Are Business Utility Bills Any Different?

As we evolve into a modern world, our needs to sustain on this planet have effectively changed. While the change was gradual from the ancient times to the medieval era, the changes have been drastic and quick post the Industrial Revolution. 

As and when new technological advancements emerged our needs also emerged. However, nothing comes without a cost. These marvelous inventions like electricity, gas, telephones, internet, etc. incur charges, which are commonly known as utility bills.

Understanding Utility Bills

In simple terms, a utility bill is an invoice of the charges incurred for using public services like electricity, telephone, internet, gas, and other similar things. The reason for these services to incur a cost is primarily to make up for the cost of infrastructure and production. 

Besides, the local government levies some taxes and miscellaneous charges to these companies that are reflected in the end users’ bill as well.

Utility bills can be broadly divided into two categories:

  • Residential Utility Bills: These bills are generated for connections in personal residences or even sometimes small businesses and are generally low in cost.
  • Business or Commercial Utility Bills: These bills are generated for connections in those establishments that maintain a huge running business like corporations, industries, etc., and are generally higher in cost.

How do commercial and residential utility bills differ?

The above definition of the two broad categories of utility bills gives a fair understanding of the basic difference between them. The primary difference between these two kinds of utility bills is the cost of the invoices generated. 

The reason for the difference in cost between these two kinds of bills is primarily because the rates of usage units are vastly different between residential and commercial consumption.

Residential use of utility is often low because the appliances are of lower wattage or the needs are limited to personal comfort, thereby incurring lesser costs. In the case of commercial utility bills, the industrial machinery needs a huge amount of power for its functioning and maintenance thereby setting up the bar of power usage at quite a higher level. 

Besides, other forms of utility like telephone or internet connections are also used more frequently than their residential counterparts thereby incurring higher rates.

Speaking of usage, a residential electric bill is quite easy to decipher because the relationship between the usage and cost is pretty straightforward. On the other hand, a commercial utility bill is quite difficult to understand.

There are many websites available, for example, Utility Bidder, which not only helps to decode the various components in a commercial utility bill but also provides services and consultation for the ways one might be able to lower their commercial utility usage and bill.

Another important difference between these two bills is the metering system, especially for electricity purposes. While both kinds of establishments use smart meters, their reading systems differ a lot. 

One of the prime examples is the half-hourly reading, where the meter notes the usage every half hour thereby providing a more accurate usage detail. Such accuracy though welcome in the industrial establishments is not required for residential purposes.