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.
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.
Wholesale tariffs (also known as ‘spot exposed tariffs’) are based on the ‘spot price’, which is the price that energy companies pay when they buy your electricity from the National Electricity Market (NEM).
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