On January 1, 2002, TXU Energy started offering service as a certificated retail electric provider. In 2013, TXU delivered product and service options to about 10,000 residential and business customers. Just recently, TXU Energy customers surpassed one billion in free kilowatt-hours of power via TXU's plans.
We like the fact that TXU Energy offers month-to-month contract options for its customers. Also, the company's longest contract is only 24 months, just long enough for customers to keep a fixed price but not too long in comparison to other long-term contracts. Customers can feel comfortable having both options available so they can make the best decisions according to their unique situations.
Many deregulated energy companies charge monthly service fees that can be as high as an additional $10/month on top of their energy rates. It would be nice if TXU Energy didn't charge anything at all, but even though they do, they only charge $4.95 each month. This is great in comparison to other companies because most charge in the $10 range, and you'll find a couple companies that charge even more.
We like that TXU Energy has several different payment types available for its customers. This includes bank account options, electronic checks, regular checks, and credit or debit cards. This makes it convenient for customers so they can make the best choice for their financial benefits. Companies who offer one or two options limit the number of potential customers they can attract because not all customers have access to their limited payment options.
When comparing TXU Energy's electricity rates to other companies, it does not have the best prices. The company falls right in the average categories charging $0.105/kWh for fixed rates and $0.104/kWh for variable rates. By no means does it have terrible pricing; customers can find much higher costs with other companies. On the other hand, TXU Energy is not even close to being a leader with competitive pricing. Not only does TXU Energy have mediocre electricity rates, but other charges such as cancellation and late payment fees aren't the best either. TXU Energy charges $150 when a customer cancels a contract. Again, this falls right in line with a majority of other companies, but in order to be the best you want to out-price others whenever possible. Late payments are charged 5 percent of the year contract. The actual price will obviously vary according to how much your rates are, but TXU Energy isn't making its fees competitive. We have found that the companies who want to make a statement are only charging 1.5 percent.
Customers dislike having a diificult time finding information online about a company. We found this to be the case with TXU Energy on a couple of accounts. First, we couldn't find any information on natural gas rates. This could either mean that the company does not offer natural gas options or it would rather have customers call in for the rates. Whatever the reason, TXU Energy gets docked points from its Overall Score. Also, we couldn't find how much is required for a deposit. Most companies do require one, so not knowing this information upfront could be a problem for some people. Lastly, we couldn't find the cost for the minimum usage fee. This is what companies charge at the minimum regardless of how much energy the customer uses. Most other companies disclose their pricing, while TXU Energy does not. The company needs to be transparent with its fees and pricing to earn customers' business and respect.
Although the pros outweigh the cons in our review of TXU Energy, we don't recommend the company because there are problems with the rates. Whether it is that they are too low in comparison to other competition or the company just flat out does not disclose important information, we see problems with both of these issues. There are several other companies, especially in the Texas area, that have better options available.
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