What is idle billing?
Idle charges are applied when services have been disconnected by the distributor at site and no power is being used.
These charges are used to maintain the integrity of the existing infrastructure on the property.
Who can this impact?
Idle billing is more common for rural consumers and those with seasonal properties. Not all distribution companies will have idle billing.
Consumers can check with their distribution company to see if their property will be subject to idle billing after the electricity is disconnected.
Why does idle billing exist?
Idle charges exist to maintain existing infrastructure on properties. This is to ensure power can be restored to the site if necessary and to make sure neighboring properties and infrastructure are not negatively impacted.
How does idle billing work? How much is it?
The rates for idle charges will depend on the distributor and where the property is located. Idle charges often take several months to start billing. The first bill for idle charges will likely be higher than a single month of idle billing.
If consumers are thinking about disconnecting their services for a specific period of time, they should compare the cost of idle charges and reconnection fees against the cost of turning off breakers and paying the non-energy costs on a monthly basis.
How can idle billing be avoided?
If consumers don't want to pay for idle charges, they can request the distributor to salvage the equipment at the property. This means the distributor will physically remove the meter, power poles and power lines and all related infrastructure. The property will no longer have access to the power grid.
Site salvaging is a lengthy and costly process and the cost to reinstall the power lines, poles and meters is a significant investment. Consumers should talk to their distributor about all the related costs before they decide to salvage the equipment! Salvaging a site is a big decision and is usually only done when consumers have no plans to use electricity on that property in the future.
