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Your electricity utility delivers electricity to your home or business and issues your bill. The bill includes the costs for the electricity that you use, the services your local utility provides and some other costs as outlined below. Below are two sample electricity bills. One is for households and small businesses on Time-of-Use rates.
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- Identify the bill you’re reading and your billing system. Depending on where you live in the country, your electricity bill can be bundled with other municipal bills – so it's important to know what you're looking at!
- Know your monthly billing plan. This step is crucial: are you on a budget billing plan? Or, are you being charged for your monthly usage? If you're on a monthly budget billing plan, your utility takes the number of kWh you consumed last year, assumes that you'll use around the same this year, and creates a monthly average for you to pay.
- Understand your breakdown of charges. There are several charges that go into your energy bill. Your payment is not only for the electricity you consume but also for helping the utility maintain the grid and pay the salaries of its workers.
- Know your monthly electricity consumption. It's also important to ensure you're correctly calculating the amount of electricity you use each month: many bills will break out your daily use or show you how your monthly usage changes over the course of the year.
Feb 27, 2024 · Demand charges are a new way you might be charged on your electric bill. Learn more about what they are and how they work.
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Nov 6, 2023 · Learning how to read an electric bill may seem complex at first, but it becomes easier once you understand the key components and how they're presented. In this post, we’ll walk you through an electric bill breakdown so you can take the first step toward being in control of your energy expenses.
Feb 16, 2024 · Let's clarify the confusing parts of an electric bill, providing a path to better understand your energy use. This enables you to make decisions that result in ongoing savings and reduced consumption.
Aug 18, 2021 · Understand the difference between a consumption & a demand charge on an utility bill & how to reduce energy use to prevent unexpected charges.
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Jun 6, 2024 · You probably pay attention to how much you have to pay every month for electricity. Here's what all those other numbers on your power bill mean.
