You get your power bill in the mail and you find the final total at the bottom, but how exactly does it all add up? What are you paying for, and how are they charging you?
Finding the electricity rate on your power bill is the first step to getting a better grip on how your energy company is charging you for their services. So let’s take a look at how to find your electricity rate on your power bill, as well as some other terms that can help you break down the numbers.
How to find the electricity rate on your power bill
When looking for the electricity rate on your power bill, you should look for a line called “supply charge.” The supply charge on your electric bill refers to the cost associated with the amount of energy (measured in kilowatt-hours, or kWh) your business uses and is based on the rate you pay for each kWh.
What’s a kWh? A kWh is a unit of measurement that quantifies your electricity consumption, representing specifically the kilowatts of power your business uses for one hour. Electric companies use kWh as a measurement for calculating your electricity usage and subsequent charges for your energy bill.
To locate the rate for kWh on your electric bill, look for the “Supply Charges” or “Electricity Usage” section. The rate per kWh should be clearly listed, typically expressed in cents per kWh.
Your supply charge is determined by multiplying your rate per kWh by the total number of kWhs you consumed during the billing period. So let’s say your electric bill states that the rate for each kWh is $0.10, and during the billing period your business consumed 2,500 kWh.
Supply Charge = Rate per kWh * Total kWh Consumed
Supply Charge = $0.10/kWh * 2,500 kWh
Supply Charge = $250
In this example, your supply charge (or your electricity rate) for the billing period would be $250.
What are the different sections of my power bill?
After finding the rate you are paying on your electricity bill, you might still have questions about how to read your energy bill. Let’s take a look at some of the other items that affect your monthly rate:
- Billing plan: The billing plan outlines the structure of your energy payments. It determines how you will be billed—whether that’s a budget average plan (where you pay a consistent amount each month based on your annual usage) or a monthly usage plan (where your bill varies depending on your actual consumption each month). Understanding your billing plan helps you predict your monthly energy expenses and manage your cash flow effectively.
- Delivery charge: The delivery charge covers the cost of transporting electricity from the power plant to your business. This includes the maintenance of infrastructure such as power lines, substations, and other transmission and distribution systems. The delivery charge is usually regulated and remains consistent regardless of your energy supplier. It’s important to understand this charge as it contributes to your total energy costs.
- Bottom line: The bottom line refers to the total cost you pay for your energy usage, combining both the supply and delivery charges—in other words, how much you’ll pay. Evaluating the bottom line helps you understand the true cost of your energy usage and is essential for making informed decisions about your business.
Understand your power bill
Looking to get in control of your business’s energy spend? The best way to control your energy budget is to know what you’re spending it on—so get your business a smart meter!
Electripure’s proprietary CleanPQ smart meter can give you the data you need to see where you’re spending the most power and where it’s being wasted. Plus, the CleanPQ cleans up dirty harmonics in your power to immediately deliver a cost savings of up to 20% on your monthly power bill.
Contact us today and our experts can come evaluate your facility for free!