Supply and usage charges.

The supply charge

A fixed amount for every day you're connected, in cents per day. It applies whether you use a lot of power or none at all. It helps cover the cost of the network that delivers your power and keeping you connected.

Usage charges

A price for each unit of power you use, in cents per kilowatt-hour (kWh). Depending on your plan there may be one rate, rates for different times of day, or rates that change after a set amount of usage.

Why both matter

A plan with a low usage rate can carry a high supply charge, and the other way round. Which is cheaper depends on how much you use:

• Low usage, such as a small apartment or a home with lots of solar: the supply charge is a bigger share of the bill, so a low daily charge matters more.
• High usage, such as a large family or electric heating: the usage rate matters more.

That's why comparing on rates alone can mislead. The only fair comparison is each plan's full cost on your usage, which is what the Wizard works out. How we compare plans.

Why prices differ by area

Network costs differ between distribution areas, so the same retailer's plan can cost different amounts in different places. Your bill shows your distributor, which tells you which prices apply to you.

General information, not personal financial advice. Plan rules differ by state and retailer: check a plan's own fact sheet before you sign up.