What is a Fixed Monthly Charge and why must I pay it?
- Hits: 500
The fixed charge (service fee) is part of a customer’s electricity bill that is charged on a monthly basis. The fixed charge is intended to allow for the recovery of the costs associated with the fixed or permanent investments (e.g. poles, cables, transformers etc.) needed to generate, transmit and distribute electricity. The fixed charge is a universal best practice and is not peculiar to a particular country. It is to be borne by electricity customers at all times, once they are connected to supply. It is not tied to consumption.