What Are Ancillary Services on Your Energy Bill, and Why Are You Paying for Them?

Ever wonder why your energy bill is peppered with line items you might not recognize? Meet ancillary services: the behind-the-scenes operators working 24/7 to keep your electricity flowing smoothly and reliably. 

Electricity delivery isn’t as simple as flipping a switch. As soon as energy is generated, it enters a meticulously balanced system known as the power grid. The grid requires constant maintenance and backup to avoid chaos—think surges, dips, or blackouts. That’s where ancillary services come in. These services ensure reliability and support the transmission of electricity. There may be a number of charges on your bill that cover these services. They’re not the main act (that’s the actual electricity you use), but they’re the essential supporting crew that keeps everything running consistently. 

Breaking Down Ancillary Services 

So, what exactly are ancillary services? 

• Frequency Regulation: Imagine the grid as a tightrope walker; frequency regulation is the balancing pole that keeps it upright. Any sudden changes in electricity use or supply can cause frequency swings. Ancillary services step in to steady things instantly. 

• Spinning and Non-Spinning Reserves: These are the energy grid’s emergency generators, ready to jump in at a moment’s notice if a power outage occurs. “Spinning reserves” are already running and can react in seconds. “Non-spinning” can start up quickly if needed. 

• Voltage Support:  Ancillary services fine-tune the grid’s voltage, making sure your machinery isn’t damaged by inconsistent power. It delivers electricity at the correct voltage level. 

• Black Start Capability: In the rare event of a blackout, specialized resources are prepared to kickstart parts of the grid. It’s like having a designated jump-starter for your car battery, but for the whole power system. 

Why Are These Charges on My Bill? 

Here’s the catch: even if you’ve never needed an emergency backup, everyone who draws power from the grid benefits from this safety net. Grid operators charge retail electricity suppliers for these system-wide protections; that cost is passed on transparently to you as a line item, because reliability isn’t optional—it is critical infrastructure if the grid goes down. 

This means your bill isn’t just paying for the energy your business actually uses. You’re helping cover your share of the price to keep the grid responsive and ready, come what may. Without these ancillary services, the risk of widespread outages, equipment damage, and higher long-term costs would skyrocket. 

What This Means for Your Business 

At Catalyst Power®, our retail electricity plans are built for businesses like yours, giving you tools to mitigate the risks tied to unpredictable energy markets. What we offer is consistency and control. Our plan structures are designed to shield you, as much as possible, from market volatility and sudden, unexpected charges, even those stemming from ancillary service spikes. 

These services may seem like an extra cost, but they’re essential for modern energy reliability. Contact our Energy Experts today for customized support. We can help you make sense of your bill!