Understanding the Typical Electricity Bill

The dreaded electricity bill comes in the mail every month or every quarter, depending who you are and where you are. A homeowner opens it up and sees all the text spread out among the pages. The ending balance accumulates with each line. Have you ever stopped to wonder what these charges actually mean? An electric bill usually breaks down into three different categories of charges. • Delivery Charges Delivery charges account for the energy transporting from the provider to the customer. These are listed as customer charges, distribution delivery charges, and meter charges. The funds offset the administrative work and maintenance of equipment. • Supply Charges The amount of energy used is billed as supply charges. A majority of providers use kilowatt per hour as a measurement. These may be listed on a bill as energy charges, market value adjustments, supply cost adjustments, and transmission service charges. • Additional Charges Electricity bills include many types of additional charges. Taxes are included in a bill. An environmental cost recovery charge pays for the cleanup efforts from past energy providers. Each area may have additional charges that recover duties the provider has to pay the city. Electric bills can be confusing. Home owners feel overwhelmed by the amount of the charges listed. Understanding services provided helps to ease the frustrations. Homes receive more services than just the energy powering the light bulb. Customer service handles billing, troubleshooting, scheduling, and maintenance issues. A provider maintains the equipment needed to effectively deliver the energy. For further understanding of your electric bill, most providers mail an explanation of charges. The same explanation is also usually available on the internet. If you would like any explanation on a Utilibill provided electricity bill please contact us and we will walk you through any item of interest info@utilibill.com.au

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