Skip to content
Shop Texas Electricity Logo
Mobile Navigation Bar
Managing Commercial Electricity Contracts to Drive Business Success

Managing Commercial Electricity Contracts to Drive Business Success

Commercial electricity contracts are agreements between businesses and electricity providers that outline the terms and conditions for the supply of...
Read More
Ultimate Guide to Mastering Texas Electricity Plan Comparisons

Ultimate Guide to Mastering Texas Electricity Plan Comparisons

Electricity deregulation in Texas began in 2002, giving residents the power to choose their electricity providers. This monumental shift from...
Read More
A Complete Guide to Power to Choose for Waco Residents

A Complete Guide to Power to Choose for Waco Residents

Energy deregulation in Texas has transformed the way residents and businesses purchase electricity. Prior to deregulation, the energy market was...
Read More

Electricity Shopping and the Electricity Facts Label

August 28, 2014
by dmirza

Electricity is an essential part of modern life, powering our homes, businesses, and industries. With the increasing focus on renewable energy and sustainable practices, many consumers are becoming more conscious of their electricity consumption and are actively seeking ways to reduce their carbon footprint. As a result, electricity shopping has gained popularity, allowing consumers to choose their electricity provider and make informed decisions based on their preferences. One crucial tool in this process is the Electricity Facts Label (EFL), which provides valuable information about the electricity plan and helps consumers compare different offers. We will explore the concept of electricity shopping and delve into the importance of the Electricity Facts Label.

Understanding Electricity Shopping

Electricity shopping refers to the practice of comparing and choosing electricity plans from different providers. In deregulated energy markets, consumers have the freedom to select their electricity supplier rather than being limited to a single utility company. This competition has led to a variety of options for consumers, including different pricing structures, renewable energy options, and added benefits.

By shopping for electricity, consumers can potentially save money by finding lower rates or taking advantage of promotional offers. They can also support renewable energy initiatives by selecting plans that utilize clean energy sources. Moreover, electricity shopping empowers consumers to make choices aligned with their values and preferences.

Electricity Facts Label (EFL)

The Electricity Facts Label is a standardized document that provides essential information about an electricity plan. It serves as a tool to compare different plans side by side, ensuring that consumers have access to transparent and consistent information. The EFL is typically available on the electricity provider’s website or can be obtained upon request.

  1. Plan Details: The EFL starts by presenting the plan details, including the name of the electricity plan, the provider’s name, and the contract term. It is crucial to understand the terms and conditions of the plan before making a decision.
  2. Pricing and Billing: The EFL provides information on the pricing structure of the plan. This includes the rate per kilowatt-hour (kWh) and any additional charges, such as a base fee or a variable usage charge. Consumers can compare these prices across different plans to find the most cost-effective option.
  3. Renewable Energy: Many consumers are interested in supporting renewable energy sources. The EFL includes details about the percentage of renewable energy in the plan, such as wind or solar power. It also specifies whether the plan has been certified as renewable by an independent organization.
  4. Contract Terms: The EFL outlines the contract terms, including the length of the agreement, any early termination fees, and the process for renewing or canceling the contract. Consumers should pay attention to these details to avoid any unexpected fees or complications.
  5. Customer Satisfaction: The EFL may include information about the provider’s customer satisfaction ratings or any awards they have received. This gives consumers an idea of the provider’s reputation and the quality of their service.
  6. Environmental Impact: As environmental concerns become more prevalent, some consumers prioritize reducing their carbon footprint. The EFL may include information about the plan’s environmental impact, such as the pounds of carbon dioxide (CO2) emitted per kilowatt-hour.

Benefits of the Electricity Facts Label

The Electricity Facts Label offers several benefits to consumers, including:

  1. Transparency: The EFL promotes transparency by providing standardized and easy-to-understand information. It ensures that consumers have access to accurate details about their electricity plans, helping them avoid hidden costs or misleading claims.
  2. Informed Decision-Making: With the EFL, consumers can make informed decisions based on their preferences, such as cost, environmental impact, or contract terms. By having a clear understanding of the plan’s features, consumers can select the option that best suits their needs.
  3. Comparison Shopping: The standardized format of the EFL enables consumers to compare different electricity plans effectively. By evaluating key information side by side, consumers can identify the most favorable options and potentially save money.
  4. Empowerment: The EFL empowers consumers to become active participants in the electricity market. It shifts the balance of power towards consumers, allowing them to exercise choice and influence the energy landscape by supporting renewable energy sources.

Making Informed Decisions

When shopping for electricity, it is essential to review multiple Electricity Facts Labels and compare the details. Here are a few tips to make informed decisions:

  1. Identify Your Priorities: Determine what factors are most important to you. Are you looking for the lowest price, renewable energy options, or excellent customer service? Understanding your priorities will help you narrow down the options.
  2. Calculate Total Costs: Consider not only the rate per kilowatt-hour but also any additional fees or charges. Calculate the total cost over the contract term to get a comprehensive picture of the plan’s affordability.
  3. Evaluate Renewable Energy Options: If supporting clean energy is a priority, review the EFLs to identify plans with higher percentages of renewable energy. Look for plans certified by reputable organizations to ensure the authenticity of their renewable claims.
  4. Read Customer Reviews: Apart from the information provided in the EFL, reading customer reviews and experiences can provide valuable insights into the provider’s reliability and customer service.
  5. Seek Assistance if Needed: If the process of electricity shopping seems overwhelming, consider seeking assistance from energy consultants or consumer advocacy organizations. They can guide you through the process and provide expert advice.


Electricity shopping has become increasingly popular as consumers seek to make informed choices about their energy consumption. The Electricity Facts Label plays a crucial role in this process by providing standardized and essential information about electricity plans. By comparing prices, contract terms, renewable energy content, and additional fees disclosed in the EFL, consumers can select plans that align with their preferences and values. With careful consideration and research, consumers can make well-informed decisions that suit their budgetary needs, environmental concerns, and overall satisfaction.

No comments yet

Leave a Reply

Note: You can use basic XHTML in your comments. Your email address will never be published.

Subscribe to this comment feed via RSS

  • Follow

    Get every new post delivered to your Inbox

    Join other followers: