be $220 a month rather than $340 a month. As you can see you would recoup your deposit usually in less than 1 to 2 months. You will also get your deposit back at the end of your electricity contract. By signing up on a prepaid electricity plan you are really only putting off a very large amount of money you will eventually have to pay by a few weeks. Instead of putting the inevitable off we recommend signing up on a reputable and traditional electricity company. A traditional Pearland Texas electricity company will allow you to use a months of electricity and than give you a couple weeks to pay your bill. A pay as you go electric company will constantly hound you to prepay again or risk your electricity be turned off.
Check out the electricity comparison chart for the Pearland Texas area above and compare and choose a cheap low deposit electricity company in the Pearland Texas area.