This One Line on Your Utilities Bill Could Cost You Hundreds

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If you haven’t looked closely at your utility bills lately, there could be a line quietly draining your bank account every single month.

It might be labeled something like customer charge, estimated usage or energy cost adjustment. Whatever it’s called on your bill, it often has very little to do with how much electricity, gas or water you actually use, according to BKV Energy — and it could be costing you hundreds of dollars a year. Below are five potential lines on your bill to look out for and what to do if you spot them.

Also here’s how to slash your utility bills in half.

Estimated Usage

Utility companies don’t always check your meter every month. When they don’t, they estimate your usage based on previous months or seasonal patterns. That means you could be paying for energy you didn’t even use (especially if your habits have changed recently, like working fewer hours at home or using less air conditioning).

Here’s how to know if you’re being billed based on an estimate:

• Your bill says EST or Estimated reading next to your usage
• You haven’t seen anyone come check your meter in a while
• Your usage looks suspiciously high compared to last month

If this applies to you, you’d want to call your provider and request a real meter reading. Some companies let you submit your own via photo or their mobile app. If they’ve been overestimating, you may be entitled to a credit or adjustment.

Customer Charges 

Most utility companies charge you a base fee just to stay connected. It’s often labeled as a customer charge or basic service fee. They typically cost anywhere from $10 to $30 per month. 

Unfortunately, these charges are often built into your utility’s pricing structure. But if you’re on a tight budget or low-income, you may qualify for discounts or assistance programs that waive some of those fees. 

Fuel Cost Adjustments

Fuel cost adjustments are charges on your utility bill that accounts for the fluctuating fuel costs of energy generation. They can fluctuate monthly and sometimes go up without warning. Generally, you have little control over them and they can sometimes be 20% or more of your total bill.

Though there’s really not much you could do to negotiate down these prices, you could try asking if your provider offers a fixed-rate plan or levelized billing that makes these charges more predictable.

Minimum Usage Fees

Some utility bills might include a minimum usage fee or low usage adjustment, which means they’re charging you extra for not hitting a certain usage threshold. To fix this, ask your provider if they can switch you to a different rate plan that doesn’t include minimums.

Infrastructure Recovery Charges

After a major storm or grid upgrade, some providers might add temporary surcharges to help them cover costs, according to Integrity Energy. They’re typically a fixed charge that’s not based on your utility consumption. You’ll typically see this as a storm recovery fee or grid maintenance charge. If you notice charges like these appear on your utility bill, look up the charge on your provider’s website to see when it was added and how long it’s expected to last. 

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