Home Electricity Service Charges Explained

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Home Electricity Charges Explained

How many of us have been looking at our electricity bill and know what we are paying for? Where do all these charges are coming from? Who is the TDSP, the utility, the energy charges, recovery charges, etc.? Yes indeed, not easy to understand all the details. Home Electricity Charges Explained.

Home Electricity Charges Explained

Understand your energy charges

Electricity Express is here to help, and we would like to explain your home electricity charges. However, let me tell you that all those charges that we do not understand. Notably, are there and will never go away.

As you may know, Electricity Express works with many different energy providers, with postpaid electricity (contract plans) and with prepaid electricity (pay-as-you-go) plans. As a matter of fact, all electricity companies have the same obligations regarding billing and charges.

Home Electricity Charges Explained – 3 main charges.

  • Energy Charge
  • Delivery Charge
  • Tax

Understanding your home electricity statement.

First, let me explain how is how while you read your electricity bill. The Retail Electricity Provider or electricity company, the TDSP or distribution, and regulation entity, and finally, Uncle Sam (taxes). More than 400 cities in Texas are energy deregulated, this means that the residents in those deregulated areas can choose between several residential electricity providers. On the other hand, if the area is regulated, only one provider will do the whole cycle, in a word, a cooperative.

Home Electricity Charges, Energy charge, Delivery Charge, Taxes

Electricity bill

The REPs are the ones that sell you the electricity, is the final step from the generation of energy to charge the customer of his energy consumption.

The TDSP is in charge to deliver the electricity, read the meter and count the energy usage. They own the power lines, poles, transformers, etc. They maintain the lines and towers so we can have energy delivered. Also, they are the ones who step up in the case of any disputes between the final consumer and the REPs.

What you see in your electricity bill.

Indeed, there are a lot of elements on the electricity bill that are not very easy to understand. The most complicated ones are the delivery charges, these are the TDSP charges. In all honesty, I don’t even understand some of them. However, let me tell you that no one can avoid those. These are charges that the Utility needs to charge us for having the energy delivered to our homes.

Secondly, we have the REP charge. The REPs are the ones who bill us, our electricity company. For one thing, they buy electricity in bulk, they take the risk of energy prices fluctuation. They are the contact with the final energy consumer, etc.

Lastly, we have taxes. Of course, Uncle Sam wants a piece of all this.

Understanding Home Electricity Charges – Regulation

Now, the REPs can’t change meter readings or alter the TDSP charges. With that said, the REP must pass through the customer all TDSP charges intact.

To conclude, I can tell you that is hard for an electricity company to change things on the customer’s electricity bill. However, they may change the electricity rate without previous notice. In despite that, the TDSP is always watching for irregularities from the REPs, this can happen.

Considering this, we urge you to understand how the electricity bill works. With that said, learn how to calculate your energy rate and watch for fluctuations on the energy rate.

If you have questions, we can help you to identify all these energy charges on your bill.

Consider us as your consultant, we will tell you the truth about your current electricity provider and if we find a better deal, we will offer it to you. If we see that your electricity rate is competitive and you are in good hands, we will tell you the whole truth.

Why does Electricity Express explain electricity charges?

Electricity Express has been around since 2010, and we have seen so many customers not knowing what to do and where to turn when they feel that their electricity company is not helping them. Indeed, we work with different energy providers, we study the rest of our competition. We go deep into the documentation that explains all the energy plans and details. With that said, every single electricity plan for every electricity company needs to make public their charges, their energy charges and explain how each plan works.

Energy rates explained – Electric Facts Label – EFL

When you are looking for a new home electricity plan, you can dig into the electricity company website and at the plan details, click on a link that says EFL or Electric Facts Label.

EFL - About Residential Electricity Rates

EFL – About Residential Electricity Rates

You can find ideas about how to save energy in our Power Blog.

You can contact us for more information.

 

855-722-7199

 

Frontier Utilities

 

 

Prepaid Energy

 

https://paylesspower.com/?affiliate=750778

https://www.frontierutilities.com/ElectricityExpress

 

Home electricity for Texas made easy. Indeed, Electricity Express wants everyone, not just our customers, to understand how an electric bill is generated. The energy charge is what the electricity company, REP, or Retail Electric Provider charges for the electricity we consume. The TDSP, Transmission and distribution supplier, is the one who takes care of the power lines, towers, transformers, and meters. As mentioned, they count the number of kilowatts consumed and pass that information to the REP. The REP bills that to everyone without markup. The REP is also in charge to collect sales taxes.

If you have further questions, do not hesitate to call us, we would like to help to understand your home electricity charges.

 

 


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