Understanding New Jersey's Surcharge Payment System
What a New Jersey surcharge is and why it appears on your bill
A surcharge in New Jersey is an extra charge added to your utility, phone, or other service bill by the provider or by the state. It is not part of your base service cost — it sits on top of it. Surcharges fund specific programs: energy efficiency rebates, public utility commission oversight, emergency response systems, or infrastructure upgrades. Your bill lists each surcharge separately so you can see exactly what you are paying for.
The most common surcharges appear on electric and gas bills. New Jersey utilities add charges for the Clean Energy Program, the Societal Benefits Charge, and the Reliability and Security Surcharge. Phone bills often carry a surcharge for the Telecommunications Relay Service. Water bills may include a surcharge for water infrastructure or stormwater management. The amount varies by utility, by service type, and sometimes by your usage level.
You cannot opt out of a surcharge — it is a mandatory charge set by state regulation or utility commission order. However, you can understand what each one funds, and you can challenge a surcharge on your bill if you believe it was calculated incorrectly or applied in error.
Key Takeaways
- Surcharges are separate line items on your bill that fund state programs or utility infrastructure, and they are mandatory — you cannot remove them.
- Common New Jersey surcharges include the Clean Energy Program charge, Societal Benefits Charge, and Reliability and Security Surcharge on utility bills.
- If you dispute a surcharge amount, contact your utility's billing department with your account number and the specific charge in question.
- Low-income households may be exempt from certain surcharges or may pay a reduced rate through programs like the Universal Service Fund.
How to pay a surcharge on your bill
You pay a surcharge the same way you pay the rest of your bill — it is included in your total amount due. When you receive your bill, the surcharge appears as a line item with a dollar amount. Your total due includes the base service charge, any usage charges, taxes, and all surcharges combined.
If you pay online through your utility's website or app, the surcharge is already factored into the payment amount you see. If you pay by mail, check, automatic bank transfer (ACH), or phone, the surcharge is part of the total you remit. You do not make a separate payment for the surcharge — it is one bill with one due date.
Set up automatic payments through your utility if you want to avoid late fees on the full amount, including surcharges. Most New Jersey utilities allow you to enroll in autopay through their website or by calling customer service. The payment will deduct from your bank account on your due date each month.
Disputing a surcharge on your bill
If you believe a surcharge is wrong — either the amount, the calculation, or that it should not be on your bill at all — contact your utility's billing department. Have your account number and bill ready. Explain which surcharge you are questioning and why. The utility will review the charge against the tariff (the official rate schedule filed with the New Jersey Board of Public Utilities) and tell you whether it is correct.
If the utility confirms the surcharge is correct but you still disagree, you can file a complaint with the New Jersey Board of Public Utilities (BPU). You can submit a complaint online at nj.gov/bpu or call their consumer hotline. The BPU investigates billing disputes and can order a utility to adjust your bill if an error is found. This process usually takes several weeks.
Keep copies of your bills and any correspondence with the utility. If the dispute involves a large amount or affects multiple billing cycles, document everything. The BPU uses this record to investigate.
Surcharge exemptions and reduced rates for low-income households
New Jersey offers reduced surcharge rates or exemptions for households that meet income thresholds. The Universal Service Fund (USF) program reduces or waives certain surcharges for low-income electric and gas customers. To be considered, your household income must fall below 250 percent of the federal poverty level (the exact threshold varies by utility and year).
If you are enrolled in LIHEAP (Low Income Home Energy Assistance Program) or receive other state assistance, you may already be registered with your utility as a low-income customer. Ask your utility whether you are enrolled in the USF program. If not, you can request enrollment by calling your utility's customer service line or visiting their website. You will need to provide proof of income — recent tax returns, pay stubs, or a letter from a social service agency.
Some surcharges, such as the Societal Benefits Charge, may be fully waived for low-income households. Others are reduced but not eliminated. The reduction appears on your bill as a credit or as a lower surcharge amount. Once you are enrolled, the reduced rate applies automatically each month.
What happens if you do not pay a surcharge
A surcharge is part of your total bill. If you do not pay it, you are not paying your full bill, and your account falls behind. Your utility will charge a late fee, typically a percentage of the unpaid balance. After 30 to 60 days of non-payment (depending on your utility's policy), the utility may issue a shut-off notice.
If you receive a shut-off notice, you have a window — usually 10 to 14 days — to pay the full amount due or contact the utility to arrange a payment plan. If you do not act, the utility can disconnect your service. Reconnection requires payment of the full balance plus a reconnection fee.
If you cannot pay the full bill including the surcharge, contact your utility immediately. Many utilities offer payment plans that spread the cost over several months. Some also have hardship programs that defer payment or reduce the amount due for customers facing financial hardship. The sooner you reach out, the more options you have.
Common New Jersey surcharges explained
The Clean Energy Program Surcharge funds rebates for energy-efficient appliances, weatherization, and solar installation. It appears on electric and gas bills from most New Jersey utilities. The amount is usually small — a few dollars per month — but varies by utility and by your usage.
The Societal Benefits Charge supports low-income energy assistance, workforce development, and energy research. It is mandatory on most electric bills. Low-income households may be exempt or pay a reduced rate.
The Reliability and Security Surcharge funds grid upgrades and cybersecurity measures to prevent outages. It appears on electric bills and has grown in recent years as utilities invest in infrastructure.
The Telecommunications Relay Service Surcharge appears on phone bills and funds services for people who are deaf or hard of hearing. It is a small per-line charge.
Your bill may also include surcharges for stormwater management (on water bills), nuclear decommissioning (on electric bills from utilities that operate nuclear plants), or other state-mandated programs. Check your bill's detail section to see the full list and amounts.
How to read the surcharge section of your bill
Open your utility bill and look for a section labeled "Surcharges," "Adjustments," or "Other Charges." Each surcharge is listed with a name and a dollar amount. Some bills group all surcharges together; others scatter them throughout the document. Your bill should also include a brief description of what each surcharge funds — if not, you can find this information on your utility's website or by calling customer service.
Add up all the surcharge amounts and compare them to the previous month's bill. Surcharges can change slightly from month to month if they are based on usage or if the utility adjusts the rate. A large jump in surcharges (more than 10 to 15 percent) warrants a call to the utility to confirm the charges are correct.
If your bill does not clearly label surcharges or if you cannot find them, contact your utility's billing department. They can explain each charge and send you a detailed breakdown. You have the right to understand what you are paying for.
Frequently Asked Questions
Can I remove a surcharge from my bill?
No. Surcharges are set by state law or utility commission order and are mandatory. You cannot opt out. However, if you are low-income, you may be exempt from certain surcharges or pay a reduced rate through the Universal Service Fund program.
Why did my surcharge amount change?
Surcharge amounts can change for several reasons: the utility adjusted the rate (approved by the BPU), your usage changed, or the surcharge calculation method changed. Check your bill's detail section or call your utility to ask why a specific surcharge increased or decreased.
What if I cannot pay the surcharge as part of my bill?
Contact your utility immediately to discuss a payment plan. Most utilities allow you to spread the cost over several months. If you are facing hardship, ask about hardship programs that may defer or reduce the amount due.
Do all New Jersey utilities charge the same surcharges?
No. Surcharges vary by utility and by service type. An electric utility may charge different surcharges than a gas utility. Check your specific utility's tariff on the BPU website to see which surcharges apply to your account.
How do I know if a surcharge on my bill is a mistake?
Compare your current bill to previous months. If a surcharge appears that was not there before, or if the amount is significantly higher, contact your utility's billing department. Have your account number and bill ready. The utility will verify the charge against the official tariff.