It’s a task nobody ever wants to do, but everybody should: Read the fine print. This conventional wisdom applies whether you’re picking an insurance plan, downloading an app on your phone – or purchasing a deregulated energy plan.
When you sign up for a natural gas or electricity plan, you’ll be sent a document or multiple documents that detail every aspect of that plan. In Texas, this document is known as an Electricity Facts Label, or EFL. In other states, this information may be split across two documents, a Terms & Conditions document and a Disclosure Statement.
It can feel overwhelming trying to cut through the jargon and the numbers to find the information you need to know – that’s why Choose Energy is here to help. Our goal is to educate customers so they can make informed decisions regarding their energy needs.
Read on for our guidance on how to understand your electricity plan.
States other than Texas
Suppliers who operate in states other than Texas provide plan information in a Terms & Conditions document as well as a Disclosure Statement. In some cases, these documents are combined into one.
Depending on the supplier, these documents may vary on the placement of information, but all should include the following:
Introductory Statement/Background
Specifies the supplier name and licensing information, including the supplier’s license number.
Right of Rescission
The period and method by which a customer can rescind his or her energy contract without being subject to penalties or cancellation fees.
Key Definitions
Defines pricing terms used throughout the contract. Refer to the table below for the most common terms defined in this section.
