Lumo Energia

What are your total electricity costs?

What are your total electricity costs?
When the electricity bill comes, do you just pay it without further reflection? Is it only important for you that the light comes on when you press the switch and that the oven gets hot when needed? Regardless, it is smart to check the electricity bill when it arrives and pay attention to what it is you are paying for and what fees are included in your total electricity costs. A conscious consumer can influence his electricity bill, as well as his total electricity cost.
 

Electricity bill vs total electricity costs

What is the difference between talking about electricity bills and total electricity costs? The electricity company invoices you for the electricity you use at home, while the electricity network company invoices you for the transmission of electricity. It is good to remember that these together make up your total electricity costs. In other words, the electricity company's electricity bill only forms one part of your total electricity costs.

Your total electricity costs consist of these parts

Who charges what?

The electricity company's electricity bill contains

The electricity network company's invoice usually contains

Electricity price

The price for the electricity you use, is stated in cents per kilowatt hour, c / kWh. How much you pay for your electricity depends on what kind of electricity contract you have. You can buy your electricity at a fixed or variable kWh price.

Usually you also pay a monthly basic fee for your electricity contract. The basic fee varies according to the electricity company but is usually a few euros up to five euros.

You can choose the electricity company yourself and subject your electricity contract to competition to get cheaper electricity. How much you pay for your electricity each month depends on both your electricity price and your own consumption. Logically meaning that the more you use, the larger the electricity bill. If you want to reduce your electricity bill, think about how you can save energy or reduce your consumption.

Transmission price

Electricity is transferred from power plants (production facilities) to you via the electricity grid. This is called electricity transmission.

The transmission of electricity is always the responsibility of the local network company, which is determined by where you live. It is simply put: the network company owns the cables that transmit or lead the electricity to your home. You can only change network companies by moving to another area with another network company. A network company can’t be subjected to competition.

The network company determines the price of electricity transmission in its area. The transfer price consists of a kilowatt-hour price and a monthly fee. See a more detailed price list on your network company's website.

The transmission price is often a hot topic. The transmission fee is used to cover not only electricity transmission, but also for monitoring, maintaining and repairing the power lines and renewing them when and where needed so that there will be no interruption in the power transmission. The network company also e.g. fixes damage and clears up debris on and around the power lines after a storm. In addition, the network company also measures your energy consumption, and provides metering data to electricity companies, i.e. your electricity supplier.

Note! You also pay for the transmission according to kilowatt hours used. If you want a lower transmission cost, it is worth trying to reduce your electricity consumption.

Taxes

The electricity company's electricity bill also includes statutory taxes. You pay 24% VAT on electricity. In general, VAT is included in the electricity price quoted by the electricity seller.

VAT is also paid on electricity transmission. In addition to VAT, the network company also invoices the energy tax, which consists of excise tax and a fee to the National Emergency Supply Agency.

 

What else affects my total electricity cost?

In addition to the electricity price and a monthly fee, transmission fees and energy tax, your total electricity costs will be affected by any additional services. Additional services include e.g. the right to exchange, quarterly billing and fossil-free energy source, such as EKOenergy.

If you have low consumption, it is worth checking if you can find an electricity contract without a monthly fee or with a lower monthly fee, because this can quickly make up a large proportion of your electricity bill.

 

Why do I get two electricity bills?

The electricity supplier bills you for your electricity consumption on its own invoice, while the network company in turn bills you for the electricity transmission on its own bill. If you buy your electricity from the same company that transfers the electricity, you usually only get one invoice covering these costs.

Do you have questions about the electricity bill and invoicing? Check out our page Electricity bill and payment and our Frequently Asked Questions.

 

How can I affect my own electricity bill?

1) Choose an electricity plan that best suits your home and life situation

Although e.g. electricity at market price (a variable rate) is not always the best choice for a house with electric heating, it can be a good alternative if you have the opportunity to steer and optimize your electricity consumption to the cheaper hours. Börsel is also suitable for lower consumption and in smaller apartments. With less consumption, the fluctuations in the electricity market do not usually be so great in the electricity bill.

2) Reduce your energy use and save energy

Use less electricity, and you will get both a smaller electricity bill and a transmission bill.

Electricity always at the current price

In the Tuntispot-plan, the electricity price varies every hour according to the prices on the Nord Pool power exchange. The electricity plan is suitable for small apartments as well as for you who are interested in keeping track of electricity prices.

  • Hourly variable kWh price
  • Save by optimizing your electricity consumption to the most affordable hours
  • Margin 1.25 c/kWh

FAQ

How do I read my electricity bill and what does it contain?

The invoice shows the following information: invoice number, due date and reference as well as your own contact information and customer number.

On the invoice you will also find the address of the facility and information about the electricity contract, such as the name of the contract, its period of validity and method of invoicing.

It also shows how much electricity you have consumed (kWh) and during which period the consumption has been measured. The unit price tells you what you pay for your electricity.

The invoice also states exactly how much VAT is reported and the total amount excluding VAT.

Note! The bill shows the actual electricity consumption, not the meter reading.

How often do I get an electricity bill?

Electricity is billed after each month in arrears, unless otherwise agreed. Actual consumption is determined on the basis of the network company's measurement data.

As an additional service, you can also choose to be billed every three months, for an additional fee of €3.40/month.

Note. We will not send an invoice to customers if the total amount is less than five euros. With low electricity consumption, for example in a summer cottage destination, it may happen that you will not get a bill for a long time. The amount to be invoiced will be transferred to the next invoice, and the invoice will only be sent when the amount to be invoiced is more than five euros.

Why do I get two electricity bills?

The electricity company sends you an invoice for your electricity consumption, whilst the network company, send you an invoice for the electricity transmission.

What billing methods are available?

You can choose to receive your invoice as an e-invoice directly to your online bank, by e-mail or as a paper invoice. You can enter into an e-invoice agreement in your online bank after receiving your first invoice from us.

All billing methods are free of charge. We send an electricity bill every month.

What things affect the price of electricity?

The price of electricity is affected by supply and demand, as well as many other factors such as weather and wind, water availability, disruptions in nuclear power generation, industrial conditions, fuel prices, demand abroad and exchange rates. Electricity prices are also affected by developments in the financial markets and the political situation. In the winter months, electricity consumption and electricity prices usually rise across the country, while in the summer they fall.

The price that an electricity user ultimately pays for his electricity consists of three parts: the price of the electricity network (electricity transmission) and the electricity tax invoiced by the electricity network company, and the price of electricity itself, which is invoiced by the electricity company.

How do I save energy?
  • Adjust the temperature in your home. Already one-degree cooler can reduce energy consumption by 5%.
  • Turn off the lights when leaving the room. Don’t keep appliances in standby mode.
  • Set the correct temperature in both the fridge (+4) and freezer (-18). Remember to vacuum the back of the appliances and defreeze the freezer once a year.
  • Don’t wash only half-full machines but fill the washing machine completely and wash at lower temperatures. Hang dry instead of tumble drying if you can.
  • Choose energy-efficient lighting, such as LED lights rather than halogen.
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Customer service

We value our customers and our aim is to provide excellent customer service. Contact us if you need help with signing or choosing a contract, or if you would simply like to switch to a new, more affordable electricity contract.

Check our FAQ for quick answers

Our customer service is open on weekdays from 09.00 to 18.00.

You can also contact us outside openings hours via email at [email protected]

Our customer service hotline charges are: Local network rate

Weekdays Mon–Fri 9–18
09 4272 0444
You can also find answers on our FAQ page.