The energy charge is the price you pay for the electricity you use. Be aware that even if you pick a plan that is a bundled energy charge, the REP may still pass through any changes in delivery fees. Other REPs choose to show energy and delivery separately on the bill. Some REPs combine the energy charge and TDSP fees and call it a ‘Bundled Energy Charge’. Delivery Charges from the Transmission and Distribution Service Provider (“TDSP”).There are 3 primary fees that make up this calculation: So if this isn’t a unit price for electricity, what is it? It’s an average rate for all delivery and energy charges based on the kWh used in a billing cycle. For more information, see Why Does Texas Have Three Electricity Rates? How is the Average Price per kWh Calculated?Įvery EFL displays the average price per kilowatt hour for 500 kWh, 1000 kWh, and 2000 kWh usage levels. That means, this is what you’ll pay for electricity plus delivery if you use exactly that much power. The prices listed for 500 kWh, 1000 kWh, and 2000 kWh are not ranges of pricing and they are not your energy rate. These are the average electricity prices per kWh at those usage levels. That will show prices for 500 kWh, 1000 kWh, and 2000 kWh usage levels. The Pricing Disclosure section is the section that most people focus on. Contact Information for the Retail Energy Provider.Early Termination Fee – fee that you will pay if you cancel your contract before the end of your contract term.Type of Plan – fixed, variable or index.Contract Length – number of months in your contract agreement.Sometimes these are included with the energy rate. Delivery Charges – charges from your local utility company.Base Charge – whether there’s a base monthly charge or minimum usage fee.Average Rate – price per kWh based on usage levels.Energy Rate – price per kWh for electricity.The Electricity Facts Label includes these items: What’s on the EFL?ĮFLs are clogged with information, from the rate you’ll pay for electricity to disclosures about the plan. Too many people don’t read the EFL - and they get a big surprise when the bill comes in, because they bought a teaser rate. And when your energy charge is exactly what you expected? Then you’ll be glad you read the EFL. When you go to read your electricity bill, the charges should match what you agreed to on the EFL. Their goal is to protect residential and small commercial customers from unexpected surprises on their electric bills. Although it might seem like a lot of paperwork, these are important documents. The PUCT standardizes the format and contents for the EFL. The EFL, along with the Terms of Service and Your Rights as a Customer document, make up your contract for electricity. What is an EFL?ĮFLs are standard disclosures required by the Public Utility Commission of Texas (PUCT) for every electricity plan offered by a Retail Electricity Provider (REP) in Texas. And, the added tools on the site can help you make sense of the math. When you understand an Electricity Facts Label you’ll know exactly what to expect from your electricity plan. Confusing rates, lengthy legal documents, and perplexing fees can lead to your electricity bill being higher than you expected. Hunting for the right electricity plan can be an intimidating proposition. Knowing how to read an Electricity Facts Label (EFL) is the key to finding the right electricity plan for your home or business.
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