How to Read an Electricity Facts Label

How to Read an Electricity Facts Label


Jun 13, 2024

Read below to learn more about your electricity facts label, AKA EFL.

Understanding Texas Electricity Facts Label (EFL)


In the realm of energy consumption, deciphering an Electricity Facts Label (EFL) is paramount for informed decision-making. EFL serves as a comprehensive breakdown of crucial details regarding your electricity plan. Let's delve into the intricacies of understanding a Texas Electricity Facts Label.

Unveiling the Components of EFL

An Electricity Facts Label typically encompasses various sections, each holding significant importance. Here's a breakdown:

1. Electricity Provider Information

This section discloses essential details about the electricity provider, including their contact information and customer service availability. It's crucial for consumers to know who they're dealing with and how to reach out if needed.

2. Pricing Details

The pricing segment elucidates the intricate details of your electricity rates, including energy charges, base charges, and additional fees. Understanding these charges empowers consumers to make cost-effective choices aligned with their energy needs.

3. Contract Terms

This portion outlines the terms and conditions of your electricity plan, including contract length, early termination fees, and renewal options. Clear comprehension of these terms aids in avoiding unforeseen penalties or restrictions.

4. Renewable Energy Percentage

In the wake of environmental consciousness, many consumers prioritize renewable energy sources. The EFL divulges the percentage of renewable energy in your plan, allowing eco-conscious individuals to make environmentally friendly choices.

Deciphering Key Terms and Figures

Understanding the terminology and figures presented in the EFL is imperative for making informed decisions. Here are some key terms to decipher:

1. Energy Charges

Energy charges refer to the cost of electricity consumption per kilowatt-hour (kWh). It's crucial to grasp these charges as they directly impact your monthly electricity bill.

2. Base Charges

Base charges are fixed fees incurred regardless of energy consumption. They contribute to the overall cost of your electricity plan and should be considered when comparing different options.

3. TDU Delivery Charges

TDU (Transmission and Distribution Utility) delivery charges encompass the costs associated with delivering electricity from power plants to consumers' homes or businesses. Understanding these charges provides insight into the total cost of electricity consumption.

4. Early Termination Fees

Early termination fees are penalties imposed for terminating your electricity contract before its designated end date. Consumers should be aware of these fees to avoid unexpected financial repercussions.


In conclusion, mastering the art of deciphering a Texas Electricity Facts Label empowers consumers to make informed decisions regarding their energy consumption. By understanding the intricacies of pricing details, contract terms, and renewable energy percentages, individuals can optimize their electricity plans to suit their needs and preferences. Armed with this knowledge, consumers can navigate the energy landscape with confidence and clarity.

About the author

Benji Thomas

Benji Thomas

Chief Executive Officer

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