Electricity Fees And Charges Explained

Understanding your energy bill is important not only to find the best deal but also to ensure that you are not being charged for something that you don’t actually use. There are a lot of charges you can see on your bill some of which are avoidable. Below are the Electricity fees and charges you might come across, check the details with the energy retailer before signing up.

Connection Fee 

The connection fee is the standard move-in fee. This is applied when one moves into a new property that needs to be reconnected to the grid. As per some market reports, the average connection price ranges between $10-$50, however other costs as much as $90. Please note that these prices are just for your reference and actual prices can always vary by virtue of several factors. 

Disconnection Fee 

The disconnection fee is charged when one needs to move out or needs to be disconnected from the grid. The charge ranges from $10- $200.  No costs if you’re in a rental property, it’s usually the landlord or the real estate that takes over the property. 

Dishonor Fee 

If one agrees to pay bills via direct debit, ensure to have adequate funds on or before the payment date. If the fund is insufficient, there’s a charge of $10 to $20 dishonor fee. These prices have come to our knowledge as per some market reports and are again, just for your reference. 

Cheque Dishonor Fee 

This is similar to dishonor fee but this time payment is via cheque. According to market research, a bounced cheque may incur a cheque dishonor fee of approximately $15. Please note, this figure is provided for reference purposes only. 

Late Payment Fee 

Every energy bill includes a ‘due date’, the date which bill must be paid by. Failure to pay by this date means $10 to $50 late payment fee charge. For some customers, they might lose the pay on time discount deal with their retailer. 

Account Establishment Fee 

Some retailers charge new customers for setting up a new account. Check the rates with the power retailers. 

Exit Fee 

Some retailers that offer market contracts charge an ‘exit fee’. This applies if the contract is to be canceled anytime within the first one or two years. This is one thing that you need to look into before signing up an electricity contract for you to avoid additional expenses. 

Debit Card/Credit Card Payment Fee 

Paying bills via credit card or debit card is very common which charges a fee between 1-3% of the total amount being paid. This cost is quite high for those customers who often receive high bills. 

Paper Bill Fee 

Retailers are now moving online for convenience. No charge for email bill but for a paper bill, an extra fee of around $2 will be charged. 

Payment Processing Fee 

Some retailers charge fees for processing payments, usually around 0.2% to $ 1% of the total amount you’re paying. 

How to avoid electricity fees? 

Here are a few tips to avoid these charges: 

• Receive bills via email 
• Pay your bills on time and in full 
• Ensure sufficient funds on your account prior to the payment date 

Rates, fees or charges vary across different energy retailers. If you think your current provider charges too much on added fees, shop around. Econnex may be able to help you find cheaper energy deals.