Common misconceptions about fixed charges and markups
Fixed charges and per-kWh markups often lead to confusion. Here we debunk a few common misconceptions.
Myth 1: “Fixed charges are pure profit for the supplier”
In reality, suppliers use these to pay for staff, IT systems, licences, payment processing, and compliance. Without a fixed base it’s hard to offer a stable service.
Myth 2: “Markups are hidden costs”
In Leafy Energy, markups are explicitly shown in the tariff breakdown. You can see exactly which part is market price and which part is markup.
Myth 3: “Dynamic tariffs mean you don’t need fixed charges anymore”
“Dynamic” describes how usage-based costs move, not whether you still need a stable infrastructure. That infrastructure still requires fixed funding.
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