We all pay for energy every month, but have you really taken a look at the charges on your electricity bill? Do you know if there are fees beyond the price per kilowatt-hour (kWh) for electricity use?
It’s a guarantee that the usage charge isn’t the only fee being factored into your energy bill. If you want to reduce your monthly costs it helps to know more about the fees on your energy bill and what they cover.
Fees You Will See on Energy Bills
The total you pay for your monthly electricity use isn’t just based on how many kWhs you use. There are a number of charges that go into the total amount. Plus, you may even have electricity charges on more than one bill.
Fees May Be on One or Two Energy Bills
First, there’s a point to clarify. You may receive one or two energy bills with different energy fees depending on your market. In some markets, electricity suppliers like Provider Power send a bill separate from the utility. In other markets, all of the fees are combined on a single energy bill.
Regardless of how many energy bills you receive, you’re likely to see the fees below that we’ve explained for you!
Supply – This is where you’ll see your kWh rate and the charge for your electricity use. The wholesale energy supply cost is a big component of the kWh rate. However, the supply fee could also be a flat rate that you pay for a certain amount of electricity every month.
Delivery – The delivery fee is a little tricky because it’s a blanket term that could include a lot of different things. The supply fee may even be lumped into the delivery charge along with customer service and billing service charges.
Transmission – Transmission refers to the electric grid infrastructure that’s needed for delivering electricity to homes and businesses. The transmission fee is what customers pay to help cover the cost of building and maintaining the electric grid. However, this charge may be included in the delivery fee.
Minimum Utility Charge – The utility is allowed to charge a minimum fee regardless of the amount of energy that’s used.
Taxes – We pay taxes on almost everything, including energy. The tax on an energy bill is known as value-add tax (VAT) or goods and service tax (GST). There may be additional taxes, depending on your location. For example, often there is a state surcharge tax. Taxes are both fixed and variable since they are a set percentage of the cost for using energy.
Penalty Fees – These are fees for things like late payments, rejected payments, etc.
For more information on what fees to expect, check out our post on how to read your Provider Power energy bill.
At Provider Power we’re ready to help you with all your energy needs, and that includes figuring out the associated costs. You can give our customer care reps a call or send us an email for more information.
If you’re ready to sign up for service or switch energy suppliers, use your zip code to find energy plans in Maine, Massachusetts and New Hampshire.