Did you like how we did? Rate your experience!

4.5

satisfied

46 votes

How can delivery charges be higher than usage charges on utility?

I assume you mean what we in the UK would call a standing charge. For instance, my current electricity tariff is 14.31p per kWh plus 25.75p per day standing charge. The standing charge is intended to pay for the cables that supply the electricity (or pipes for gas and water) to your home, and the costs of running your account - billing, meter-reading, etc. Those costs are hardly affected by the actual consumption. If you consume 1 worth of electricity in a year, or 10,000 worth, the costs of running your account will not really vary. If you have exceedingly low usage then it is possible that those standing charges could be higher than the charge for the actual electricity/gas/water supplied. But the total bill would be very low!

100%
Loading, please wait...