Reliant Energy, the second largest energy retailer in Texas, last week announced it is selling its Texas operations to power plant operator NRG Energy. Reliant was originally spun off from the old Houston Lighting and Power, while NRG has bought most of the old HL&P plants, so the deal represents something of a re-integration of the Texas electric market. While the deal has the potential to result in customer savings, customers also need to make sure they get the benefits of lower prices, rather than the savings being retained by NRG. Using SaveOnEnergy.com to find the cheapest electric rate can ensure that customers get the best deal possible, and aren't paying more than they should.
The Reliant sale is being touted as cutting out the middle-man, as NRG intends to sell the power that it generates at its power plants directly to customers, rather than buying power at wholesale and then reselling it as most Texas energy suppliers do.
However, whether this new model results in lower prices for customers depends on whether customers are vigilant about getting a good price. Because other energy companies will still be buying their power at wholesale and using a middle man, their pricing will have to reflect that cost. NRG, therefore, could continue to charge similar prices and still remain competitive, even though its internal cost is much lower by cutting out the middle man. Essentially, NRG could choose to earn higher margins on its sales from selling its own generation at the same pries as competing companies, rather than passing savings onto customers through lower prices.
To combat this play, customers need to force electric companies to compete for their business, rather than just taking whatever quote they get. Getting energy providers to compete for your business is now as simple as a few clicks of the mouse, thanks to SaveOnEnergy.com. With SaveOnEnergy.com's one-of-a-kind retail exchange portal, Texas businesses can get up to eight competing offers from qualified, vetted electric companies in just a few minutes. That means suppliers will be battling each other head-to-head to win the customer's business, and will be offering their lowest electric rate. Customers won't be stuck on a high-margin product, or paying more for electricity than they should. The best part is it's a simple and easy process than can be done any time day or night. Energy providers contact you directly with their best offers, to save you time and trouble. Saving money on electricity couldn't be easier.