How to read commercial energy bills. There are many sections to a commercial energy bill, and most of them are not directly relevant to your business.
However, focusing on the most elements will help you manage your energy costs more effectively. The five most critical components of a commercial bill are explained.
These components include the:
1. Service Address
2. Rate Plan
3. Amount Owed
4. Account Number
5. Meter Number.
Keeping this portion for your records is helpful, as it shows essential information about your business’ usage month over month.
When it comes to reading your commercial energy bill, you should be able to identify the most critical items on the page quickly. This is the measurement for the quantity of electricity you use. The kWh is the kilowatt-hour that you consume.
What is a Kilowatt-hour?
The first thing you should learn about your bill is the unit of consumption. The usage will help you determine the amount of electricity that you use. This is measured in kilowatt-hours.
The higher the kilowatt-hours, the higher your bill will be. If your invoice is hefty, the kWh totals will be high, and you should try to reduce usage as much as possible.
If your bill is small and manageable, you can still cut back on the number of lights used in your offices.
In addition to the kWh, an electric bill includes many other charges. Each of these has a specific rate and usage number that adds up to the overall amount of the bill.
Difference Between Supply and Delivery Explained
Commercial utility bills and residential as well have 2 distinct components regarding consumption usage. The difference explained should make more sense because understanding how utilities separate billable components.
Supply – Where the Cost Savings Reside
- This is the actual electricity or natural gas that a commercial or small business consumes. Firstly, you should look for the kilowatt-hour. It will show amount of energy used per hour. Natural gas is measured in therms.
- Public utilities charge an amount based on the procurement contract they have executed. But there are different thresholds for supply usage. For the first 500 kWh, you may pay a different price than the 501st and upward.
- In the case of a commercial energy bill, a kilowatt-hour is two measurements. One measure is the wattage, while the other measures the time it takes to consume the energy.
- New Jersey Energy deregulation allows consumers, commercial, industrial, and small business to choose their supplier without penalty. 3rd party suppliers can provide cost savings for business owners and property managers.
- Savings can be substantial through The Energy Consultant NJ with “No Cost Savings Analysis.” For larger accounts the “Reverse Procurement Auction” where suppliers try to outbid each other for your business.
Delivery – Public Utilities Need to Make Money to Survive … Right?
- The delivery component of your energy bill is something you cannot choose. Delivery of electricity and natural gas is NOT deregulated.
- The cost of delivery is set by the NJ Public Board of Utilities and is billed by local utility companies. Delivery is how the utility company makes it’s profit. The actual delivery component consists of
- Delivery charges cover a range of different aspects of moving electricity. From generation to distribution to end users.
- Generation – production of energy at a central plant
- Transmission – pushes electricity into the complex web known as a grid
- Electricity Substations – accepts the electricity and move it further along the grid
- Transformers – move the electricity through high tension power lines
- Distribution Power Lines – connect and complete the delivery to buildings, factories, and other structures
This short guide should explain how to read commercial energy bills. In addition utility companies also handle a bevy of additional services such as … metering, billing, maintenance, and customer service.
Remember Mantis Innovation Account Executives are experts, and an essential part of your success will be in communicating with them every step of the way.
