The Difference Between a REP and a TDSP (TDU)

Many Texans want to know: “What is the difference between the REP and the TDSP?” While you may not realize it, knowing the difference between electric companies and utility copmanies can have a big impact in Texas’ deregulated energy market.

Not to worry, we’ve got the details on Retail Energy Providers, Transmission and Distribution Service Providers, also known as TDSPs or TDUs, right here.

Retail Electricity Providers (REPs):

In the Texas deregulated market, these are electric companies market electricity and charge you.

They buy energy from the electric generation companies and resell them to homeowners, renters, and businesses. They’re sometimes referred to as energy providers, light companies, electric suppliers and power companies. Whatever you call them, they’re the folks who bill you for your monthly energy usage.

Today, in states where customers have the power to choose their provider, the old brand names that were formerly monopolies are now marketing companies. They have no influence over outage corrections or how fast a customer’s electricity is turned on.

To learn more about light companies and their rates, you can compare electricity rates from the most trusted electric companies and read customer reviews.

Transmission and Delivery Service Providers (TDSPs):

These are regulated entities that transmit electricity, and are also called “TDUs.” These companies maintain the lines, correct power outages and read your meter to determine how many kWhs for which you will be billed.

TDUs are required by law to offer you the same service, regardless of which electric company you’re enrolled with.

When a TDU corrects outages, they don’t know what electric company those customers are using. TDUs use smart meter technology and you can access your home’s historic energy usage at Smart Meter Texas.

There are six TDUs in the deregulated zones of Texas, including CenterPoint Energy in Houston, Oncor Electric Delivery in Dallas, and other TDSPs servicing other areas, including Texas-New Mexico Power, AEP Texas North, AEP Texas Central and Sharyland Utilities.


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