What Are Electricity Supply and Delivery Charges?

January 25, 2022

Supply Charges vs. Delivery Charges on your Electric Bill

electricity supply charges vs distribution charges

Depending on how your electricity billing is setup, you will likely receive one large electric bill for your business from your default local utility, or, if you've chosen to shop for lower rates on your electric bill, you may receive two smaller bills. One from your local utility company, and one from your commercial wholesale electric supplier.

Regardless, each month you will see line items for supply charge and a delivery charge on your electric bill.

Electricity Supply Charges vs. Electricity Delivery Charges

When searching through your bill you will most likely see a section for Electricity Supply Services. These charges include your electricity supply charge and are for the actual electricity supply that you purchase from a local utility company, or from a retail electricity provider.

Every month you will see a Delivery Services section on your energy bill, which includes all of your delivery charges. Your delivery charges are for the distribution of electricity to your business, and also include the maintenance and repair of wires, poles, and other electric delivery components. The delivery charges for a state is usually regulated by the state's public utility commission.

Take look at this sample business electric bill from ComEd.

Need help sorting through your electricity charges? Contact Ananta Energy for your free energy analysis and find out way we can save you on your electricity bill.

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