Posted by: Frank Eakin | June 5, 2019

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 Texas, these are marketing and billing companies that buy energy from the electric generation companies and resell them to renters, homeowners or businesses.  They are sometimes referred to as “providers” or  “suppliers.” Today, in states where customers have a choice of providers, the old brand names that were formerly monopolies are simply marketing companies, and have no influence over outage corrections and how fast a customer’s electricity is turned on.

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 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 REP you are enrolled with.  When TDSP’s correct outages, they do not know what provider customers are using.

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

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