It’s that time of the month again, when you’re expecting your electricity bill in the mail. You know that it comes at the same time every month and you usually head out to the mailbox, open up the letter and send a check or pay your bill online – but what are you actually paying for? What does each section of the bill actually mean? Let’s find out!
The Price Of Power Is Rising
Homeowners are often concerned when it comes rising prices on their energy bill. Well, the cost and taxes for residential electricity are steadily on the rise. But you can negotiate pricing and stay on top of the climb by knowing how to effectively read your energy bill.
The Three Main Components Of An Energy Bill:
- Energy Only: this area of the electricity bill tells you the amount of energy that was used during the specified timeframe. Since energy prices are not set in stone, these prices can change month to month.
- TDSP or Wires Charges: this section stands for Transmission and Distribution Pass Thru and unfortunately this is the part that is regulated by the government, so it is non-negotiable.
- Taxes: taxes are unavoidable in just about everything we do, and your electricity bill is no exception to the rule. In most cases taxes are paid directly to the state.
Other Areas Of Concern
There are a few other things you should be aware of when it comes to your electricity bill. Contrary to popular belief, you are in fact, in a contract with your electricity provider. Even though you may not have signed anything, you are in an agreement to receive electricity for a fee. If you need to terminate your contract, there is often a cancellation fee of around $15 for every remaining month in your contract.
Want to learn more about your electricity bill and receive further explanation about the specifics of each cost? We recommend contacting your local service provider and they will walk you through it.
Lon Lockwood Electric specializes in residential installation, repair, and maintenance of electrical work in Rochester, New York. As a locally owned company, we understand the pride of Rochester, NY residents in our great city and the surrounding counties. Rely on us for any kind of residential electrical services.