48% of Texans Believe They’re Paying Fair Electricity Rates
While Texas’s deregulated energy market is designed to give consumers the power to choose their electricity provider, satisfaction with this choice is mixed. Our survey reveals that 63% of respondents would recommend their current provider to a friend, indicating a majority of positive experiences.
However, when asked if they believe they’re paying a fair rate, only 48% responded affirmatively, while 23% said “no” and 29% were unsure. Additionally, when asked what they disliked about their current provider, 44% of respondents listed cost as an aspect they didn’t like about their current energy company.
Texans Spend 8.1% of Their Monthly Income on Electricity Bills
Energy costs represent a significant portion of household expenses for many Texans. On average, respondents reported spending 8% of their monthly income on electricity bills. The majority of monthly bills fall in the $100 to $150 range (33%), followed by $151 to $200 (25%) and $200 to $250 (14%).
Bill affordability remains a concern for a substantial portion of consumers. When asked if they could afford a $50 increase in their monthly bill, 64% said yes, but more than a third (36%) said they could not absorb such an increase in monthly energy costs. This data aligns with the average electric bill in Texas, which continues to be a significant household expense.
35% of Customers Have Been With Their Provider for Five Years or More
The data indicates strong customer retention among energy providers, with 35% of respondents reporting they’ve been with their current provider for five-plus years. Another 19% have stayed for one to two years, while 15% have stayed with their provider for two to three years. Only 13% reported being with their provider for less than one year.
Despite this apparent loyalty, consumers have varied likelihoods of switching providers when their contracts expire:
- 16% said they’re highly likely or somewhat likely to switch
- 22% indicated they may stay with their provider
- 25% said they definitely won’t switch providers
Interestingly, 59% of respondents said they would switch light companies for $50 or less in savings. This indicates that while meaningful cost savings are required to overcome switching inertia, customers are interested in switching providers to save on energy costs. If you’re considering a change, learning how to switch energy providers can simplify the process.
TXU Energy and Reliant Energy Dominate Market Share
Our survey identified the top energy providers by market share in the surveyed areas. Based on our survey, TXU Energy and Reliant Energy share 42% of the total market, with the next closest provider holding 4%.
- TXU Energy (23%)
- Reliant Energy (19%)
- Gexa Energy (4%)
- Ambit Energy (4%)
- Just Energy (4%)
- Direct Energy (4%)
Reliant and TXU both earned the highest ratings in our review, with 4.9 out of 5 stars. While these providers are known for excellent customer service, each typically charges premium prices to match the white-glove service. However, the four providers that follow in market share tend to lead in Texas electricity rates across various service areas.
Low Prices and Good Customer Service Top Consumer Preferences
When asked what they like most about their current electricity company, consumers overwhelmingly mentioned cost (54%), followed by customer service (38%), length of plan term (536) and provider communication (29%).
The most commonly cited disliked feature was cancellation/switching fees (27%), highlighting this as a significant barrier to market mobility. Additionally, 44% of respondents said that what they disliked most about their provider was their cost.
When asked to rank important factors for choosing a provider, with one being most important and five being least important, “transparency with fees” emerged as the clear priority, with an average ranking of 1.96 out of 5. This was followed by:
- Customer service ratings (3.13)
- Seamless online experience (3.16)
- Recommendations from existing customers (3.35)
- Customer renewal rates (3.40)
Understanding the various types of energy plans can help you find options that prioritize these crucial factors while understanding how to secure the best cost for your energy needs.
55% of Consumers Unaware of Provider Marketing Tactics
A significant finding is the lack of awareness regarding provider marketing tactics. In our February 2025 survey, 55% of respondents were unaware that some energy providers use bill credits and rebates to show a low advertised rate that rarely matches your effective rate.
When asked about the most confusing aspect of choosing an energy plan, common themes included:
- Understanding kilowatt-hour (kWh) usage and pricing
- Comparing plans across providers
- Identifying hidden fees and actual costs
- Determining the best fit for individual usage patterns
Many consumers could benefit from learning how to read the Texas electricity facts label (EFL) to better understand plan details and avoid confusion.
Weather Changes Drive 78% of Bill Fluctuations
An overwhelming majority identified weather and seasonal temperature changes as the primary factor contributing to bill fluctuations (1,244 respondents, or 78%). Other significant factors included:
- Changes in usage habits/routines (478 respondents, 30%)
- Equipment maintenance issues (158, 10%)
- Home improvement projects or renovations (120, 7.5%)
Provider Satisfaction Averages 3.8 out of 5
Overall satisfaction with providers averaged 3.8 out of 5, with varying scores across key categories for which we rated providers.
- Online experience (4.0/5)
- Customer service (4.4/5)
- Fee transparency (3.6/5)
While these scores indicate general satisfaction, they also highlight room for improvement, particularly regarding fee transparency.
Houston Residents Pay 8.1% of their Income on Electricity, Dallas 9.2%
Our survey revealed significant regional differences in how Texans experience the deregulated energy market. Here’s how major cities compare:
Houston vs. Dallas: Price Perception and Provider Loyalty
Houston residents reported higher satisfaction with their energy providers (4.0 /5) than Dallas (3.8/5). More Houston consumers (52%) believe they pay fair rates than Dallas residents (48%). This difference may be related to income impact — Houstonians spend approximately 8% of their income on electricity bills, while Dallas residents spend 9%.
Galveston Shows Highest Satisfaction Despite Higher Bills
Among the regions analyzed, Galveston County residents reported the highest satisfaction (4.1/5) and the highest percentage believing they pay fair rates (64%) despite having the highest average bills at $203 per month.
Regional Provider Preferences
TXU Energy dominates in Dallas (29%) and Fort Worth (29%), while Reliant Energy leads in Houston (26%) and the Nueces County and Corpus Christi area (32%).
For city-specific information, consumers can check Houston electricity rates or Dallas electricity rates to find the best options in their area.
The survey reveals that while Texans generally appreciate the power to choose their electricity provider, they face challenges navigating the market’s complexity. High levels of provider loyalty contrast with dissatisfaction about rates and fees, suggesting that switching barriers may keep consumers with providers despite concerns about costs.
The data points to clear opportunities for energy providers. Enhancing fee transparency, simplifying plan comparisons and educating consumers about energy usage could address key pain points, potentially helping secure more customers with greater loyalty.
For consumers, greater awareness of marketing tactics and a better understanding of plan structures could lead to more satisfactory choices and potential cost savings.
As energy costs continue to represent a significant portion of Texans’ household budgets, these insights offer a roadmap for both consumers and providers to navigate the deregulated market more effectively.
Our Survey Methodology
The Home Energy Club team surveyed 1,600 Texans living in zip codes where the electricity sector is deregulated. We conducted our poll via Pollfish in February 2025.
We designed this survey to better understand consumer experiences in Texas’s deregulated energy market, where residents can choose their electricity provider. With rising energy costs and increasing complexity in plan offerings, we wanted to identify what matters most to consumers, how they make decisions and where they encounter challenges when selecting and staying with energy providers.
The survey included respondents from various demographic groups and regions across deregulated parts of Texas. Questions covered satisfaction levels, billing experiences, provider preferences and decision-making factors. By analyzing these responses, we aim to help consumers make more informed choices and providers better serve their customers’ needs.
