what is fixed charge in electricity bill

A fixed charge on an electricity bill is a monthly fee that customers pay regardless of how much electricity they consume. The fixed charge is designed to recover the basic cost of electric service, independent of how much energy is used. It covers the cost of operating and maintaining electric facilities and providing customer service support. The fixed charge is not a new charge or cost for providing electricity service to customers, and utilities will not earn any additional profit from it. The energy charge, on the other hand, is the purchase price for the energy customers use. The fixed charge is designed so that each customer is paying a fair share of the cost to access electric service, regardless of how much energy they use.