As you can see, AEP is billing this customer in dollars per kWh. The customer used a total of 2,983 kWh for this billing period and they were charged at $0.07013 per kWh for a total amount of $209.20. In Pennsylvania, electricity suppliers also are required to collect a Gross Receipts Tax, which happens to be accounted for on this bill.
How To Reduce Business Electricity Bill Costs
There are several ways to reduce your electricity costs at your business. Understanding your electric bill and how it is calculated is a great first step. Next, you can look for ways to reduce your total costs by using some of the following energy-saving tips.
Get A Utility Bill Audit
A utility bill audit is designed to catch errors and billing discrepancies on your electricity invoices. Utility audits typically follow a process by which the auditor looks at the last three to four years’ worth of invoices to catch billing errors. When an audit is successful, you could even be entitled to a refund for overages paid or a bill reduction moving forward. Diversegy offers sophisticated utility billing audit services that have helped our clients save significantly on their energy expenses.
Understand Your Electric Supply Contract
If you are located in a deregulated state and have chosen an energy broker to find a better supply rate for your business, it’s important to understand the language in your business energy contract. Most fixed-rate electricity plans offer a set price per kilowatt hour ($/kWh); however, some more sophisticated contracts offer different options. It’s best to consult with your commercial energy broker as to the best-fit energy supply solution for your business based on your electricity consumption. Signing up for the right contract structure could save you lots of money in energy costs.
Monitor Your Bills
Another key aspect of tracking energy costs is to monitor your energy consumption and total bill costs each month. Many electric utility bills now come with usage charts that allow you to compare similar periods in earlier years. It can also prove to be advantageous to track your kWh usage and total costs in an excel spreadsheet each month. Comparing January of this year’s numbers to January of last year can help you to see if your costs are increasing or decreasing. This exercise can also help you spot billing discrepancies and errors.
Looking To Reduce Your Commercial Electricity Costs?
In summary, finding ways to reduce your electric costs at your business starts with understanding the billing components of your commercial energy bill. Next, it is best to work with an energy professional who can guide you through your options to save money. Our team of energy experts has been helping commercial and industrial businesses save thousands of dollars on energy bills for many years. Contact our team today to explore your energy-saving options.