Electricity Facts Label: A Masters Class
Dive into the Electricity Facts Label (EFL). We’ll cover what they are, how to read them, and how to use them to your advantage.
The Electricity Facts Label (EFL) is one of the most important tools for Texans shopping for a new electricity plan. The more complex the plan, the more essential it becomes to determine if it’s the right fit for you. While our detailed plan cards highlight key data points to help you evaluate a plan, the EFL provides the in-depth details needed to make a confident decision. If you’re considering a more complex plan, the EFL is where you’ll uncover the specifics to decide whether it aligns with your needs.
What We'll Cover
Electricity Facts Label, What is It?
The Electricity Facts Label (EFL) is a vital resource for all electricity customers in Texas, providing clear and straightforward details about an electricity plan. Every legitimate electricity plan in Texas comes with an EFL, making it an essential tool for evaluating whether a plan meets your needs.
Introduced in 1999 after the deregulation of Texas’s electricity market, the EFL was created to empower consumers in a competitive marketplace. In a deregulated environment, Retail Electric Providers (REPs) offer a wide variety of plans with different rates, fees, and terms. The EFL serves as a standardized form, enabling customers to compare plans on an equal footing and make informed decisions.
What You Need to Know About the EFL
The Electricity Facts Label (EFL) is where all the essential details about an electricity plan are revealed—it’s the key to truly understanding what you’re signing up for. While some plans are straightforward, others can be filled with complexities, such as usage thresholds, bill credits, or time-of-use conditions. The EFL is where providers are legally required to disclose all the fine print, so you can make an informed decision.
For simpler plans, the EFL can confirm what you already know. However, for more complex plans, it becomes a critical tool to uncover important details like:
- Usage Thresholds: Are there bill credits or penalties based on how much electricity you use
- Hidden Fees: Are there base charges, minimum usage fees, or other costs you didn’t expect?
- Conditional Rates: Is the advertised price dependent on a specific usage level or time of day?
The EFL allows you to compare electricity plans “apples to apples” by providing standardized information across providers. For any plan that isn’t entirely straightforward, reviewing the EFL is the only way to ensure there are no surprises on your bill later. Remember, knowledge is power—especially when it comes to your electricity plan.
How Can the EFL Help You?
The Electricity Facts Label (EFL) is your safeguard against surprises, bad electricity plans, and overpaying for electricity. By taking the time to review the EFL, you can ensure that the plan you choose aligns with your needs and avoids hidden fees or unfavorable conditions that could lead to unexpectedly high bills.
At Texas Electricity Finder, we simplify the process of shopping for electricity plans, making it easy and intuitive for you to compare options. We highlight key details for every plan, helping you make informed decisions. However, some plans—especially those with bill credits, time-of-use pricing, or other conditions—can have critical details buried in fine print that aren’t immediately obvious.
What Information is in an EFL?
The EFL includes some information about the provider and all information about the electricity plan. In addition, it provides you with:
- Clarity on Pricing: Understand exactly how the advertised price is calculated, including any base charges, usage thresholds, or fees.
- Transparency on Conditions: Spot special requirements, like needing to stay within a narrow usage range to receive a discount or avoiding penalties.
- An Honest Look at Rates: See the actual energy charge and delivery fees, broken down for each usage level (500, 1,000, and 2,000 kWh).
- A Way to Compare Plans: Use the standardized format to evaluate plans side-by-side, ensuring no key detail is overlooked.
While our Electricity Plan Pricing Guide provides tips on spotting and understanding complex plans, the EFL is your ultimate resource for digging deeper. It’s the tool that gives you the confidence to choose the right electricity plan and avoid being caught off guard. For plans with conditions or modifiers, viewing the EFL can make all the difference between saving money and overpaying.
Pro Tip: Always check the EFL for any plan you’re seriously considering. It’s your best defense against hidden surprises and your key to finding a plan that works for you.
Format and Saving
The Electricity Facts Label (EFL) is provided in PDF format, making it easy to view, download, and save before selecting an electricity plan. Providers are required to supply an EFL for every plan, and you’ll also receive one when you sign up for electricity.
