Why Is My Hotel Power Bill So Expensive?

If you’ve ever hosted an event at a hotel, you may have been shocked by the line item labeled “power” or “electrical services” on your final bill. In many cases, this charge can run into the thousands of dollars — even for a relatively small event. But why? How can your power bill be so high when modern audio, video, and lighting equipment consumes far less electricity than it did just a decade ago?

The truth is, these charges have very little to do with your actual electrical usage. Instead, they’re part of another hotel AV cost trap created by the in-house AV provider — not the hotel itself.

The Myth of “Expensive Power”

Today’s production equipment — LED walls, digital audio consoles, intelligent lighting, broadcast-quality video gear — is designed to be far more efficient than older technology. For example:

• The average LED fixture consumes a fraction of the power of a conventional stage light.

• Modern digital audio systems require less power while delivering higher quality.

• LED walls are dramatically more efficient than projection systems of the past.

  
  

At Texas’ average electrical rate of roughly 14¢ per kilowatt-hour, most ballroom events consume less than $100 worth of electricity for an entire day.

And here’s something to think about: Have you ever wondered what the power cost is for some of the huge concerts touring around the country, running massive LED walls, lighting rigs, and sound systems? The answer: $0. Most arenas and stadiums don’t charge to power up those rigs — because the actual electricity cost is pennies compared to what it takes to light, cool, and operate the entire venue.

So why are hotels charging clients $3,000, $5,000, or even $10,000 for power in a single ballroom?

The Truth: You’re Not Actually Paying for Power

Here’s what most clients don’t realize: you’ve never actually been billed for electricity at your event. Electricity is measured in kilowatt hours (kWh) — the same as your home utility bill. Until hotels install dedicated meters on every outlet or power source in their meeting spaces, there is no way to know how much electricity was consumed for a particular event.

And here’s the key point: hotels are not in the utilities business. That’s why you don’t see a line item for the gallons of water you used when you took a shower during your stay. In the same way, you’ll never see “electricity usage” on your hotel’s master bill.

So where do these charges come from? They are invented and enforced by the in-house AV provider. Instead of billing actual consumption, they create clever-sounding line items such as:

• “Power Drop”

• “Electrical Service”

• “Power Infrastructure”

  
  

None of these represent metered electricity usage. They are simply fees designed to look like utility costs. Unless your invoice lists the exact number of kWh used and the rate charged — just like your home energy bill — you are not paying for power. You are paying for a cleverly disguised revenue stream for the in-house AV provider, with the hotel allowing it to pass unchecked.

Why Clients Are Caught Off Guard

Hotels are very careful not to reference “power” or “electricity” directly on the master bill — because they can’t. Instead, those costs appear through the in-house AV company’s invoice, where vague terminology makes the charges look legitimate.

By the time a client sees this so-called “power bill,” they’ve already:

1. Paid a non-refundable deposit for the event space.

2. Signed off on the in-house AV company’s “rules and regulations.”

3. Built their event budget assuming electricity would be a minor expense.

   
   

At that point, it’s too late to reconsider the venue — leaving clients with no choice but to pay.

What Clients Can Do

Ask Early

Before signing your hotel contract, request the complete electrical pricing policy. Ask whether charges are based on actual metered consumption (kWh). This step can save you from unexpected costs later.

Compare With Real Usage

Ask your outside AV partner to estimate your true power draw. You’ll likely find the hotel’s “power” fees bear no resemblance to your actual needs. This information can empower you during negotiations.

Challenge Misleading Line Items

Push back on vague terms like “infrastructure” or “service.” If it’s not measured in kWh, it’s not electricity usage. Demand clarity in your billing to avoid unnecessary charges.

Our Perspective

As an independent AV company, we believe in transparent, fair billing. Electricity is measurable, predictable, and easy to invoice. The fact that in-house AV providers disguise extra fees under the label of “power” is one of the most misleading practices in the industry.

If you’ve ever looked at a hotel invoice and wondered why your “power bill” cost more than your home utility bill for an entire month, now you know: you didn’t pay for electricity — you paid for cleverly worded fees created by the in-house AV provider, with the hotel choosing to look the other way.

The Importance of Quality Equipment and Experienced Engineers

At Southern Sound & Lighting, we pride ourselves on using top-end industry-standard equipment. Our experienced engineers ensure that every event we produce is of the highest quality. We understand the nuances of event production and strive to make every experience exceptional.

When you choose us, you’re not just getting a service; you’re investing in an experience. We are committed to being the top choice for high-quality, full-service event production across the southern U.S. Our goal is to build on our long-standing reputation for excellence, making your event unforgettable.

In conclusion, understanding the intricacies of hotel power charges can save you money and stress. By being proactive and informed, you can navigate the complexities of event production with confidence. Remember, it’s not just about the equipment; it’s about the people behind it and the quality of service they provide.

Let’s make your next event exceptional together!