'I Was Shocked': Utility Companies Continue To Charge Businesses For Fees Even As They Remain Closed

LOS ANGELES (CBSLA) — Some business owners have been shocked by the utility bills they have received while remaining closed during the coronavirus pandemic.

When the pandemic hit and Ofir Anchel was forced to close his three tanning salons, he did everything in his power to cut down on his costs.

"I went ahead and turned off any device that consumes electricity. From the air conditioning to computers, to lights, obviously the tanning beds aren't functioning right now," said Anchel.

When his first Department of Water and Power bill arrived after the closure, Anchel said he was in shock.

The bill was just under $1,500 for the month of April and about $900 of that was not for actual usage.

The bulk of it was for what DWP calls a "facility charge." It's essentially a fee that businesses must pay to have access to power.

"The reason the charge stays on the bill because this is a grid charge," said DWP's Sharon Grove. "This is the charge that each customer pays to support that grid capacity."

Anchel said he doesn't mind paying the facility charge when he can actually operate his business. As a tanning salon, he currently has had zero revenue coming in.

"When you ask me to close my doors, and I obey your orders being a responsible citizen and business owner, it's hard for me to deal with additional fees that are not associated with my consumption," said Anchel.

It's not just the DWP that charges business customers these fees. At Anchel's Glendale location, he has to pay Glendale Water and Power more than $900 in "demand charges," which are also not a part of his usage.

"I am not expecting anything for free, I don' want a bailout, I don't want a freebie. Just charge me for what I consume," said Anchel.

The DWP has told Anchel he could set up a payment plan, or he could cancel the service.

However, he worries if he does that, he won't be able to get up and running quickly when he is allowed to reopen.

Glendale Water and Power reached out to Anchel within hours of being contacted by CBSLA's Kristine Lazar.

According to Anchel, they have agreed to reduce his bill down from nearly $1,500 to less than $250 until he can reopen.