We strongly recommend downloading and saving a copy of the EFL directly from our plan card before completing your enrollment. When we receive provider plan data to display on our website, the EFL for each plan is included to give you full transparency.
Why Save the EFL?
Saving a copy of the EFL ensures you have a record of the exact plan you selected. This can be especially useful if questions arise about your electricity plan’s pricing, terms, or conditions during your contract term. Having the EFL on hand allows you to easily verify that your bill matches the details outlined in the plan you chose.
Pro Tip: Save your EFL in a secure location, whether digitally or as a printed copy. It’s your best reference for understanding your plan and resolving any discrepancies with your provider.
Where can you find the EFL?
In the “Explore Plan Details” section of our plan cards, we provide an easy and normalized way to view the important information from the Electricity Facts Label, which we cover in detail in our Electricity Plan Pricing Guide.
To access the EFL on Texas Electricity Finder, you can locate the Electricity Facts Label link in the details section of our plan card. The link is at the bottom of the “Advertised Rates” section of the details window.
Here’s a view of our plan card displaying the details section of the card. You can see the “Electricity Facts Label” link in the bottom left corner.
Even though we provide EFL details in an easily accessible way, we encourage our customers to view the provider’s Electricity Facts Label before signing up for an electricity plan.
The Electricity Facts Label link is at the bottom of the Advertised Rates box in the details section of our plan card.
Simply click the “Electricity Facts Label” link to view and download the PDF file.
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The Five Section of the EFL
Every EFL includes these five sections:
- Header
- Electricity Pricing
- Other Key Terms and Questions
- Disclosure Chart
- Provider Info
Although the sections in the EFL are the same for all plans, how the provider displays and formats the information for their plans can vary.
Here are some examples of how EFLs can vary from provider to provider:
Rhythm Energy EFL
Frontier Utilities EFL
Chariot Energy EFL
We don’t feel one EFL format is better than another. Once you know five sections, the style of the EFL has minimal impact. The information in the EFL has the most impact, and knowing where the information is located is the key to being a savvy electricity plan shopper.
EFL Layout
Here, we break down each section of the EFL and highlight the information included in each section.
Header
Data points included in the header of the EFL:
- Provider Name & Logo
- Plan Name – Provider’s name of the Plan
- Utility Supplier – TDU for the plan
- Date – When the EFL was created or last updated.
Electricity Pricing
- Advertised Pricing – Average price at stated kWh usage, taking into account discounts and credits.
- Usage Charges – Amount charged per kWh of electricity used.
- Energy Charge – Rate provider charges per kWh
- TDU Delivery Charge – or TDU Usage Rate. The rate the TDU charges per kWh.
- Fixed Fees – Monthly charges regardless of usage.
- Base Charge – Provider’s monthly fee
- TDU Delivery Charge – Utility Supplier’s monthly fee
- Description/Special Conditions – Plan’s description and important details about the plan.
Other Key Terms and Questions
- Terms and Conditions – Reference for customers to review the provider’s TOS (Terms of Service) document.
Disclosure Chart
- Plan Type – Fixed (price doesn’t change) or Variable (price changes each month)
- Term – Length of contract in months.
- Early Termination Fee – Cost of canceling the contract early.
- Flat Fee – Cost to cancel the contract regardless of how much time remains.
- Remaining Months Fee – A fee for each month remaining in the contract term.
- Price Change Disclosure – Defines if and how the price can change.
- Note: The only fee that can change during a Fixed-Rate contract is the TDU Charge.
- Other Fees – Fees charged for non-standard actions.
Provider Info
- EFL Version Number
- Provider’s PUCT (Public Utility Commission of Texas) Certificate Number, which can be looked up here.
- Contact Info – Some providers include their address, hours, phone, etc…
BKV Energy EFL
Additional Electricity Facts Label Insights
Here, we’ll highlight key details and provide additional insights into some of the most important sections of the Electricity Facts Label (EFL). These tips will help you identify critical information and better understand the terms, rates, and conditions outlined in your electricity plan.
