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Electric bill term

Supply Charge Explained

The cost of the electricity itself, separate from delivery in many deregulated or retail choice markets. Learn where it appears on an electric bill, whether it is controllable, and what to check first.

Electric bill

$226

Energy$142
Delivery$48.00
Fees$36.00

All-in rate

$0.246 per kWh

Best next check

Cooling hours

Plain-English definition

The cost of the electricity itself, separate from delivery in many deregulated or retail choice markets.

On a real bill, this may appear as Supply, Generation supply, Electric supplier charge, Energy supply. The exact label depends on the utility, supplier, regulator, and rate plan.

What to check: Check whether the supply rate changed, expired, or differs from a retail plan you selected, then compare it with delivery charges that may remain fixed.

Supply vs delivery

Electric supply charge vs delivery charge

The supply charge is the cost of electricity generation or the retail energy plan. The delivery charge is the utility network side. A bill can rise because supply changed, delivery changed, or both moved at the same time.

Compare bills

Supply charge

Usually follows kWh times the supply or generation rate.

Delivery charge

Can include kWh-based distribution plus fixed utility charges.

Retail choice

A third-party supplier may change supply while delivery remains with the utility.

Best next check

Compare both rates and the all-in dollars per kWh.

Related electric bill terms

FAQ

Short answers for search visitors and bill-checking moments.

What does supply charge mean on an electric bill?

The cost of the electricity itself, separate from delivery in many deregulated or retail choice markets.

Can I control supply charge?

Supply charge is partly controllable. Check whether the supply rate changed, expired, or differs from a retail plan you selected, then compare it with delivery charges that may remain fixed.

What should I compare first?

Compare kWh usage, billing days, and the all-in cost per kWh before deciding which line item caused the increase.