THE SECRETS OF THE HOME ELECTRIC BILL

10 Reasons Electric Bills Are So Confusing
12 March 2012 (Compare Electricity Rates)

"…The mass of numbers, abbreviations and technical jargon are complicated…[L]ocal fees and mysterious service charges can make things even more of a pain…[1] Separate Charges for Supply and Distribution…[E]nergy industry [deregulation] allowed [utility companies] to make separate charges for…energy distribution and…electricity supply…[2] Billing Riders…[R]egulatory authorities allow the energy corporations to pass on [charges for expenses like] the repair and maintenance on service lines…[3] Too Much Information…[I]temization is intended to keep consumers informed…but in most cases, it only serves to confuse people more…

"…[4] Billing Formats Can Differ…If you do manage to decode your bill…[y]ou could find yourself back at square one with a new electric company…[5] Contract Options…Choosing [from among different plans and contract options] can be difficult, but figuring out the nuts and bolts of your selection by examining your monthly bill is usually even more complicated…[6] Non-Standard Meters…[T]here are also no standardized meters in most places. Depending on the contractor who built your home, you may have an interval or time of use meter, two rate or controlled load…"

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"…[7] Peak and Off-Peak Hours…[To help drive customers to be more energy efficient,] many electric companies…[use] this business model…[8] Unfamiliar Abbreviations…Often, there’s a dedicated section for familiarizing yourself with these abbreviations; the best possible way to eliminate this source of confusion is to find it…

"[9] Seasonally Differentiated Billing…Much like “on-peak” and “off-peak” hours, seasonally differentiated billing can cause energy rates to hike during certain months. Even if your basic usage is the same, it could still cost more…[10] What is a KWH?…a kilowatt-hour is a unit of energy…[Y]ou may be charged baseline allowance per kilowatt-hour. Exceeding this usage allowance can cause higher billing rates per kilowatt-hour for the rest of the billing cycle…"