Delivery charges explained: why they can be surprisingly high
If you’ve ever said “I barely used any electricity—why is my bill still high?”, Delivery is often part of the answer.
Plain-language summary: Delivery pays for getting electricity to your home: local infrastructure, maintenance, and operations.
It’s often a mix of fixed and variable charges, so it won’t always shrink much when usage drops.
What delivery pays for
- Local distribution lines, poles, transformers
- Metering and billing-related infrastructure
- System operations and maintenance
- Some region-specific system costs
Why it may not fall when you use less
Much of the grid cost exists whether you use 100 kWh or 1,000 kWh. Utilities still have to maintain the same infrastructure. So delivery often includes fixed components that don’t change much month to month.
What to check when delivery seems “too big”
- Are you looking at a month with unusually low usage (making fixed charges look larger by comparison)?
- Did your rate structure (TOU/Tiered) change the usage portion, making delivery stand out more?
- Are you comparing months with different weather (and different usage patterns)?
Related: Why delivery can exceed usage charges.