There are several components to the electricity supply chain. The four main buckets are electricity generation, transmission, and distribution, before arriving at your home ready for you to use when you need it.
Your electricity bill includes a cost breakdown, and while they don’t all look exactly the same, here are examples of the common charges you see on your bill.
Example pricing based on AGL’s standing offer (including GST). Retail rates from 1 July 2024.
kWh = A unit of energy equivalent to one kilowatt (1 kW) of power expended for one hour. It is the standard unit of measurement for electricity consumption.
Your bill will typically show one of two energy usage charge types:
Flat rate
OR
Peak/Off Peak
Flat Rate
Your electricity use is charged at a flat rate per unit of electricity used.
Charge | Units | Rate per Unit | Amount |
---|---|---|---|
Flat Rate | 200kWh | $0.37 | $74.00 |
Peak Usage
You pay a higher rate for using electricity in ‘peak’ hours. Your retailer may also include a demand charge that is based on the highest amount of electricity drawn from the grid at any one time, such as using a lot of appliances all at once.
Charge | Units | Rate per Unit | Amount |
---|---|---|---|
Peak Usage | 100kWh | $0.27 | $27.00 |
Off Peak Usage
You pay a lower rate for using electricity in ‘off-peak’ hours.
Charge | Units | Rate per Unit | Amount |
---|---|---|---|
Off Peak Usage | 100kWh | $0.59 | $59.00 |
Charge | Units | Rate per Unit | Amount |
---|---|---|---|
Supply | 31 days | $1.03/per day | $31.93 |
Any unused electricity that your solar power system generates is credited to your bill.
Charge | Units | Rate per Unit | Amount |
---|---|---|---|
Solar Feed-in | 25kWh | -$0.07 | -$1.75 |
Looking at your electricity bill and knowing how to read it is the first step. Next is knowing how to effectively influence the price you are paying. The simplest way to do this is to change how and when you are using electricity. The below graph is a representation of the average household energy use - how do you think you line up? Are there areas you could look to optimise your electricity usage?
There are some simple things you can do today to make your home more energy efficient;
Unplug unused electronics like extra fridges
Turn off any unused lights
Use natural lighting during the day
Choose the cold setting on your washing machine
Change your usage pattern.
For more tips on optimising your energy usage, check out Part 2 - Optimising your electricity usage.
If you are looking for some extra information about energy, checkout these resources.