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Why does commercial electricity cost more than residential?
My husbands boss pulled some strings with a friend who owns a NICE commercial building to let me use an empty apartment as a studio until they can find a renter.
Was very excited, Still am, but after looking up the cost of electricity, WOW!! It's much higher than residential!
I didn't know that there was a cost difference at all until a few days ago!
The building is less than 3 miles from our house and the electricity costs nearly 6x as much!
Why is that?
Way to encourage small business and job growth :-P
businesses can't vote while consumers can. thus, the legislature has directed that residential electricity rates be lower than average cost and business rates higher.
afaik, its the same everywhere in America.
Source(s):3 years ago
Because there are a lot of poor and elderly people in this country who will supposedly starve to death and die if they cannot afford electricity. So, government regulators require utilities to provide electricity at super-cheap prices to residential customers. Commercial customers can supposedly afford the higher rates without starving.
Where I live, you pay something like 12 cents per kilowatt hour if you use less than 400 or 500 kilowatt hours per month. After 500 kilowatt hours, you pay 30 cents per kilowatt hour. The more you use, the more you pay.
How electric rates are split up are often decided on by politicians. I have lived in some areas where the big commerical users got far cheaper rates than residential customers. No doubt these are job friendly places that bend over backwards to keep industry humming. (it can work too). In your case it looks like the politicians have decided the opposite, by letting commercial customers subsidize residential. Sounds like you are stuck unless you could get the utility to switch your building's status. This could be tricky because often commercial buildings are not supposed to have people living there and you may or may not have a seperate meter anyway.by richard t - 3 years ago
Take your electric bill out to where the meters are. Check the number on your bill against the meters to determine which meter is yours. If the dial on the meter is spinning fast you may be paying for electricity that you are not using. Switch your main circuit breaker off, and check the meter again. If it's spinning at all, tell the owner that the meter is incorrect.by Mary P - 3 years ago