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Electricity Shopping and the Electricity Facts Label

August 28, 2014
by dmirza
Electricity-Providers-in-Texas

So it’s time to start switching electricity providers and when shopping for the right plan you want to make sure you are getting the best deal. There are important documents like the Electricity Facts label, or EFL that you should pay attention to. This document is a requirement for every Retail Electricity Provider in Texas to provide important information pertaining to the plan you are about to sign up with.

The Electricity Facts Label shows the following:

  • The length of the plan term, in months (or years if applicable) Example: 12 months

o   If it is a Variable plan, it is a month to month plan which does not have a contract

Fixed rate plans are plans that do not change each month

  • The Energy Charge which is the charge based on energy consumed
  • The Local Utility charges , these come from the local utility company since they manage and maintain the transmission poles and lines.
  • Early Termination Fee – to avoid Early Termination Fees you can opt to enroll on a month to month plan
  • Average Price if you use 500 kWh, 1000 kWh, 2000 kWh
  • Renewable energy percentage if any
  • Any monthly charges, if any
  • Any late payment charges, if any

 

You will always see a TDU Charge on your bill. This is the Transmission Distribution Utility, which is the local utility company that maintains the poles and wires to distribute electricity to your home. Every TDU in Texas has a TDU distribution charge, because they still own the poles and wires. Basically, no matter which electricity provider you choose; you the TDU will still charge local distribution fees.

The five TDU’s in Texas are: CenterPoint , Oncor, AEP Texas, Texas-Mexico Power, and Nueuces Electric Cooperative.

An Electricity Facts Label (EFL) is the key to smart electricity shopping. When electricity shopping, the EFLs are always available and are mostly likely on the plan page. The customer will always receive a copy of their EFL after signing up, or they can call the electricity providers customer service and request a copy. Reading an EFL makes the customer aware of all charges on their electric bill.

Smarter electricity shopping begins with knowing exactly what plan you are enrolling with. Our website lists over a dozen retail electric providers to choose from, we even list the Electricity Facts Label of each company. Compare and shop electricity plans today.

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