What is a Plan EFL and how does it affect my Texas electricity?

by | Jun 7, 2018 | Industry News

A Texas electricity Energy Facts Label (EFL) contains a plan’s price, features, and rules. Reading one while shopping can help save time and money.

Reading a plan’s Energy Fact Label (EFL) tells you everything you need to know about it — and more!

What Is an EFL in Texas?

No one wants to read the fine print. But when you’re comparing Dallas electric rates, you need to know the full picture. This helps you save big when using the power to choose to find the cheapest electricity plan for your Dallas, Texas home.

The Energy Facts Label (EFL) is a document that provides a quick overview of a plan to help you better understand exactly what it offers. Reading over a plan’s EFL helps you pick the best electricity provider for your energy needs. And when combined with the plan’s Terms of Service, these documents illustrate what you can expect from an electricity provider’s charges for your Texas electricity usage.

What Kind of Details Are on the EFL?

At the top of the EFL is the name of the plan, whether the plan is a variable of fixed rate, the term length, the name of the service provider, and the date showing how current those rates are. Below that is information on the plan’s rates. The EFL provides three separate rates that illustrate average Texas electricity usage rates at 500, 1000, and 2000 kWh. This represents small, average, and large households and helps you predict what your monthly bill for that plan will be.

The EFL also breaks down this average rate, showing how additional fees and bill credits impact the overall average. Some EFLs show estimated energy charges that combine both the base rates and the TDSP services and fees. Others break down the rates into their two separate parts, the cost of the energy and its distribution fee. If a plan has specific perks, like free nights and weekends, it shows how the calculation behind that affects the bill.

Why Is It Important to Read the EFL?

The EFL is a powerful tool to help you understand how to switch Texas electricity companies. If you don’t read it, you could find yourself trapped in an energy plan that’s not right for you, costing you a lot of money. A classic example is the introductory or teaser rate plan designed to tempt you with a fantastic low rate — but when you read the plan’s EFL, you’ll likely discover that this beautiful low rate is only good for the first month. After the first month, your rate would then likely change over to the regular variable rate and you would probably face much higher bills.

While many plans have low rates in the ONCOR area, some rates may not be what you’re looking for once you understand all the details. Whether it’s a high cancellation fee or understanding the time when “free nights” begin, your plan’s EFL is full of vital details aimed at helping you save.

There are other reasons to read the EFL aside from avoiding high energy rates. It shows the amount of energy your provider purchases from renewable generation and compares it to the state average. It also shows the company’s phone number, physical address, and PUC license number located at the bottom of the document for reference.

Check Out the EFL Before You Switch Providers

The deregulated Texas energy market has been around for over a decade, but picking the best electricity provider for your needs can still be confusing. When you’re ready to shop for a new Dallas electric supplier make sure you visit https://www.texaselectricityratings.com for help before making the switch.

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