Texas businesses are tough—they weather storms, heatwaves, and grid quirks like champs. But one thing that sneaks up on too many? Overpaying for electricity. With rates climbing in 2025, it’s easier than ever to let energy costs eat into your bottom line. At the Texas Association of Energy Providers, we’ve seen it all—here are five common ways businesses in the Lone Star State pay more than they should, and what you can do about it.
1. Sticking with an Outdated Contract
Signed a deal two years ago when rates were lower? That contract might’ve expired, leaving you on a variable plan that’s creeping up with the market. Texas electricity prices are rising fast, and without a fresh look, you’re likely paying more per kilowatt-hour than you need to.
Fix It: Check your contract’s end date. If it’s lapsed, shop for a fixed rate to lock in stability before the next spike.
2. Ignoring Peak Demand Charges
Big operations—like warehouses or restaurants—can get hit with sneaky peak demand fees. These kick in when you use a ton of power at once during high-traffic grid hours (think summer afternoons). Many owners don’t even notice until the bill lands.
Fix It: Spread out heavy usage or invest in energy-efficient gear. A quick rate audit can spot if you’re bleeding cash here.
3. Not Shopping the Market
Texas has a deregulated energy market—great news, right? But there’s no “electricity store” to browse. Without digging, businesses end up with whatever provider they stumbled into, missing cheaper options just a switch away.
Fix It: Compare rates from top providers. (Spoiler: We do this for you at TAOEP— you will never cut us a check, the providers cover our fees.)
4. Overlooking Hidden Fees
Some plans look cheap upfront but tack on extras—base charges, delivery fees, or penalties for low usage. Small print can turn a “deal” into a budget buster, especially for smaller shops or seasonal businesses.
Fix It: Read the fine print or get someone to decode it. A clean, transparent rate saves more in the long run.
5. Waiting Too Long to Act
Rates are trending up, and hesitation can cost you. Every month you delay locking in a fixed rate, you’re gambling on a market that’s not cooling off anytime soon. Businesses that wait often kick themselves when the next bill jumps 10-15%.
Fix It: Act now—secure a rate before the next hike. It’s like buying hay before the drought hits.
Take Control of Your Energy Costs
You don’t have to overpay to keep the lights on. At the Texas Association of Energy Providers, we partner with the state’s top electricity providers to find you a deal that fits—whether it’s slashing your rate or capping it against future increases. No fees, no hassle, just savings.
Ready to stop overpaying? Visit www.taoep.org or drop us a line for a free rate check. It takes two minutes to see where you stand—don’t let rising rates catch you off guard
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