Electric companies in Texas make up one of the most successful competitive electricity markets in the United States. Texas has over 40 Retail Electric Providers with more providers entering the market everyday. Only the smart and financially savy companies stay around for any length of time. Spark Reliant Energy would be a success story of a new electric company working their way to the top.
Risk Management strategies among the Retail Electric Providers –
When Texas energy suppliers compete in Texas they all have to start with their Risk Management strategy. This is the strategy the energy traders use at the trading desk. A big part of what energy traders do is buy off the Natural Gas futures market. They then hedge that energy as insurance against a large increase in price.
Amigo Energy and Spark Energy competing –
Amigo Energy and Spark Energy have been competing with each other for the residential electricity customers looking for the cheapest advertised price. As they began to race to be the lowest a few other providers like Hudson energy and Stream got in the mix. We now have several discount electricity providers in Texas. Some of them have slightly better contract terms then others. The important thing to do is read the facts label for each electricity rate plan making sure their are no hidden fees.
Residential Electricity Facts Label –
All 40 or so Retail Electric Providers have to have a Residential Electricity Facts Label. They have this in place so that the consumers who buy their products can have a standard to look at to make sure they are not being tricked. The facts label is clear and straight forward. Some of the variable rate plans are not very clear however. There are a few fixed electric rate plans that have facts labels that are hard to decipher. The rate is different for each tier of usaeg one may use. If natural gas is a part of the price then it look seven more complicated. These complex labels are meant to confuse and almost always the provider has it bent in their favor. Make sure your clear about the facts label before signing a contract. As an example, Amigo Energy’s facts label is clear as well as the Spark Energy facts label.