May 17th, 2008
Most utility companies charge a fixed amount per month to offset the fixed costs and a variable amount depending on the consumption of a particular consumer. For most physical goods, large volume buyers usually get a better per unit price, but this may not be true for all utility products.
For scarce resources like electricity and water in some countries, customers who use less units have to pay a lower per unit rate, while consumers whose consumption is above a certain level have to pay a higher per unit rate. This is to discourage wastage. A lower rate is also charged for residential premises compared to that charged for offices and shops (commercial services).
Before a utility connection is provided, a deposit has to be paid by the consumer to the utility company. This minimizes the loss the utility may incur if the billing meter and other equipment they provide is damaged by the customer. The deposit amount is also adjusted against the outstanding customer bill amount in case of default.
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May 17th, 2008
Most utility companies like Electricity, Phone , Internet, Cable TV, Water supply companies bill their customers periodically depending on the resources consumed by the company. The billing period can be monthly or bimonthly depending on the bill amount.
If the bill amount is less than $5, the bill payment usually has to be made once in two months, else the consumer receives a bill once a month. If the amount to be paid is very small like residential property tax bills, the payment is collected only once or twice a year.
Billing data collection, compilation, bill printing, dispatch and collection of payment involve some amount of overhead, so billing frequency increases as the amount to be paid increases. The bills specify a due date before which the bill has to be paid. If the payment is delayed beyond the due date, a penalty has to be paid which is usually added to the next bill due. Some times, due to delays in bill distribution, the consumer may receive the bill after the due date, but still has to pay the penalty.
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May 12th, 2008
Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!
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