Month-to-month electricity plans

How do month-to-month electricity plans work?

Month-to-month electricity plans are a great solution for Texans that require a plan in the short-term. With a month-to-month energy plan, the rate is subject to change on a monthly basis, but you gain the freedom and flexibility to switch plans or providers, renew, or cancel whenever you want.

You have more control over when you switch, renew, or cancel because month-to-month electricity plans do not have early termination fees.

Who should sign up for a month-to-month electricity plan?

Month-to-month plans are great for Texans that are planning to move soon, are selling their home, or are in other scenarios where long-term plans don’t make sense.

If your lease is coming to an end or you’re about to move, a month-to-month electricity plans is ideal for that type of temporary or transitional living situation. By locking in a month-to-month plan, you can end or switch plans whenever you want to match your schedule without worrying about paying a cancellation fee.

If you are in the process of selling your home, you may not to lock in a longer contract. A month-to-month plan allows you to keep the lights on, while giving you the flexibility to cancel when a homebuyer takes over.

Additionally, month-to-month plans are ideal for landlords or property managers that are between renters. You can cancel your plan whenever you want when your new tenant moves in and takes over the electricity.

What are the cons of month-to-month electricity plans?

The cons of month-to-month electricity plans include that rates fluctuate by season, rates are generally higher than fixed-rate plans, and they can be difficult to budget.

• Fluctuating rates: Rates will increase during high demand seasons like summer and winter, making month-to-month plan bills more expensive.
• Generally higher rates: Month-to-month rates are more expensive than fixed rates because electricity providers take on more risk when you don’t commit to a longer term plan.
• Difficult to budget: It’s hard to predict what you’ll spend each month because your rate is variable and is subject to change on a monthly basis.

Month-to-month vs fixed-rate Texas electricity plans

At BKV Energy, we recommend that most customers sign up for a fixed-rate plan because they are more affordable, your rate is locked in, and they are easier to budget.

However, a month-to-month plan can be beneficial for Texans that require increased flexibility and the ability to cancel at anytime without paying an early termination fee.

We analyzed the differences between fixed and variable rate electricity.

How to view variable rate pricing history for month-to-month plans

In Texas, electricity providers are required to publish the rate history for their variable rate electricity plans.

This means you can look at their rate history to help you determine if you’re comfortable with any price changes you max experience while signed up on a month-to-month plan.

Check out BKV Energy’s variable rate pricing history.