Do all energy companies pay interest on your deposit?

Question

Hi! I have a question about how electric bills work. Basically, I understand that an energy company adds interest to the account monthly, and that interest is added to your deposit. But do all energy companies do this? or are there any that don’t deal with interest whatsoever- not with a deposit, or monthly, or otherwise?

Thanks!

Edit: my goal is to find an energy company that isn’t involved with interest, so I neither pay nor receive interest

In: 2

Answer 1

Yes, both to your deposit, and to any outstanding balance owing.

Interest represents the time-value of money. It quantifies general desire to have money now, rather than later.

If the company did not apply interest in this way, the account’s real value (not numerical) would change as interest rates across the economy drive the value of everyone’s money.

This would open up the company to diagreement anf liability, since interest a fundamental part of business and finance.