Posted by: Frank Eakin |

The Difference Between a REP and a TDSP (TDU)

What is the difference between the REP and the TDSP?

RETAIL ELECTRICITY PROVIDER (REP’S): In the Texas deregulated market, these are electric companies market and bill you. They buy energy from the electric generation companies and resell them to homeowners, renters and businesses.  They are sometimes referred to as energy providers, light companies, electric suppliers and power companies.

Today, in states where customers have the power to choose their provider, the old brand names that were formerly monopolies are now marketing companies, and have no influence over outage corrections and how fast a customer’s electricity is turned on. You can check electricity rates by zip code for the most established electric companies in Texas, as well as customer reviews.

TRANSMISSION AND DELIVERY SERVICE PROVIDERS (TDSP’S): These are regulated entities that transmit electricity, and are also called “TDU’s.” These companies maintain the lines, correct power outages and read your meter to determine how many kilowatt hours you will be billed.

TDSP’s are required by law to offer you the same service, regardless of which electric company you are enrolled with.  When TDSP’s correct outages, they do not know what electric company that 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 TDSPs in the deregulated zones of Texas, including CenterPoint Energy in the Houston electricity market, Oncor Electric Delivery in the Dallas electricity market, and other TDSPs servicing other areas, including Texas-New Mexico Power, AEP Texas North, AEP Texas Central and Sharyland Utilities.

Compare Texas electricity plans vetted to prevent billing surprises


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