Guest Blogger: Matt Oberle from TexasElectricityRatings.com (Part 3) – Understanding Your Electricity Facts Label (EFL)
By Julianne, June 9, 2011, FAQs, News
The biggest and most common problems that happen in the deregulated Texas electricity market come from a lack of understanding as to exactly how things work. People have always heard the phrase “be sure to read the fine print,” and that applies to electricity in Texas just as much as anywhere else. In this instance, the fine print in question is almost always located in the Electricity Facts Label (EFL). Every single plan from every single electricity company is required to have an unique EFL associated with it that breaks down the specific facts of the plan. What are the Rates? Is there a contract? What is the fee for breaking a contract? How much of the plan uses renewable energy? All of this and more is located in the EFL, and typically customers can find the EFL for every plan on the website of the electricity provider. Everyone should read this before they order an electricity plan. If your plan has a promotional rate, this is the page that spells out how that works and when that rate expires. Sometimes an electricity provider might mention in their EFL to visit their Terms of Service for specifics, creating another step for the customer to have to find answers, but oftentimes all the important information is on the EFL itself. I suggest everyone read it before selecting a new electricity plan.
Specifically, there are two sections on every EFL. The first one is “Key Terms and Questions” which will explain a bit about your plan, how it is billed and things of that nature. The other section, which houses many of the things already mentioned, is called the “Disclose Chart.” It covers things like contract term, whether or not your price can change during your contract period, and most importantly, what other fees might be associated with your electricity bill. I’m always seeing customers feeling like they’re being cheated by an REP because they look closely at their bill and see things like Transmission Fees, Taxes, or Hurricane Ike Fees. Many of these fees aren’t money that even goes to the REP, it’s money that is being paid directly to the state or local TDSP. But customers see this and just think they’re getting nickel and dimed for more money. They’re not, EVERY electricity company has to charge these fees, and they’re static no matter who turns on your lights. The REP doesn’t see a dime of this, just the state and the TDSPs. But, understandably, people see these fees and get frustrated. Well, look at the EFL before you order, so you understand what goes into the bill you’re paying, and why you pay it. At the very least, you won’t be shocked when you open your first bill. Even if the EFL doesn’t include the charges specifically, it will at least say “Does not include” in the Disclosure Chart so a customer will understand that other charges might be included that are actually separate from your true electric bill. Understanding your EFL, and in turn how the electricity market works, is a huge step in feeling more comfortable with deregulated electricity and being able to take advantage of the free market to find the best deals for yourself.
About Matt and TexasElectricityRatings.com:
Texas Electricity Ratings was created specifically to act as a place where customers could come to share and read about individual personal experiences with the different Retail Electricity Providers operating in Texas, as well as compare prices and plans these companies have made available. Until Texas Electricity Ratings, there wasn’t a single site where people could come to review all of these things, as well as take an active hand in the electricity market themselves.
The views and opinions expressed in this blog/article are those of the guest writer, not necessary the opinion of Bounce Energy. For more information on being a guest writer for Bounce Energy, please email us at web@bounceenergy.com.
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