Decoding Your Energy Bill: A Simple Guide

Welcome to our guide on understanding your energy bill! Navigating the different charges and terms can be confusing, so we’re here to break it down for you.

 

Energy Charges:

The rates applied to your invoice are reflective of the energy agreement with your retailer. These rates are negotiated. These charges reflect the actual electricity consumption of your business and may vary based on your electricity usage profile, the state in which your site is located, among other factors. In this section, you may see Energy Charges Categorised as Peak, Off-Peak, and Shoulder (for NSW and ACT). Please note that the time periods may differ depending on the state where your site is located. In addition, if you have a solar arrangement that allows you to export energy back to the grid, your energy usage may be offset by this generation.

 

Environmental Charges:

These are charges associated with State and Federal environmental/Green schemes, which may differ based on the state in which the site is located. The rates are reflective of your negotiated rates with your retailer and the percentage required and advertised by each state govt jurisdiction.

  • Large-scale Renewable Energy Target (LRET ) – all states.
  • Small-scale Renewable Energy Scheme (SRES) – all states.
  • Energy Savings Scheme (ESS) – NSW only.
  • Peak Demand Reduction Scheme (PDRS) – NSW only.
  • Victorian Energy Efficiency Target (VEET) – VIC only.
  • Retailer Energy Productivity Scheme (REPS) – SA only.

 

Network Charges:

These charges are for services provided by your Distributor related to electricity delivery through the Network. They are approved by the Australian Energy Regulator (AER) and are reflected in your bill as per your Agreement. Your Distributor is responsible for the infrastructure, including poles and wires, as well as the reliability of the electricity supply in your area. The Network charges listed on your bill can vary vastly between Distributors and fall into several categories, such as Network Usage Charges, Network Fixed Charges, and, where applicable, Network Demand Charges. These charges are passed through by your retailer.

 

Other Charges:

These may include Charges not already covered in The Energy, Environmental or Network Charges Sections. Such as Market Operator Charges or Metering Charges.

Market Operator Charges: These charges are passed through to you and represent your portion of the fees payable by your retailer to the Australian energy market operator (AEMO), The manager of the national electricity market (NEM)

Metering: Metering costs are passed through to the retailer by the metering provider, these costs are either determined by a direct metering agreement that was signed with the metering provider, or at a pass-through cost.

 

Retail Time Periods – Per State: