Choosing an electricity provider in Texas can be an overwhelming task with all the options available. TXU Energy and Ambit Energy are two major retail electricity providers competing for customers across the state.
But which one is better for you? Here’s an in-depth look at how TXU and Ambit compare on prices, plans, customer service and more.
A Brief Comparison Table
| Category | TXU Energy | Ambit Energy |
| Pricing | Generally lower rates | Slightly higher rates on average |
| Contract Terms | 3-60 months | 12-36 months |
| Plan Types | Fixed and variable rates | Mostly fixed rates |
| Early Termination Fee | $150 | $175-$295 |
| Customer Service | A+ BBB rating, positive reviews | B+ BBB rating, more complaints |
| Sign Up Offers | Up to $150 in bill credits or gift cards | No current offers |
| Rewards Program | None | Cash back rewards for paying on time |
| Recommendation | Better prices and customer service | Less flexibility and incentives |
Overview Of TXU Energy
Founded in 2002, TXU Energy delivers electricity to over 1.7 million residential and business customers in Texas. They are owned by leading international energy company Vistra. Some key facts about TXU:
- Offers both fixed-rate and variable rate plans
- Large selection of plan terms (3 months to 60 months)
- Charges a $150 early termination fee for most fixed-rate plans
- Provides online account management and bill pay
- Free nights and solar days plans available
Overview Of Ambit Energy
Ambit Energy is a retail electricity provider based in Dallas that launched in 2006. They now serve over 1 million customers in Texas and several other states. Here’s a quick look at Ambit:
- Mainly offers fixed-rate electricity plans
- Terms range from 12 to 36 months
- Early termination fees of $175 – $295
- Online account tools and monthly billing options
- Rewards program gives cash back for paying on time
Also Read: Differences Between NRG And PECO.
Comparing Electricity Prices
One of the most important factors for Texans is getting affordable electricity rates. How do TXU and Ambit compare on price?
TXU Energy has lower rates among the major electricity providers in most parts of Texas. For example, their 12 month fixed rate plan typically runs around 9-10¢ per kWh depending on your location.
Ambit Energy’s rates are usually a bit higher. A 12 month fixed plan from them will likely be around 11-12¢ per kWh. However, they do offer shorter term 3 and 6 month plans with cheaper introductory rates.
It’s difficult to say definitively who is “cheaper” because rates fluctuate frequently. The best way to find the lowest rates is to get updated pricing from both when your contract is up. But TXU tends to be very competitive on pricing overall.
Range Of Electricity Plans
Both TXU and Ambit offer standard fixed-rate and variable-rate plans.
Fixed-rate plans lock in your rate per kWh for the length of the contract. This protects you from rate spikes. TXU has fixed-rate terms from 3 months to 60 months. Ambit’s range is 12 to 36 months. Shorter term fixed plans usually have a higher base rate.
Variable-rate plans float from month-to-month based on the market. Your rate could go up or down over time depending on supply and demand. TXU has more variable options, including free nights and solar days plans.
For contract flexibility, TXU may be the better choice. Their wide range of fixed term lengths lets you choose a term you’re comfortable with. Ambit has fewer fixed rate options to pick from.
Customer Service Reputation
Good customer service can make a big difference in your overall experience with an electricity provider.
TXU Energy holds an A+ rating with the Better Business Bureau, which indicates customers have been satisfied with their service experience. Complaints are minimal and properly resolved by their customer service team.
Ambit Energy has just a B+ rating with the BBB. They’ve had issues with service quality, billing problems and misrepresentation of rates by sales reps. Customer reviews for Ambit are more mediocre compared to the positive feedback TXU receives.
When it comes to service quality and responsiveness, TXU seems to be the winner over Ambit. Also watch the video!
Sign Up Offers & Rewards Programs
Some providers offer monetary incentives for signing up for service. Here are the new customer promotions typically offered:
TXU – Up to $150 in bill credits, Amazon gift cards or prepaid VISA cards.
Ambit – No sign up offers.
For existing customers, Ambit does have a rewards program where you can earn points for on-time payments and referring friends. Points can be redeemed for gift cards, airline miles and cash rewards. TXU has no rewards program at this time.
Also Read: Differences Between DTE Energy And Consumers Energy.
Frequently Asked Questions (FAQ)
No, Ambit is generally not the cheapest option anymore. They used to have very low promotional rates but their everyday pricing is now higher than many competitors like TXU. It pays to comparison shop electricity rates frequently.
Ambit isn’t a bad company but customer satisfaction appears higher with other major providers like TXU. Research is key – read reviews and check out their BBB rating. Many complaints stem from misleading sales tactics. Avoid variable rate plans that can spike your rates over time.
The cheapest rates are always changing based on market conditions. Currently TXU, Direct Energy, Amigo Energy, and TriEagle Energy tend to have the most competitive pricing. Reliant is on the higher-priced side. Always compare fixed rate plans from multiple providers when your contract expires.
No, TXU Energy and Ambit are still separate competing companies. There was news back in 2016 that TXU’s parent company Vistra tried to acquire Ambit but the deal never went through. Both brands continue operating independently today.
Also Read: Is National Grid Better Than Eversource?
Final Verdict
At the end of the day, the right electricity company depends on your specific needs and priorities:
- If low rates are most important, TXU usually has cheaper plans available.
- For shorter contracts and plan flexibility, TXU has better options.
- Customer service is better with TXU based on reviews.
- Ambit lacks sign up incentives but offers loyalty rewards.
Before switching, take some time to research the latest prices and read customer feedback. Be sure you fully understand all the fees and terms so there are no surprises on your bill.
With electricity deregulation in Texas, you have the power to easily shop for the best rates and service.