Ambit Energy has grown into a major Texas electricity provider since 2006. Vistra Energy bought the company for $475 million in 2019. Looking for an energy provider means comparing plans and prices that work best for your home. The company’s rates stay competitive at 14.9 to 20.4 cents per kWh as of March 2023. Most customers choose fixed-rate plans.
The sort of thing I love about Ambit Energy is their Free & Clear Nights 12 plan. This plan gives customers free electricity from 9 p.m. until 5:59 a.m. The company’s Green-e certified renewable energy plans are a great way to support environmental sustainability. This piece breaks down Ambit Energy’s plans, pricing, customer service, and market alternatives clearly. You’ll find all the information you need to make a smart choice about your energy provider, whether you want to switch or just review your current plan.
What is Ambit Energy and how does it work?
A turkey sandwich meeting in Addison, Texas marked the beginning of Ambit Energy’s journey. The company started with fold-up tables as desks and grew into a major retail energy provider. Jere Thompson Jr. and Chris Chambless started the company in 2006. Their mission was simple: build America’s finest and most-respected retail energy provider without sacrificing integrity for growth.
Company background and business model
Ambit Energy sells electricity and natural gas services through a unique multilevel marketing approach. The company doesn’t use traditional advertising. They rely on Independent Consultants who connect with potential customers directly. This sales channel now includes more than 500,000 consultants who reach out to customers personally.
The company’s success story speaks for itself. Inc. magazine named Ambit the #1 Fastest-Growing Private Company in America in 2010. The Direct Selling News Global 100 list ranked Ambit 14th among direct sales companies worldwide, with USD 1.30 billion in annual revenue for 2018. Vistra Corp, one of the world’s largest energy companies, acquired Ambit in 2019.
BlueNet™, their proprietary customer management and billing technology, powers Ambit’s operations. This detailed patented software handles everything from utility transactions between customers and transmission providers to web-based account management and billing.
Where Ambit Energy operates
Ambit Energy serves only deregulated energy markets in the United States. Their service areas include:
- Electricity markets: Texas, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and Washington D.C.
- Natural gas markets: California, Illinois, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia, and Washington D.C.
Dallas serves as Ambit’s headquarters, and Texas remains their biggest market. The company has grown beyond Texas while keeping their roots, which helps them serve customers in many regions.
How Ambit is different from traditional providers
Ambit Energy stands out from conventional energy providers. They don’t use big advertising campaigns. The company grows through word-of-mouth and direct referrals. This strategy works well, making Ambit one of the fastest-growing retail energy providers in the United States.
The Free Energy Program makes Ambit unique. Customers can lower or eliminate their monthly energy charges by referring friends and associates. Traditional providers don’t offer this benefit.
Ambit Energy gives customers one or two-year fixed-rate contracts. These contracts switch to variable-rate plans after expiration unless customers renew their fixed-rate agreements. Customers can pick plans that match their energy usage patterns.
The company keeps things simple for customers. As one industry observer said, “People are already writing out a check every month to pay their electricity bill. With Ambit Energy the only thing that changes is the amount of the bill… it’s less!”. This easy transition helps Ambit stand out from other service providers.
Understanding Ambit Energy plans and pricing
You need to think about your electricity provider’s plan structure and pricing mechanisms to make an informed decision. Ambit Energy has several plan types that match different customer needs and usage patterns.
Fixed-rate vs variable-rate plans
We offered two main types of rate structures that determine your monthly bill calculation:
Fixed-rate plans give you predictability since your energy price stays the same throughout the agreement term. These plans need you to keep the service for the whole contract period (usually 12-36 months), or you’ll pay an Early Termination Fee. The fee is USD 199.00 for 12-month plans and USD 299.00 for 36-month plans. These plans protect you from market changes but might cost more upfront than variable options.
Variable-rate plans like Ambit’s Lone Star Flex give you more flexibility with month-to-month terms. Your rates can change monthly based on market conditions. These plans work great for temporary situations such as home renovations or empty rental properties. You can cancel anytime without penalty, but prices might swing up and down during peak seasons.
Here’s a quick guide to help you pick the right plan:
Plan Type Best For Risk Level Contract Length Fixed-Rate Long-term stability, budget certainty Low 12-36 months Variable-Rate Short-term needs, flexibility Higher Month-to-month Green energy and renewable options.
Ambit Energy provides eco-friendly options that might interest sustainability-minded customers:
Green-e Energy certified renewable electricity plans help reduce your environmental footprint. Standard Ambit plans include about 7% renewable energy. Specific green plans like the Free & Clear Nights 12 use 100% green energy from wind and solar power.
Ambit has teamed up with Sunrun for home solar panel installation and Arcadia for community solar subscriptions. Community solar lets you support local solar farms without installing panels. This option benefits renters or homes with unsuitable roofs while guaranteeing annual savings through bill credits.
