What is a usage charge?
Usage charges are listed on your energy bill in cents per kilowatt-hour (c/kWh) and are also known as ‘consumption charges’ or ‘variable charges’. Typical rates range between 25-45 c/kWh.
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Usage charges are listed on your energy bill in cents per kilowatt-hour (c/kWh) and are also known as ‘consumption charges’ or ‘variable charges’. Typical rates range between 25-45 c/kWh.
Supply charges vary by state, energy retailer, and energy plan, but they typically range from 80c to $1.50 per day, or between $24 and $45 a month.
The Default Market Offer is helpful for comparing deals, but it’s not the key to your lowest bill, and there are better ways to figure out how much you’ll actually pay.
To avoid high demand charges, don’t use all your energy-hungry appliances at the same time during the specified peak demand periods.
This Halloween, it’s not only the vampires lurking around the corner that you need to watch out for, but also the sneaky “energy vampires” hiding in plain sight in your home.
With a demand tariff, you’re charged based on the speed (rate) at which you use power, not the total amount used (kW instead of kWh).
With a controlled load tariff, you pay a separate cheaper rate for specific, high-energy appliances, like your hot water heater or pool pump. These appliances are hard wired and controlled by the distributor, who can use your appliance to help balance electricity supply.
With a time-of-use tariff (or variable rate), you pay different rates for electricity depending on the time of day that you use it.
With a flat rate (or single tariff), you pay the same price for electricity, no matter what time of the day you use it.
Whether you’re blasting your AC at midday or watching Netflix at midnight, you pay the same rate for every kWh you use. This is the traditional way to buy electricity.
In Australia, there are five common tariff structures: Flat tariff, time-of-use tariff, controlled load tariff, demand tariff, and wholesale tariff. By understanding and adjusting your energy usage to align with renewable generation times, you can optimise your energy costs while also minimising emissions.
Acknowledgement of Country
In the spirit of reconciliation we acknowledge the traditional custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.
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