Hidden Fees to Look Out for from Electric Companies

For many people, saving money is a top priority, especially on the electric bill. This can be difficult at times when you’re hit with unexpected hidden fees. Often, these fees are buried deep down in the fine print, where virtually no one notices them until they’re responsible for them on the bill. Here are some of the most common hidden fees from electric companies to look out for:

Late Payment Penalties

If you forget your electric bill is due and have to make a late payment, you can almost always count on there being a sizable fee on top of your bill. These can be flat-rate fees or based on a percentage of your total bill, depending on your power company. Late payment penalties can add up quickly, making an already high bill even more burdensome. Late fees can even lead to disconnection fees if payment isn’t received within a specific grace period. Soon, you may find yourself playing a perpetual game of catch-up. Always check the fine print and see how prospective power companies handle late payments before you’re caught off guard by late fees.

Low Funds Penalties

Some prepaid power companies may charge a fee for having low funds in your account. If your account balance falls below a certain figure, you may be subject to hefty low-funds penalties. These fees may also be incurred if a payment you made is rejected for one reason or another. Pay attention to power companies that have a minimum balance requirement to avoid paying low funds fees.

Disconnection and Reconnection Fees

It’s common for electric companies to charge various fees for disconnection, reconnection or even initial setup fees. Getting service connected in the first place often comes with an initial setup or connection fee. If you’ve fallen behind on payments and your power was disconnected, be prepared to pay not only a disconnection fee but an additional fee to get it turned back on. When choosing a power company, keep an eye out for possible disconnection, reconnection and initial setup fees. 

Monthly Base Fees

Believe it or not, some power companies charge a monthly fee for having service in general. It can be compared to a subscription fee. Even if you don’t use the service, or a single watt of energy in this case, you’ll still have to pay a base fee for having the service available. This is usually a flat fee associated with general account maintenance, meter upkeep and access to customer service. Not only are you paying for the power you use, but an additional monthly fee for having the service. This type of fee has often gone unnoticed by customers. 

Early Termination Fees

Many power companies have contract requirements. Of course, with contracts come more potential fees. If you decide to cancel service to go with another company or to move elsewhere, you could be charged an early termination fee. When comparing electric companies, keep contract requirements in mind and read the fine print about service cancellation. Try finding a power company with no contract requirements to avoid these types of fees.

Now that you’re aware of some of the most common fees from electric companies, you’re better equipped to choose a provider that works best for you. With Pronto Power, you can avoid all of these fees, because there are no contracts, no fine print and no surprise fees. As long as you have one penny in your account, you have service. Learn more about how prepaid electricity from Pronto Power works by visiting our website.