What does the electricity bill consist of?

Accounting for electricity bills can seem complicated. Apart from the amount which relates solely to the current energy consumption, there are other components on the invoice. The bills are divided into two main sections:

• Items related to energy sales - this is the cost of real consumption
• Electricity distribution charge - the cost of supplying energy to the consumer

In the following article, we will try to explain exactly what each item refers to. You are welcome!

Background information

At the beginning of the bill, there is usually basic customer information, such as the energy supplier's details, the customer's account number, and the billing period. This information identifies the account and the period for which the bill is issued.

Charges for the sale of electricity

The initial part of the electricity invoice relates to the actual consumption for the billing period for which the document was issued.

• Active energy charge - this is a charge which is calculated depending on the given electricity consumption during the billing period, usually the billing period is 2 months. Electricity consumption is given in kWh. To get the cost in PLN, simply multiply the rate per kWh with the amount of power consumed.
• Commercial charge - a fixed charge that is levied irrespective of consumption.

Electricity distribution data.

In the next section of the electricity invoice, we can find several items whose names may be confusing. It is worth knowing their meaning :

• Subscription fee - The cost covering the reading and inspection of the metering system.
• Fixed network charge - A fixed charge to cover the costs of maintenance of energy facilities by the distribution system operator.
• 24-hour variable network charge - The cost of distributing energy through the electricity network, depending on the amount of energy consumed.
• Quality charge - Charged according to the energy consumed, reflecting the maintenance of supply quality standards. Determined by Polskie Sieci Elektroenergetyczne SA.
• RES levy - A variable charge depending on the amount of energy consumed, related to ensuring the availability of energy from renewable sources. Effective from 1 July 2016.
• Transition charge - Cost associated with the liquidation of long-term contracts, determined by the President of the Energy Regulatory Authority.
• Cogeneration levy - Cost of supporting energy generation from high-efficiency cogeneration. Effective from 25 January 2019.
• Capacity charge - A charge for the willingness to secure the supply of electricity to ensure national energy security.

Electricity bill - how to reduce it?

Reducing electricity bills requires several strategies related to both daily habits and investment in energy-efficient technologies. Here are some effective ways:

1. Energy-efficient appliances

- Replacing old appliances: Modern domestic appliances have much lower energy consumption. It is worth paying attention to the energy class.

- LED bulbs: They are much more efficient than traditional incandescent bulbs and use less energy.

2. Energy consumption management

- Switching off devices: Switch devices off from standby mode. Even in stand-by mode, they consume energy.

- Using timers: Setting timers to switch off appliances (e.g. the boiler) can reduce power consumption.

3. Optimisation of heating and cooling

- Thermostats: Install programmable thermostats that can automatically lower the temperature when no one is home.

- Insulation: improve your home's insulation to prevent heat loss in winter and heat gain in summer.

4. Renewable energy

- Solar panels: Investing in photovoltaic panels can reduce electricity bills in the long run.

- Night tariff: check whether your electricity supplier offers cheaper energy during the night hours. You can then plan your use of energy-intensive appliances for these hours.

5. Lighting management

- Motion detectors: Installation of motion detectors in rooms that are seldom used, such as cellars or storage rooms.

- Dimmers: Using light dimmers can help to adjust brightness as required and reduce energy consumption.

6. Use of natural light

- Strategic placement of windows and curtains: use light curtains and natural light strategies to reduce the need for artificial lighting.

7. Regular maintenance

- Appliance maintenance: Regular maintenance of heating and cooling equipment ensures efficient operation and lower energy consumption.

- Checking the electrical installation: Make sure that the electrical installation in the house is in good working order.

Following the above recommendations can significantly reduce electricity bills and at the same time contribute to a more sustainable use of energy resources.