Prices are so high! What’s going on?

You’re right, electricity prices are higher now than any time since 2008. You’re probably wondering how much longer these high prices will continue and whether or not you should consider switching electric providers. As you consider your options, keep in mind a few key points.

NATURAL GAS PRICES DIRECTLY AFFECT YOUR ELECTRIC BILL.

While the Texas energy market is complex with many dynamic forces impacting prices, one factor is at the center of the recent hike in electricity rates – natural gas. Did you know that more Texas electricity is produced from natural gas than from any other source? Coming out of the pandemic, lack of supply and growing demand, coupled with the ongoing conflict in Ukraine, is causing shortages of natural gas in the US, driving up prices to more than double what they were just two years ago.

CHAMPION IS COMMITTED TO PROVIDING THE BEST VALUE – ALWAYS.

Since 2005, Champion has grown to become one of the largest competitive residential electricity providers in Texas that has never been affiliated with a local utility. A main component of our success has been our unwavering commitment to price transparency. Only temporary gains come from deceiving customers with prices that look cheaper than reality, and that is not our goal. Even though today’s high prices are uncomfortable, we believe all of us are better off if we are straightforward about price. We are committed to always providing the best value for our customers – when market prices are up and when they are down.

IF IT SEEMS TOO GOOD TO BE TRUE, IT PROBABLY IS.

Unfortunately, it has become a common practice – even among companies most would assume are reputable – to offer electricity plans that appear to be much cheaper than they really are. The two most common features of these plans are tiered rate structures and usage credits. Both present a low price to shoppers initially but generate higher actual prices as customer usage fluctuates each month. Be cautious when you see price offers that look surprisingly low. If it seems too good to be true, it probably is. Learn more about common pricing gimmicks here.

So, what should you do? We understand that it can be tough to pick a plan when all of your options appear pricey, so here’s our best advice. Take a short-term plan, something less than two years. No matter what plan you pick, you’re likely to face the highest energy bills you’ve ever had. At this time, we do not recommend locking in a price that high for longer than two years. We don’t know for sure that prices will fall within the next year, but if they do, you want to be able to get off of the high prices as soon as possible.

Choosing an electricity provider can be overwhelming, especially during times of extreme market fluctuations and global unrest. Champion representatives are on hand to walk you through your options. Call us today!