Your Company’s Energy Bill Explained in Less Than 120 Words

Energy bills can vary in complexity. Understanding the charges and costs included is crucial to avoid overpaying. Here is a condensed list of common charges on energy bills.

kWh: Units of energy consumption

kW: Units of rate of energy consumption, or power.

Energy Use charges: charges relating to the purchase of energy from the provider.

Fuel charge: covers partial cost of fuel for the provider’s generation of energy.

Demand charge: based on the highest kW used in the month, it covers the distribution system, poles, wires, substations, etc.

Base customer charge: a flat fee fixed costs of operating the utility. Examples include the office building, billing and metering systems and equipment, office personnel, taxes, and debt service.

If you have any uncertainties about a charge on your company’s bill. It is recommended to contact UMS, your utility bill specialists.

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