Electricity Facts Label: A Masters Class
- Dive into the Electricity Facts Label. Where we cover what they are, how to read them, and how to use them to your advantage.
Table of Contents
What is an Electricity Facts Label?
- The Electricity Facts Label (EFL) is an essential document for all electricity customers in Texas. It provides clear, straightforward information about the plan. An EFL is provided with every legitimate electricity plan in Texas. EFLs are designed to help you determine if the electricity plan works for you.
- The Electricity Facts Label was introduced in 1999 following the deregulation of the Texas electricity market. In a deregulated market, many Retail Electric Providers (REPs) offer various plans with different rates, fees, and terms. The EFL is a standardized form that helps customers compare plans apples to apples.
What you need to know about the EFL
- It’s where the secrets are hidden. Some plans are simple, but some are not. Providers are required to put all plan details in the EFL. The more complicated the plan, the more important it is to know and understand the Electricity Facts Label.
How can the EFL help you?
- It can help you avoid surprises, bad electricity plans, and overpaying for electricity.
- At Texas Electricity Finder, we streamline shopping for electricity plans to make it easy and intuitive. We show you the important details so you can be an informed shopper, but some plans have details buried in fine print. Our True Price and Electricity Plan Pricing Guide shows you how to identify these complex plans, and viewing those plans’ EFLs will help you avoid unexpectedly high electricity bills.
What information is in an EFL?
- The EFL includes some information about the provider and all information about the electricity plan.
- Every EFL can be broken down into five sections.
- • Header
- • Electricity Pricing
- • Other Key Terms and Questions
- • Disclosure Chart
- • Provider Info
- Those section names may mean little now, but we’ll explain each one below and let you know which ones can help you the most.
Format and Saving
- The Electricity Facts Label comes in PDF format and can be viewed and downloaded before choosing an electricity plan. Providers also include one when you sign up for electricity.
- We recommend you download and save a copy of the EFL from our plan card before signing up for a plan. When we get the provider’s plan data to promote on our website, they include the EFL for each plan. Saving a copy of the EFL from our site is a good idea to ensure you get the plan you selected. This will be helpful in case questions arise during your electricity plan term about pricing.
Where can you find the EFL?
- To access the EFL on Texas Electricity Finder, you can locate the Electricity Facts Label link in the details section of our plan card. It’s at the bottom of the “Advertised Rates” section of the details window.
- 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.
- Here’s a view of our plan card displaying the details section of the card.
- 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. Should match the TDU for your Zip.
- • 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
What to know about each section
Header
- The main thing here is to confirm that the plan name matches the plan you selected and that the TDU is correct for your zip code. These are rarely wrong, but things do get cached, so it’s good practice to double-check and ensure you’re viewing the correct EFL.
Electricity Pricing
- This is the most important section in the EFL. It contains all pricing details and essential information about the plan.
- We show all the EFL prices and charges in our plan cards, but when you’re looking at this section in the EFL, here’s what you want to look for:
- 1. Average Price Pattern (500, 1000, and 2000 kWh) – If one is significantly less than the other two, read the description carefully to understand why the average price is lower at that usage level. The plan may have conditions or modifiers required to receive the lower price.
- 2. Energy Charge – 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 – These plans will have different rates for different times of the day. The times 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.
- Time of Use Plans – These plans will have different rates for different times of the day. The times for these plans will be defined in the Description/Special Condition section.
- 3. Base Charge – The fixed monthly fee the provider charges. Usually between $0 and $10.
- Note: A $10 base charge equals roughly $0.01 at 1000 kWh. If comparing two plans, if one’s average price is less than the other, be sure to check the monthly base charge. It could impact the average price.
- 4. Description/Special Conditions – This section of the EFL is essential for the more complex plans, plans with special conditions and modifiers. This is where the modifiers and conditions are defined in detail. The plan descriptions we show on our plan cards at Texas Electricity Finder will include a high-level overview of the condition or modifier for the plan, but this section of the EFL includes in-depth details like the formula the provider used to determine their average prices. These details will help you better understand if the provider’s assumptions and calculations match your situation.
- TDU Charges are less important here because they are the same for all customers and all plans that use the same TDU. As customers, we don’t have any control over these, but it is important you know what the TDU is charging so you’re not surprised when you see their charges on your monthly bill.
- For more details, we recommend reading our Electricity Plan Pricing Guide and how our True Price can help you shop for electricity plans.
Disclosure Chart
- Our detailed plan cards show you the bulk of this information, such as the Fixed or Variable Rate, Contract Term, Early Termination Fees, etc… But there is one line item in this section you’ll want to pay close attention to.
- What other fees may I be charged? – This is where the provider discloses other penalties and fees they charge. Not all providers charge the same fees. This is important information you should know before purchasing any electricity plan.
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!
- Explore some of our other helpful resources to help you become a savvy shopper
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