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Electricity · Basics

How to read your electricity bill

Break your bill into supply, delivery, and fees so you can calculate the only number that matters: your true effective rate.

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1 min read · Reviewed September 2026

Find your effective rate

Take the bill total and divide it by the kWh you used. That is your effective rate, fees included. It is almost always higher than the rate you were advertised — and it is the number any new plan has to beat.

The three blocks on every bill

Supply is what your retail supplier charges for the electricity. Delivery is what the utility charges to move it. Taxes and fees round out the total.

  • Supply: rate per kWh × usage, plus any base charge
  • Delivery: utility charges, regulated and not shoppable
  • Credits: bill credits only apply if you cross the usage threshold

Watch the fine print

The Electricity Facts Label shows the average price at 500, 1,000, and 2,000 kWh. If your household sits at 700 kWh, the 1,000 kWh headline rate does not describe your bill.

Questions people ask

Why is my rate higher than advertised?

Base charges, minimum-usage fees, and unmet bill-credit thresholds all raise the effective rate.

What is a minimum usage fee?

A flat charge, often $9.95, added when your monthly usage falls below a threshold such as 800 or 1,000 kWh.

Electricity is a separate ScoutRoo service from home internet. Rates shown are illustrative market averages — confirm terms on the supplier's facts label before enrolling.

Put the guide to work

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