Who Is the Cheapest Electricity Supplier in Texas?
Last updated October 18, 2026 · By the TexasPowerCost team
There is no single cheapest electricity supplier in Texas. The cheapest plan depends on how much electricity you use and which ZIP code you live in — so the right answer is the cheapest plan for your home, not a company name.
It is the most-searched question in Texas energy, and every "top 10 cheapest providers" list gets it wrong the same way: it ranks suppliers by a single advertised rate at 1,000 kWh per month. But Texas has more than 100 retail electric providers competing in the deregulated ERCOT market, and the plan that looks cheapest at 1,000 kWh is frequently one of the more expensive once your real usage drifts above or below that line.
Why "the cheapest supplier" is the wrong question
In a regulated state you have one utility and one price, so "who is cheapest" has an answer. Texas is deregulated: the company that delivers your power (your TDU — Oncor, CenterPoint, AEP Texas, or TNMP) is fixed by your address and charges everyone the same regulated delivery rate. What you actually shop for is the retail energy plan, and hundreds of those compete on price at every moment.
Because providers design plans — especially bill-credit plans — to look cheapest at exactly 1,000 kWh, the "cheapest supplier" changes the moment your usage does. A 700 kWh apartment, a 1,200 kWh townhome, and a 2,200 kWh house in the same ZIP can each have a different cheapest supplier on the same day.
How to actually find your cheapest supplier
The only reliable method is to compare every available plan at your real usage, priced across the full Electricity Facts Label curve (500, 1,000, and 2,000 kWh) rather than at the single advertised number. That is exactly what our free tool does:
⚡ Find the cheapest supplier for your home →
- Find your real monthly usage. Average the kWh from your last 12 bills.
- Enter your ZIP and that usage. The tool prices every plan in your area at your actual usage, not the marketing number.
- Rank by total monthly bill. Sort by true cost — the cheapest supplier for your home rises to the top.
- Check the contract before you switch. Confirm the term, the early termination fee, and that the rate is fixed.
Keep reading
For more on why a single "cheapest" or "best" provider does not exist in Texas, see The 1,000 kWh Illusion, the best electricity company in Texas, and our city-by-city cheapest-plan rankings. Want the math? Read our methodology.
Frequently asked questions
Who is the cheapest electricity supplier in Texas?
There is no single cheapest supplier for everyone. Texas has 100+ retail providers and the cheapest plan changes with your monthly usage and ZIP code. Compare every plan at your real kWh to find the cheapest one for your home.
Who has the lowest electricity rates in Texas right now?
The lowest advertised rate is usually a bill-credit plan tuned to look cheapest at exactly 1,000 kWh. At your actual usage a different plan often wins, so compare on total monthly bill — not the headline rate.
Why does the cheapest electricity company keep changing?
Providers re-file Electricity Facts Labels constantly and bill credits, fixed charges, and term lengths shift which plan is cheapest at each usage level. The cheapest plan for a 700 kWh apartment is rarely the cheapest for a 2,000 kWh house.
Is the cheapest electricity plan always the best?
Not always. The cheapest plan at your usage is the best on price, but check the contract term, early termination fee, and whether the rate is fixed or variable before you enroll.
How do I find the cheapest electricity supplier for my home?
Enter your ZIP code and your real monthly usage into a tool that calculates each plan across the full EFL curve (500, 1,000 and 2,000 kWh), then rank by total monthly cost. That surfaces the cheapest supplier for your specific usage.