Electrifying Insights: Understanding High Electricity Bills

Understanding the bills before you pay them is important to ensure that you are not overcharged or incurring any penalties for not making your payments in full.

Your electricity bill like any other utility bill will have a variety of services listed that contributes to the total payment amount due by you.

The reasons for high electricity bills are clearly stated on the bill and often are broken down to show you exactly and why you are being charged with a high electricity bill.

What does Electrical Load mean?

Your electrical load refers to all the appliances and equipment that you have that uses electricity. This is the part of the circuit that consumes electricity.

The electrical load is the measure of power, and this impacts your monthly bill in two separate ways.

If you are on a demand-charge rate this will affect your bill by determining the maximum amount of electricity you need from the national grid for a single hour during the month. On the otherhand, the amount of energy needed for an electrical appliance to work is the amount of energy the appliance will consume each time and that will be added to the total of your electricity usage at the end of the month.

How to Read Your Electricity Bill

There are four standard components to an electricity bill that you will notice when you look at your bill at the end of the month.

Fixed Monthly Connection Charge

This is the basic service charge that is charged to your home for the connection that is made to your electricity.

This amount will stay the same every month as it is a fixed amount that is charged to your account.

Supply Charge

This is the amount you need to pay for the supply of your electricity and these prices can change every month depending on how much electricity you are using each month.

Delivery Supply Charge

This is your utility charge for the delivery of the electricity from the electricity grid to your home.

Taxes, Fees and other additional adjustments

This refers to the adjustments added to your bill either accredited to you or added as an additional payment you need to pay.

Reasons Why Your Electrical Bill Could Be High

Here are the potential reasons why your electricity bill is high at the end of the month.

Poor Insulation and Drafts

If there are any open spaces or cracks within your walls they could be the reason why your home is not heating up or staying warm for long after you have turned on your heaters.

You can fix these by closing up any vent space and sealing any cracks to prevent cold air from coming into your house and the hot air from escaping.

You can also avoid using heaters all the time when its cold and add layers of insulation instead to help keep your house warm. On hot days, using cool curtains and blinds can help keep the cool air in without the need for using fans or air conditioning.


The more lights you keep on the higher your electricity bill will be. You can curb the amount of lighting you need by cutting out artificial lighting and start using more natural lighting such as sunlight and or make the switch to LED lights as these lightbulbs are more energy efficient.

Phantom Loads

This can refer to appliances still being plugged in while it’s not in use and still drawing the electricity current.

These appliances can include the tv, phone charger, computer being on standby and even your printer.

Water Heater & Thermostat Settings

If your water heater is set too high it can also be the reason why your electricity bill is high at the end of the month.

Reset it to an average temperature that will still have the water hot enough when you want to use it.

If you are using a thermostat to heat your home you can turn it down on the days when you are not at home and use blankets at night to heat up while sleeping.

Inefficient Appliances

Depending how old your appliances are they could be inefficient and waste electricity instead of only using the amount of energy that is required for them to work effectively.

To lower the amount of electricity that your appliances use you can replace them for newer ones that have been designed to be energy efficient.

Other reasons why your electricity bill is high is due to:

  • The war in Ukraine
  • The pandemic
  • The weather
  • Coal
  • Inflation


Knowing how to read your electricity bill is important so that you are aware of the different charges that contribute to the total payment that you owe.

Be sure to check your appliances to ensure that they are energy efficient, remove plugs from wall sockets when not in use and turn down the thermostat when it’s not necessary.

You can also reduce your electrical load by cutting out unnecessary electricity wastage and swapping out any artificial lighting for natural ones.

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