How pricing is calculated based on usage
Several components make up your final Ambit Energy bill:
Basic energy cost uses a simple calculation: your energy use multiplied by your rate. This creates the foundation of your bill, but other factors may apply.
Tiered rate structure uses different energy rates for usage “buckets” or tiers. Higher usage moves into different tiers that determine your charges. The Secure Savings plan has a fixed rate for consumption over 1,000 kWh per billing period. The Lanar Basics plan gives you a 50% discount for usage between 500-1,000 kWh.
TDU Delivery Charges come from your local Transmission and Distribution Utility. These cover maintenance of electricity infrastructure like poles, wires, and meters. The Public Utility Commission of Texas approves these charges, which Ambit passes to you without markup. Your bill shows these as a separate section, and they may change monthly based on your electricity usage.
Your bill also includes taxes, state and local government surcharges, and other fees like minimum usage fees or base charges.
Reading your Electricity Facts Label (EFL) helps you understand your plan’s pricing structure and reveals potential hidden costs that might affect your total bill.
How to choose the best Ambit Energy plan for your needs
Picking the right electricity plan depends on what you need. Your monthly bills and overall experience can change by a lot based on which Ambit Energy plan matches your power usage patterns.
Factors to think about: usage, contract length, perks
You need to understand your personal usage patterns when picking an Ambit Energy plan. The best way is to track how much electricity you use over several months. Do you use more power in daytime or at night? Does your usage go up in certain seasons? These answers will help you find a plan with the best benefits.
Your monthly power usage is a vital part of choosing a plan. Texas homes typically use about 1,174 kWh each month. This means if you use:
- Under 1,000 kWh: Simple fixed-rate plans like Lone Star Classic might work best
- Over 1,000 kWh: Secure Savings plans could give you better rates at higher usage levels
Contract length shapes both your flexibility and price stability. Fixed-rate plans usually need 12-36 month commitments with fees if you leave early. Lone Star Flex offers month-to-month flexibility with no cancelation fees.
Ambit’s special perks can give you extra value. The Ambit Ultimate Perks plan lets you earn Reward Dollars that never expire. You can use these at over 500,000 retailers, restaurants, and entertainment spots. The Summer Break plan cuts your energy charges by half from June through September.
Tips for reading the Electricity Facts Label (EFL)
The EFL works like a “nutrition label” for energy plans. The Public Utility Commission of Texas requires this standard document to help you compare different options.
Here’s what matters most on an EFL:
- Pricing breakdown – Look at rates for different usage levels (500, 1,000, and 2,000 kWh) to find what works for your usage
- Contract details – Check the length, early exit fees, and if prices are fixed or variable
- Usage credits – Find bill credits that you get within specific usage ranges
- TDU charges – These transmission and distribution fees pass through without markup but affect your total cost
- Renewable content – See how much green energy comes with the plan if you care about environmental impact
Whatever plan you pick, Ambit’s T.L.C. Guarantee lets you switch to a different Ambit term plan once in your first 12 months without any fees. This makes your choice less stressful.
Ambit Energy pricing vs competitors: a side-by-side comparison
The energy marketplace shows how Ambit Energy compares to major competitors in pricing, perks, and overall value. These differences help you decide if Ambit meets your household’s needs.
Table: Ambit vs Gexa, TXU, Reliant (by region)
Texas electricity providers show clear pricing differences based on usage levels and regional service areas:
Provider Avg. Rate (¢/kWh)* Notable Features Complaint Ratio** Ambit Energy 14.9-16.5 Reward Dollars program; Winter/Summer Break discounts 3-4 stars Gexa Energy 10.9-12.0 Eco Saver Plus plan; generally lower rates 4-5 stars TXU Energy 17.5-20.0+ Premium pricing (~20% above market average); free nights options 3-4 stars Reliant 15.0-17.0 24/7 customer support; Nest product discounts 4 stars *Rates based on 1,000 kWh monthly usage **Star rating from Power to Choose; higher stars = lower complaint ratio.
What makes Ambit competitive or not
Ambit Energy’s multilevel marketing (MLM) business model creates both benefits and challenges in the marketplace. Their rates are nowhere near the lowest in Texas because they pay independent consultants throughout their sales hierarchy. Customers focused purely on price might find better deals with providers like Frontier Utilities or Gexa Energy.
Notwithstanding that, Ambit stands out with unique customer benefits. Their “Ambit Ultimate Perks” program gives customers $50 in Reward Dollars monthly, which they can use at over 500,000 retailers without expiration. The company’s seasonal plans like “Winter Break” cut energy supply charges by 50% from November through February. This saves customers money during high-usage months.
The company’s referral program lets customers earn Free Energy by bringing in 15 new enrollments. Traditional providers don’t offer these long-term savings opportunities.
Service quality matters just as much as rates. The practical aspects include customer service quality, account management tools, loyalty rewards, and user-friendly online portals. Ambit’s Customer Care team works 7 days a week, though customer opinions about service quality vary.
Managing your account, billing, and customer service
Managing your Ambit Energy account is simple with tools that make bill payments and account management easy. Your monthly energy needs become hassle-free once you sign up for service.
How to pay your Ambit Energy bill
Ambit Energy offers several ways to pay your bill that match your priorities. Texas customers can pick from these easy options:
- MyAmbit Account: Pay online using credit cards, debit cards, or bank accounts through the secure customer portal
- Quick Pay: Make one-time payments without logging in by using only your account number and ZIP code
- Phone Payments: Use the automated system available 24/7 at (877) 282-6248 or talk to an agent during business hours
- Mail: Send checks or money orders to Ambit Energy, P.O. Box 660462, Dallas, TX 75266-0462
- In-Person: Pay cash at partner locations including ACE Cash Express, MoneyGram, Fidelity Express, and Western Union
Setting up automatic payments through your checking, savings, or credit card account makes things even easier. Your payments will be deducted within 5 days of your monthly due date (1 day prior for credit cards) once you enroll.
Using the MyAmbit portal
MyAmbit portal works as your personal account management hub with features that go beyond just paying bills. Log in at my.ambitenergy.com to:
- Review account balance and payment history
- Store credit card information securely
- Set up automatic payments
- View travel rewards points
- Enroll in paperless billing
- Access past invoices and usage history
- Change or renew your energy plan
The mobile app is available for both Apple and Android devices. You can manage your energy account from anywhere since the app has the same features as the web portal.
Ambit Energy customer service number and support options
Ambit Energy’s customer service team helps you through multiple channels:
- Phone: Call (877) 282-6248 to reach Customer Care
- Hours: Monday through Sunday, 7:00 a.m. to 10:00 p.m. CT
- Fax: (877) 805-5606 for document submission
The customer service team helps with account questions, payment arrangements, and technical support. Ambit offers flexible payment options and bill-payment assistance programs if you struggle to pay on time. Just call customer service directly to find the best solution for your situation.
Conclusion
This piece has given you a detailed look at Ambit Energy’s history, business model, and services. You might find their prices aren’t the lowest out there, but Ambit’s unique benefits could give you great value based on your needs.
Ambit’s plan selection works for all kinds of users. You can pick fixed-rate plans for stability or variable options that offer more flexibility. Their specialty plans like Free & Clear Nights and seasonal discounts can help you save money based on how you use power.
Companies like Gexa Energy might have lower basic rates, but Ambit stands out with its customer loyalty programs, referral perks, and detailed account management tools. Your best choice really comes down to what matters most to you – whether that’s the lowest prices, steady rates, green energy, or reward programs.
Take time to read the Electricity Facts Label before you pick a plan. This document shows you the real costs beyond the advertised rates and helps prevent surprise charges. The MyAmbit portal makes it easy to manage your account once you sign up. You’ll get multiple payment options and customer support every day of the week.
The energy market changes faster every day, so it makes sense to check your options from time to time. Switching providers takes some work, but finding the right fit can save you money and get you better service over time. Ambit Energy might be perfect for you – it just depends on what you need and want from your energy provider.
FAQs
Q1. How do I choose the best Ambit Energy plan for my home? To select the best plan, consider your average monthly usage, preferred contract length, and desired perks. Compare fixed-rate and variable-rate options, and carefully review the Electricity Facts Label (EFL) for each plan to understand pricing structures and additional fees.
Q2. Why might my Ambit Energy bill be higher than expected? Your bill amount is primarily determined by your energy usage and local rates. Higher consumption naturally leads to higher bills. To reduce costs, consider energy-saving practices and explore Ambit’s plans with usage-based discounts or free energy periods.
Q3. Are there fees for canceling an Ambit Energy contract early? Yes, Ambit Energy typically charges an early termination fee for fixed-rate plans. The fee is usually $199 for 12-month contracts and $299 for 36-month contracts. Always check your plan’s specific terms in the Electricity Facts Label (EFL) for exact fee amounts.
Q4. What is Ambit Energy’s Budget Relief Plan? The Budget Relief Plan offers customers $50 back on their energy bill when they use 1,000 kWh or more in a billing period. This plan provides a flat rate throughout the year and is designed to offer relief during high-usage months. Q5. How does Ambit Energy compare to other providers in terms of pricing? Ambit Energy’s rates typically fall in the mid-range compared to competitors. While not always the cheapest option, Ambit offers unique benefits like reward programs and seasonal discounts. Their rates generally range from 14.9 to 16.5 cents per kWh for 1,000 kWh usage, compared to competitors like Gexa Energy (10.9-12.0 cents) and TXU Energy (17.5-20.0+ cents).
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