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TXU Energy Says No to Variable Rate Plans

06-03-2011

TXU Energy helps consumers conserve electricity and educates them on the risks and realities of variable rate electricity plans.

Things can change in the blink of an eye, but customers’ electricity rates shouldn’t. To help customers save money and better understand the unpredictable nature — and economic risks — of variable rate electricity plans, TXU Energy continues to develop plans, products and resources that can help Texans conserve electricity and save on their monthly bills.

“At TXU Energy, we don’t offer variable rate electricity plans,” said Chief Marketing Officer Michael Grasso, “because we care about helping our customers control what they spend on electricity.”

Variable rate electricity plans typically offer low introductory rates per kilowatt-hour that may not last more than a month or two, and they can increase with no advance warning to customers. The providers who offer them can increase the rates of these plans as much and as often as they choose to. In fact, some of these plans have increased as much as 100 percent or more in recent months. Customers should also pay attention when their contract terms end because some retailers will move them to variable-rate plans when their contracts expire.

A recent survey shows that most consumers are unaware of the economic risks of these plans and don’t understand that increases can happen without advance notice. To combat this practice, TXU Energy has launched a free online resource at txu.com/novariable.

The company has also launched the TXU Energy No Vari-a-BULL Sweepstakes. According to Grasso, the promotion extends the company’s conversation with consumers across Texas, including those who have shared their own stories about the wild rides they experienced with some variable rate plans in recent months.

“Customers deserve the peace of mind that comes with stable pricing and no surprises,” said Grasso. “That’s the driving force behind the customer relationships that we are highlighting with our new sweepstakes.”

The promotion offers Texas electricity customers a chance to win a free electric vehicle if they switch to a TXU Energy plan between now and December 31, 2011. Texans can also enter by sharing their own wild rides with variable rate plans via the company’s Facebook page, which includes full sweepstakes details. No purchase is necessary to enter or win.

TXU Energy is the only major retailer in Texas that doesn’t offer variable rate plans. Click here to learn why.

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