A few days ago, SaveOnEnergy.com warned customers that the looming 50% increase in the Texas wholesale electric price cap to $4,500 per megawatt-hour is straining retail electric providers' balance sheets in several ways, and will likely cause several defaults this summer.
When retail electric providers default, customers are at risk of losing their original electric rate, and being placed on a high, volatile, Provider of Last Resort rate, which can be three times higher (over 20¢ per kWh) than current low prices in the market.
That's why when shopping for an electric provider, looking for a low energy rate isn't enough. Customers need to ensure that the company offering that low rate can stand behind it, and that's why customers need to use SaveOnEnergy.com to find a stable and reputable electric provider that will be able to honor its low rate for the long haul.
An example of the strain facing Texas retail electric providers came sooner than expected as ERCOT, which manages Texas' electric grid, recently announced that retail electric provider Epcot Electric had defaulted on its obligations to ERCOT.
There are over 100 retail electric providers in the Texas market, and weeding out fly-by-night companies from proven and reliable providers is impossible for the average customer, due to both the sheer time and logistics of reviewing that many companies, and because many electric companies are privately held and their finances cannot be publicly verified.
That's where SaveOnEnergy.com helps customers, by screening out unstable or questionable retail electric providers, and only offering low electric rates from financially viable and proven retail providers, who can stand behind their rate.
Because retail providers want to compete for customers through the SaveOnEnergy.com exchange portal, SaveOnEnergy.com has access to their books and records, and risk management practices, to verify that retail providers can offer customers legitimate savings, and that the retail providers can sustain their business through various market shocks prevalent in the electric market -- such as a 50% increase in the wholesale price cap.
The energy experts at SaveOnEnergy.com, with decades of experience in the industry, vet energy companies against a wealth of benchmarks and industry standards for financial fitness, managerial experience, technical ability, product innovation, and customer service.
SaveOnEnergy.com's experts scrutinize retail providers and only recommend those with an established and trustworthy management team with significant market experience. Retail providers must prove their financial strength and wherewithal before they can compete for your business through SaveOnEnergy.com, meaning you can save money with peace of mind that your electric provider will continue to provide you with a low rate, and won't default when the market sees turmoil.