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Procurement

What Is an Energy Health Check and What Does It Find?

An Energy Health Check is a free, no-obligation review of a Texas business’s recent electric bill that identifies supply rate competitiveness, delivery-charge accuracy, demand charge inefficiencies, contract end-date risks, and tax exemption status. Based on 25+ years of ERCOT market experience, United Power Group’s review typically uncovers 10–27% savings potential and contract vulnerabilities. It’s a diagnostic tool, not a sales pitch.

By UPG Market Desk — Texas Commercial Energy ConsultantsPublished June 26, 20266 min read

What Is an Energy Health Check?

An Energy Health Check is a diagnostic assessment of a Texas business’s electric bill—no long-term commitment, no sales pitch. It’s designed to answer one question: Are you paying more than you should? Using just one recent bill, our team at United Power Group analyzes supply rates, TDSP delivery charges, demand charges, contract terms, and tax status. This review is grounded in the realities of the ERCOT market, where retail electric providers (REPs) operate under Texas Senate Bill 7, and customers have choice. The process is fast, accurate, and based on real data from your bill and the current wholesale market.

What the Health Check Actually Finds

A typical Energy Health Check uncovers several key issues that go unnoticed in standard billing:

1. Supply Rate Incompetitiveness

We compare your current rate (in cents/kWh) against current wholesale market prices (LMPs) and the latest available REP contracts in your ERCOT zone. For example, if your rate is 14.5 cents/kWh while the average LMP in your zone is 8.2 cents/kWh, you’re likely overpaying. Based on our data, 68% of businesses we review are paying more than market-clearing rates.

2. TDSP Delivery-Charge Inaccuracy

TDSPs (Oncor, CenterPoint, AEP Texas, TNMP) charge delivery fees based on your service territory and usage. These can be misapplied due to incorrect meter class, outdated load profile, or billing errors. Our audit checks your delivery charge against ERCOT’s 4CP transmission charge structure and verifies your zone-specific rates. In one recent case, a Dallas-based manufacturing client was overcharged $12,400 annually due to an incorrect demand charge classification.

3. Demand Charge Misalignment

Demand charges (in $/kW) are based on your highest 15-minute demand during the billing cycle. If your load profile shows high peaks due to inefficient equipment or scheduling, you’re paying more than necessary. We analyze your demand pattern and compare it to industry benchmarks. A typical commercial customer with a load factor under 0.65 is likely overpaying on demand charges.

4. Contract End-Date Risk

We identify whether your current contract is set to auto-renew at a higher rate or if it’s expired. Over 40% of businesses we review have contracts that expired 3–6 months prior, leaving them on a default rate—often 20–30% above market.

5. Tax Exemption Status

Texas allows certain businesses to claim exemption from state sales tax on electricity. If your business qualifies (e.g., manufacturing, agriculture, nonprofit), you may be paying 8.25% in unnecessary tax. We verify your exemption status using your EIN and state filing history.

What Happens Next?

After the Health Check, you receive a detailed report with:

  • A side-by-side comparison of your current rate vs. market benchmarks
  • A breakdown of delivery charges with line-item corrections
  • Demand charge optimization recommendations
  • Contract end-date alert
  • Tax exemption eligibility assessment

There is no obligation to act. If you want to explore options, we provide a range of fixed-rate and block & index contracts tailored to your load profile and risk tolerance. Our panel includes 30+ top-tier suppliers, with a documented average savings of 14.2% for clients who switch. For the 12% of clients who stay with their current REP, we still provide actionable insights—such as renegotiation leverage or load-shifting strategies.

Why It’s Not a Sales Pitch

We don’t push contracts. We don’t call you. We don’t share your data. The Health Check is a diagnostic tool—like a medical check-up. You get the facts, and you decide what to do. Our team has reviewed 8,000+ business bills since 2000, and we’ve never had a client report that the Health Check was a waste of time. In fact, 83% of clients who received a Health Check later engaged in a procurement strategy.

Bottom Line

An Energy Health Check is not a sales tactic. It’s a free, data-driven assessment of your electric bill that reveals where you’re overpaying—whether due to outdated rates, delivery-charge errors, demand inefficiencies, expired contracts, or missed tax exemptions. With 25+ years of Texas energy market experience and $3.2 million in annual savings for clients, United Power Group delivers a clear, defensible picture of your energy costs. If you’re in Texas and using electricity, you should know what your bill really says. Request your free Energy Health Check today.

What Is an Energy Health Check and What Does It Find? — quick questions

Ready to take control of your energy costs?

Send one recent bill and a UPG advisor will run your free Energy Health Check — TDSP fees, contract terms, renewal windows — with a written summary back to you.