Term: Dual Billing

Dual Billing

Dual billing is when the utility company and the energy supplier each bill the customer separately each month.

How It Works

The utility company is responsible for transmitting electricity across power lines and distributing it to each customer. The energy supplier sets the rate and offers various plans in order to attract customers. These two entities work closely to ensure reliable energy and excellent customer service. To do so they need systems to ensure their customer’s data can be effortlessly shared. There are several ways they work together to achieve these goals.

Types of Billing

Supplier Consolidated Billing:  The local utility company comes out and reads the meter. They send the meter reading indicating the amount of electricity used along with their charges for transmission and distribution of the energy to the supplier. The supplier then consolidates the utility’s charges with their own charges for the energy and sends the customer one bill. The customer then pays the supplier who then pays the utility.

 

Utility Consolidated Billing: The utility reads the meter and sends the information to the supplier. The supplier then calculates their charges and returns that information back to the utility. The utility then bills the customer for both their transmission and distribution charges as well as the supplier’s charges on one bill. The customer pays the utility and then the utility pays the supplier. 

 

Dual Billing: Both the utility and the energy supplier present the customer with two separate bills reflecting the services they performed on the customer’s behalf.

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