April 20, 2010 admin

Transmission Losses and Ancillary Charges Passed Through, Is That Right?


Bad Texas Electricity Gimmick Number 123

From time to time we bring up some tricks and gimmicks some of the disreputable electric companies will do in Texas and I think it only fair to talk about this little doozy. Some retail electric providers in Texas are advertising a “fixed rate” while then passing on what are known as “transmission losses” and “ancillary charges”. These charges can change from time to time and so some electric companies have written in the finer details of their contract that they can change these if necessary.

Rather Than Secure The Risk To The Customer They Pass The Charges on Secretly

Rather than hedging and accounting for possible changes in these charges like most Texas electric companies will do these disreputable electric companies will modify their advertised fixed rate and pass those through to their customers. This is not a good tactic and is very dishonest and confusing to all but the most educated electricity service consumer.

Texas Consumers Are Quick To Forget

Some of the electric providers that do this practice have the idea that Texas electric customers are soon to forget these tricks and so they feel as though they can get away with it. In fact there are so many new electric service customers that come to Texas each day that these bad electric companies in the market don’t really care about their reputation. If word gets out that they are increasing their electricity rate on their customers they simply keep doing the same thing. They know that there are plenty more electric customers that will fall for the same old tricks again and again without being the wiser.

More Common Tricks Involve Hiding TDSP Charges

Unfortunately there are electric companies in Texas that do this hidden fee gimmick in their electric rate but it is not the norm. A much more commonly used trick beyond this is to advertise an unbundled electricity price that does not include TDSP charges. Most electric companies bundle in the TDSP charges but since it is arguably not required by law not all electric providers will bundle it in.

So even if an electric company doesn’t bundle in the TDSP charges in their electric rate they are also being misleading. What will end up happening is you will get your first months electric bill and notice your rate is a few cents higher than what you were advertised. You may wonder how an electricity company can get away with doing this.

These Texas electricity suppliers believe the same way as the other energy companies I mentioned that know that there are many more electric service customers willing to fall for the same trick. The Texas consumer is quick to forget these types of things according to them and so they will continue to do the same dishonest and sneaky tactic of leaving off the TDSP charges from their advertised electric rate.

Of course you will find the total bundled electricity rate based on area in the electricity facts label and terms of service but how many people take the time to examine these. The advertised rate in bold colorful print is what most people are sold on. If the electric rate is really a few cents higher than this it is misleading otherwise why would the reputable electricity companies be bundling in those charges in their advertised electricity prices?

Compare Bundled Rates With No Hidden Charges

Before you fall for one of these stunts be sure to click on our electricity rates comparison chart and see all-in bundled electricity rates that include all fees and charges accept for taxes. You can compare based on fixed or variable terms and pick the plan that best meets your situation. There are several reputable ethically run electricity providers in Texas to choose from in the chart. Just enter your zip code and click on “compare” to get started.

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

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