When you get your commercial energy bill, do you actually know what you’re paying for? Below, we break down your energy bill to help you understand where your money is going and what the individual charges mean.
Types of Billing
First, let’s address the two most common types of billing:
- Consolidated billing occurs when the bill contains both your local utility’s service charges and the energy supplier’s charges for the electricity or natural gas. Most UGI EnergyLink customers receive one consolidated statement from their local utility company. These charges should be paid directly to the utility company at the address listed on the bill.
- Dual billing occurs when the customer receives one bill from their local utility company and another bill from the supplier. This is not double billing. The utility company sends a bill for charges on the utility side, while the supplier sends a bill for the charges on the supplier side. A close look at your statement shows that the utility company is not charging you for the electricity or gas you used. However, you will see other charges, such as a customer charge, a distribution charge, and a migration rider, if applicable. These are essentially the costs for owning and maintaining the pipelines, wires and other infrastructure, and for delivering the natural gas or electricity to your location, reading the meter, etc. Your UGI EnergyLink invoice charges cover your actual natural gas or electricity itself.
So, what specific charges can you expect to see from your local utility company and UGI EnergyLink?
Charges from Your Utility Company
- Customer Charge: A utilities charge for billing, maintaining lines or pipes, and meter reading.
- Distribution Charge: The charge to deliver natural gas through the utility lines to you, the customer.
- Migration Rider: Your local distribution company (LDC) might charge a Change Migration rider, which is equal to a Gas Cost Adjustment (GCA). This rider applies to some utilities for 12 months. Please check with your LDC about this charge.
Charges from UGI EnergyLink
Commercial energy charges vary depending on which type of contract you have. You may receive:
- Commodity Charges: The cost of electricity or natural gas itself. Everyone will have this charge either on their UGI EnergyLink dual bill or on the consolidated bill.
- Customer Charge: This covers the cost of billing and maintaining your account as a customer.
Variable and Fixed Rates
Depending on your commercial energy plan, you might pay a variable rate or a fixed rate. What’s the difference, and what are the benefits of each?
- A variable rate is a rate that fluctuates monthly. When you choose to be billed at a variable rate, the price you pay varies each billing cycle, based on current prices in the wholesale power market. If the market rate increases, so does your individual rate. Likewise, if the market rate decreases, your rate does too.
- A fixed rate allows you to lock in one flat rate for a specified amount of time. For example, our Commercial Winter Lock Program enables you to lock in a price during high-demand winter months (November through March). By locking in your rate, you benefit from price security and protection against rising energy costs. As a business owner trying to avoid unpredictable monthly expenses, a fixed rate can help control costs, and help with budgeting your energy expenses.
Visit this page on our website to view sample copies of bills from various utility providers. Select your utility provider to see an example of what a statement from this provider might look like.
Still have questions about your commercial energy bill? UGI EnergyLink is here to help you navigate your energy needs and pricing questions. Give us a call at 1-800-427-8545 to speak with one of our friendly customer service representatives at our headquarters in Wyomissing, Pa.