Why is my Texas electric bill higher than the rate listed on my Electricity Facts Label?

Your bill shows an average price: the charges it counts, divided by the kilowatt-hours (kWh) you used. Your Electricity Facts Label (EFL) lists average prices at three set usage levels: 500, 1,000, and 2,000 kWh. Your month's usage may not match one of them, so the two numbers can differ. Usage is one possible reason, not the only one.

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Why two numbers can differ

Two different measurements. Same word, "price."

  • The EFL lists average prices at three set usage levels. It cannot know your exact month.
  • Your bill shows the average price for the kWh you actually used.

Fixed charges can be one reason. A flat charge spread over fewer kWh makes the average price per kWh higher. Spread over more kWh, it makes it lower.

A worked example (made-up numbers)

Example only. Made-up numbers: a base charge of $10.00 and an energy charge of $0.10 per kWh. Not a real bill, rate, or price. Real contracts differ. This example counts only these two charges.

Example only. Made-up numbers: a base charge of $10.00 and an energy charge of $0.10 per kWh. Not a real bill, rate, or price. Real contracts differ. This example counts only these two charges.
UsageEnergy chargeBase chargeTotalAverage price
500 kWh$50.00$10.00$60.0012.0 cents per kWh
1,000 kWh$100.00$10.00$110.0011.0 cents per kWh
2,000 kWh$200.00$10.00$210.0010.5 cents per kWh

Same energy charge each time. The average price still moves, because the flat charge is divided by a different number of kWh.

Where to find it on your bill

  • Usage: look for kilowatt-hours (kWh).
  • Average price: look for the line "The average price you paid for electric service this month." The rule calls it a calculation of the average unit price for the billing period, in cents per kilowatt-hour. Ask your provider if anything about it is unclear.
  • Your EFL: it is part of your contract documents. See What is an Electricity Facts Label?.

How to line your bill up with your EFL

  1. Find your usage in kWh on the bill.
  2. On your EFL, find the usage level closest to yours: 500, 1,000, or 2,000 kWh.
  3. Find the average price on your bill.
  4. Read the charge names on your bill. Base, energy, and delivery charges explained.
  5. Questions left? Call your provider and ask them to walk through the bill. Or upload it to Bill Check.

Common Questions

What is the average price on my bill?

It is a required line titled "The average price you paid for electric service this month." The rule calls it a calculation of the average unit price for the billing period, in cents per kilowatt-hour. Ask your provider if anything about it is unclear.

Why does the average price change when my usage changes?

Flat charges do not change with usage. Spread over more kWh, they add less to each kWh. Spread over fewer, they add more. The made-up example above shows it.

Do delivery charges change the number?

Delivery charges may be their own line on your bill. If you are unsure whether the average price line includes them, ask your provider.

Does a higher bill mean something is wrong?

Not by itself. A different usage level, different dates in the service period, or different charges can each change the total. Check the lines, then ask your provider about anything unclear.

What if the numbers still do not match?

Your contract documents, including your EFL and Terms of Service, set out your plan's terms. Call your provider and ask them to walk through the bill line by line.

Want to see what is on your own bill? Check my bill. Automated estimate from your uploaded bill. Not a substitute for your actual bill; details may be misread.

This page is general education about Texas electricity. It is not legal, financial, or professional advice. Rules and bills vary, so check your own bill and contract.

Last reviewed: 2026-10-05. Sources are listed below. If a rule or your contract says something different, the rule and your contract control.

Sources

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RateCurrent is not an electricity provider, retail electric provider, or utility. RateCurrent is not affiliated with or endorsed by the Public Utility Commission of Texas, ERCOT, or any Texas utility. The state’s official plan-comparison website is Power to Choose (powertochoose.org).

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