Understanding the Average Price per kWh on Your Electricity Facts Label (EFL)

If you’re reviewing your plan details or comparing electricity plans, you may notice an average price per kilowatt-hour (kWh) listed on the Electricity Facts Label (EFL). This price is meant to help you compare plans, but it may not exactly match what you see on your bill. The Public Utility Commission of Texas (PUC) defines how average prices are calculated on both the EFL and customer bills to ensure consistency and transparency across providers.

This page explains what the EFL average price means, how it’s calculated and how to use it correctly when choosing or reviewing a plan.

What Is the Average Price per kWh on an EFL?

The average price per kWh on your EFL is based on exactly 500, 1000, or 2000 kWh of usage, but your actual usage may vary. It can help you compare electricity rates side by side, understand how pricing changes at different usage levels and choose a plan that best fits your home. It’s a comparison tool and meant to be representative – not a prediction of your exact monthly bill.

It's calculated using:

  • A specific electricity usage level (500, 1000, and 2000 kWh)
  • The recurring plan-related charges associated with that usage level

Your EFL pricing does not include taxes and any non-recurring fees in this calculation. This creates a sample average price to show how a plan may perform at different usage amounts.

Why Doesn't the EFL Price Always Match My Bill?

It’s normal for your bill’s average price to differ from the EFL price because your bill is based on actual usage, while the EFL is based on specific usage amounts.

Your EFL price assumes:

  • Specific usage amounts (500, 1000 and 2000 kWh)
  • Monthly recurring charges and specific plan details

Your actual bill reflects:

  • Your exact usage
  • Your actual number of billing days
  • Monthly recurring charges and specific plan details

Because real usage rarely is exactly 500, 1000 or 2000 kWh, your bill’s average price can be higher or lower than the EFL examples — even though your energy rate hasn’t changed.

Does a Higher EFL Average Price Mean the Plan Is More Expensive?

Not necessarily. Some plans are designed to work best at certain usage levels. If your usage is higher or lower than the EFL examples shown, the average price will change.

That’s why EFLs show multiple usage levels — to help you see how a plan behaves across different scenarios.

How Should I Use the EFL When Choosing a Plan?

For best results, focus on the usage level closest to how much electricity you normally use and use the EFL to compare plans, not to estimate an exact bill.

If your usage changes, your average price will change too — even though your plan rate remains the same.

Bottom Line

The average price per kWh on your EFL is a planning and comparison tool, not a bill forecast. Differences between the EFL price and your bill are common and expected, especially when usage or billing days vary.

Understanding how the EFL works can help you choose the right plan and avoid surprises later.

 

 

 

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