Header
In the header section of the EFL, it’s essential to verify that the plan name matches the one you selected and that the listed TDU aligns with the correct utility provider for your zip code. While errors in this section are uncommon, cached data in your browser can sometimes display outdated or incorrect information. Double-checking ensures that you’re reviewing the correct EFL for the plan and area you’re considering.
Electricity Pricing
This is the most important section in the EFL. It contains all pricing details and essential information about the plan.
Average Price Pattern (500, 1000, and 2000 kWh)
If one of the prices for a usage tier is significantly less than the other two, be sure to read the description carefully to understand why that advertised price is lower at that usage level. The plan may have conditions or modifiers required to receive that lower price.
Energy Charge
This is the rate the provider charges per kWh you use before any discounts or credits. For simple/straightforward plans, you want this to be as low as possible.
Time-of-Use Plans – For these plans, the energy charge varies depending on the time of day. The times and charges for these plans will be defined in the Description/Special Condition section.
- Peak/Daytime Energy Charge – This is the higher rate charged when electricity demand is high.
- Off-Peak/Nights Energy Charge – The rate charged when electricity demand is low.
Pro Tip: For TOU plans, the provider calculates the Advertised Price based on an assumed percentage of your electricity usage occurring during off-peak hours at the discounted rate. Most providers assume 35-40% of your usage will occur during off-peak times. However, our data shows that for most customers, this percentage is closer to 25-30%.
Be sure to check the percentage assumption listed in the Description/Special Conditions section of the EFL. Confirm whether it aligns with your usage patterns to ensure the plan is truly a good fit for your energy needs.
Base Charge
The Base Charge is a fixed monthly fee that the provider charges, regardless of your energy usage. For most plans, this charge typically ranges between $0 and $10.
Pro Tip: A $10 base charge translates to approximately $0.01 per kWh at 1,000 kWh of usage. When comparing two plans, be sure to factor in the Base Charge. Even if one plan’s advertised average price appears lower, a higher Base Charge could make it more expensive overall, depending on your usage.
Description/Special Conditions
This section of the EFL is crucial for understanding more complex plans, especially those with special conditions or modifiers. It provides detailed explanations about how the plan works, including specific terms and conditions that may affect your bill.
At Texas Electricity Finder, our plan cards include a high-level summary of any conditions or modifiers for each plan. However, the Description/Special Conditions section of the EFL goes into greater depth, such as the formulas the provider uses to calculate their average prices. Reviewing these details helps you determine if the provider’s assumptions and calculations align with your unique usage patterns.
TDU Charges
While TDU charges are included here, they are consistent across all plans within the same utility area and are beyond your control. Still, it’s essential to be aware of these charges to avoid surprises when they appear on your monthly bill.
Pro Tip: For additional guidance, check out our Electricity Plan Pricing Guide to better understand plan structures and simplify your search for the right electricity plan.
Disclosure Chart
Our detailed plan cards provide most of the key information from this section, such as whether the plan is Fixed or Variable Rate, the Contract Term, Early Termination Fees, and more. However, there’s one particular line item in this section you should pay close attention to:
What other fees may I be charged?
This line outlines additional penalties or fees the provider may impose. Not all providers charge the same fees, and these can vary significantly from one plan to another. Understanding these potential charges is crucial to avoid unexpected costs down the line.
Pro Tip: Before committing to a plan, review this section carefully to ensure there are no hidden fees that could impact your overall cost. Transparency is key to finding the plan that truly works for you.
In Closing
We do everything possible to make shopping for electricity plans in Texas easy and to provide you with the information needed to make an informed decision when selecting your next electricity plan. Take advantage of our simple yet detailed plan cards. They provide everything you need to be a savvy shopper.
Even though we provide great detail in our plan cards, the EFL is a very useful tool, and knowing how to take advantage of it is the key to avoiding costly plans: the more complex the plan, the more important the Electricity Facts Label. Special conditions, modifier formulas, and hidden fees can’t hide from the Electricity Fact Label!
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