Report: Nearly Half of All Americans Claim They Pay Hidden Utility Fees

A shocking number of Americans are reportedly being charged hidden fees by gas and electric companies.

A Consumer Reports survey showed that out of 2,057 adults, 41 percent had experienced hidden fees on a gas or electric bill within the past two years. The problem may affect individuals in the Northeastern part of the country more than other areas. The survey revealed that 48 percent of individuals from the Northeast region experienced hidden or unexpected fees while only 39 percent of individuals from the rest of the country experienced these hidden fees.

In 2018, state energy commissions rejected a reported 38 percent of fixed fee hike proposals, an increase from 25 percent in 2017.

Unfortunately, many regions have limited options for energy service providers, meaning that consumers need to rely on regulatory bodies to reject company requests to increase fees and costs. To encourage commissions to rule in favor of consumers, Consumer Reports recommends individuals contact these commissions, sign petitions, and attend public hearings to advocate for themselves. Feedback from consumers has reportedly helped curb drastic energy cost increases in the past.

“Utilities may think they can get away with raising customer fees,” says Baker-Branstetter, manager for Consumer Reports’ Cars and Energy Policy, “but they won’t if you speak up.”

Hidden Utility Fees In Household Bills

Hidden utility fees may pop up in a variety of ways that are entirely dependent on a household’s energy source and service company. In some cases, unexpected charges are written into the fine print of a utility’s contract, making companies technically within its rights to charge these fees. However, if consumers are not sufficiently warned, these fees can still be considered “hidden.”

One source of hidden fees may be meter charges. Meters with high base charges may lead to consumers paying more than necessary. Households that are on a low capacity plan when they really need a larger plan may also lead to monthly charges. Keeping service to decommissioned buildings may also result in unnecessary utility fees, according to assetworks.com. Other usage or billing practices may result in unnecessary meter charges.

Holding Utility Companies Accountable

When utility companies sneak hidden fees into bills, consumers and consumer advocates may be able to take action. In Alabama, the Southern Environmental Law Center filed a complaint with the Alabama Public Service Commission. The group claimed that electric company Alabama Power wrongfully charges its solar power customers with hidden fees, according to a National Public Radio (NPR) report.

Solar power customers are allegedly charged for backup power that covers any lapse in solar coverage while also paying a fee for this backup coverage. Consumers claim they are penalized for their sustainable energy choices with additional hidden utility fees.

“Solar is a real disruptor because it allows people to create their own energy, and so the utilities typically get very nervous about that,” Southern Environmental Law Center’s Keith Johnston told NPR. “One way they can thwart that is to increase the cost to have one of those systems on your home.”

Join a Free Hidden Fee Lawsuit Investigation

If you believe that you were charged unexpected hidden fees by a merchant or service provider, you may qualify to join this hidden charge class action lawsuit investigation.

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This article is not legal advice. It is presented
for informational purposes only.