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What Is a Base Charge for Electricity?

Rhythm Team on Friday, June 18, 2021

Any time you are looking for an electricity plan, it’s important to read the fine print. And one of those line items you’ll come across is the base charge.

Simply put, a base charge is the monthly flat fee that appears on your electric bill from your electric provider. A base charge can range from pennies to around $10 a month, depending on which electric company you go with. Which type of electric plan you choose also dictates the fee you’ll see on your monthly bill. For example, pre-paid electricity customers often face a small daily charge that adds up to a comparable monthly cost.

Big retail electric providers across Texas make excuses that they need these base charges to make money.

Don’t buy it.

Providers can make plenty of profit from energy charges alone. It’s just smooth talking to make you feel obligated to fork over extra cash each month.

Base Charges Make the Effective Energy Rate You Pay Higher

Base charges make overall energy rates significantly higher, inflating your electric bills. For example, say you were looking for a plan that had an energy charge of 7.6 cents per kWh and a $9.95 base charge.

That base charge means that on top of the 7.6 cents per kWh:

  • At 500 kWh of energy usage, customers are charged an extra 1.99 cents per kWh ($9.95/500 kWh) 

  • At 1000 kWh of energy usage, customers are charged an extra .995 cents per kWh ($9.95/1000 kWh)

  • At 2000 kWh of use of energy usage, customers are charged an extra .4975 cents per kWh ($9.95/1000 kWh)  

The Only Fair Base Charge Is $0 

At Rhythm, we don’t charge a base fee with our Texas energy plans. We don’t charge ANY hidden fees.

  • We charge late fees if your electric bill payment is past due or if there are insufficient funds in your account.    

  • We charge fees if you leave us after your first 90 days, but before your contract is up.   

  • We pass along fees and charges without markup from your wires provider for use of the power grid.  

And instead of finding loopholes to nickel and dime our renewable energy customers, we give them Rhythm Rewards for doing the things they already do.

  • Set up Auto Pay. $5 = 500 Points

  • Enroll in eBill. $5 = 500 Points

  • Refer a friend and have them sign up. $100 = 10,000 Points

It’s just another way we are changing the energy game.

Categories: Energy Explained
Tagged: base charge, electricity, electricity base charge, energy explained, energy education, green energy, renewables

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