https://utilityexplained.com/tags/deregulated-markets/Recent content in Deregulated Markets on Utility ExplainedHugoen-usThu, 28 May 2026 00:00:00 +0000https://utilityexplained.com/blog/24-delivery-charge-vs-supply-charge-utility-bill/Thu, 28 May 2026 00:00:00 +0000https://utilityexplained.com/blog/24-delivery-charge-vs-supply-charge-utility-bill/<p>Open your electric bill and you will likely see two separate charge sections — one labeled &ldquo;Delivery&rdquo; and another labeled &ldquo;Supply&rdquo; (or &ldquo;Generation&rdquo;). Together, they account for roughly 70% to 80% of your total bill. Understanding what each one covers is the single most important step toward making sense of your utility costs, especially if you live in a deregulated market where you can shop for supply rates.</p> <img src="https://images.unsplash.com/photo-1507003211169-0a1dd7228f2d?w=1200&h=630&fit=crop&q=80" alt="Split view of power transmission lines and a light switch representing delivery and supply" width="1200" height="630" loading="lazy" /> <h2 id="table-of-contents">Table of Contents</h2> <ul> <li><a href="#what-is-the-delivery-charge-on-a-utility-bill">What Is the Delivery Charge on a Utility Bill?</a></li> <li><a href="#what-is-the-supply-charge-on-a-utility-bill">What Is the Supply Charge on a Utility Bill?</a></li> <li><a href="#how-much-of-your-bill-is-delivery-vs-supply">How Much of Your Bill Is Delivery vs. Supply?</a></li> <li><a href="#delivery-charges-broken-down">Delivery Charges Broken Down</a></li> <li><a href="#supply-charges-broken-down">Supply Charges Broken Down</a></li> <li><a href="#regulated-markets-one-utility-two-functions">Regulated Markets: One Utility, Two Functions</a></li> <li><a href="#deregulated-markets-where-you-can-shop-for-supply">Deregulated Markets: Where You Can Shop for Supply</a></li> <li><a href="#can-you-reduce-your-delivery-charge">Can You Reduce Your Delivery Charge?</a></li> <li><a href="#can-you-reduce-your-supply-charge">Can You Reduce Your Supply Charge?</a></li> <li><a href="#delivery-and-supply-on-natural-gas-bills">Delivery and Supply on Natural Gas Bills</a></li> <li><a href="#frequently-asked-questions">Frequently Asked Questions</a></li> </ul> <h2 id="what-is-the-delivery-charge-on-a-utility-bill">What Is the Delivery Charge on a Utility Bill?</h2> <p>The delivery charge covers the cost of transporting electricity from the power plant (or regional transmission hub) to your home through the utility&rsquo;s infrastructure. This includes the high-voltage transmission lines, local distribution poles and wires, transformers, substations, the service drop to your house, and the meter itself.</p>