TXU is spending a lot of money to market its new electricity plan, Season Pass 24. Historically, electricity plans marketed by TXU are deceptive and expensive for the consumer. TXU’s "Free Nights and Weekend" plan is one we previously reviewed and definitely do not recommend.
So, how does TXU’s Season Pass 24 plan compare?
The offer: “Season Pass Savings of 50% off the Energy Charge” in the three summer months and three winter months.
On the surface, the plan sounds good. In Texas we all know how big those summer bills can be, and, if you have electric heat, the winter bills can generate some high costs too.
What’s the catch? Energy Choice Experts finds 3 areas of concern with this plan.
- First, the spring and fall rates are extremely high! When you factor in all fixed and variable monthly costs, the effective cost/kWh at 500, 1,000, and 2,000 kWh are 18.0, 16.5, and 15.8 cents/kWh respectively. This is more than twice the rate of 6.0 to 8.0 cents/kWh, the rate ECE considers competitive.
- 50% savings in the summer and winter sounds great, but what is it really? Look closely and you’ll see the discount is only on the Energy Charge. When you factor in all the costs, the effective cost/kWh at 500, 1,000, and 2,000 kWh are 12.4, 10.9, and 10.1 cents/kWh respectively. That’s more like 33% off versus their 50% off claim. Additionally, the “discounted” rate does not even come close to the competitive rates noted above.
- There’s also a catch with TXU’s definition of "summer" and "winter," which works to their advantage and not yours. This year, summer is from June 20th to September 22nd, but the TXU Season Pass summer discount applies to the bills you receive in June, July, and August. So if your monthly meter reading is on the 15th, your discounted rate is actually from May 16 to August 15, which means you would pay 16 to 18 cents/kWh during 40% of the summer. If TXU can measure usage by time of day for their free nights program, shouldn’t they be able to align this plan with the real days of summer?
In summary, do not sign up for this plan. It is full of deception and high prices. As we have seen in the past, if TXU spends heavily on marketing a plan, you know it's a bad deal.
Energy Choice Experts is here to keep our customers from falling for these gimmicks. Provide us with your usage and we'll give you the straight answer on your Lowest Annual Cost Energy Plan for a one-time fee of $35. We guarantee that you can't find a lower annual cost plan than we can.