TXU Energy has been coming up with a lot of “free” electricity plans in Texas recently. The latest is called the TXU Energy Free Mornings & Evenings plan. Let’s examine this plan to see just how free it is and compare it to a normal Ambit Energy 12-month plan.
We have compared other TXU free energy plans before.
We searched rates in the Texas zip code of 75040. The first thing we noticed was that the Free Mornings & Evenings plan is an 18-month contract plan with a $295 early cancellation fee. This plan does not charge the energy charge or TDU delivery charges during the hours of 7-10 a.m. and 7-10 p.m. every day. The plan also requires an AMS-enabled smart meter.
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Now we dig into the actual price of this plan. Looking at the Electricity Facts Label (EFL), the plan shows an average rate of 14.6 cents per kWh based on 1,000 kWh usage. This average is factoring in the free nights and evenings (six total hours per day) as 27.7 percent of an entire day’s electricity usage. That is a little above the 25 percent the six hours are in a 24-hour day.
So, let’s say you use 1,000 kWh in a billing cycle, but are not being charge for 27.7 percent of that usage (the six hours of the free mornings and evenings). That leaves 723 kWh you are being charged at 14.6 cents per kWh based on this example. So, 723 x $0.146 = $105.56. And keep in mind, that example only works if you are truly using at least 27.7 percent of your electricity during the two three hours windows in the morning and evening.
Now let’s look at Ambit Energy’s Lone Star Select 12 Month Term Plan. This is a 12-month plan with a $199 early termination fee. The average rate of this plan based on the same 1,000 kWh used is 9.7 cents per kWh. There is no free window with this plan. So, 1,000 kWh x $.097 = $97. That’s still cheaper than the TXU Free Mornings & Evenings plan even using a very generous estimate for the TXU plan. Unless you are truly using more than 27.7 percent of your electricity during those free windows, it’s not a better deal than the current Ambit Energy plan.
In addition to being cheaper than TXU, Ambit also offers an unmatched Free Energy program when you refer just 15 people to Ambit. The company takes the average cost of your referrals’ bills and applies that about to your bill every month, as long as you maintain 15 referrals who pay their bill. People have saved thousands of dollars with this program.