No need to remind you that electricity prices are increasing at alarming rates and receiving an electricity bill is never a dull moment. Electricity bills contain a lot of information and it can be confusing to understand. Here are a few key terms and figure you must know to understand your bill and electricity usage:
Charges: these are the information you’re most likely focusing on. They highlight what you actually have to pay and specify the different type of tariffs and other charges for the billing period.
Variable charges or consumption charges vary depending on your usage. It is calculated on a flat rate – a single rate at any time – or on a time of use rate offer. This pricing arrangement depends on the time of the day. Peak, shoulder and off-peak rates refer to electricity prices during a specific time. Off-peak is when residential homes use less energy, at night for example. In opposition, peak time is when the electricity demand is the highest. Electricity prices are cheapest during the off-peak hour, following the law of demand and supply and encouraging people to use electricity outside busy time. Shoulder rates sit between peak and off-peak periods.
In opposition to consumption charges, supply charges, also called service charges or fixed charges, are the daily cost of supplying electricity to your house – even if you don’t use any. The total supply charges for the period are calculated by multiplying the rate by the number of days.
Average daily usage: as the name indicates, this figure, measured in kW, shows your daily average electricity use. Most of the time, to get an idea of your energy consumption, the bill also provides information about the total usage for the period and a comparison to previous periods or others in the area.
What if my electricity usage is higher than the average neighbourhood? The amount of electricity you use depends on a lot of factors including the size of your house and the number of people but also your appliances (numbers, age…), how you use them and your energy efficiency (LEDs lights, insulation for example). You can also compare your usage with this calculator.
Greenhouse gas emission: some of the electricity retailers detail your greenhouse gas emission with a graph.
Solar feed-in tariff: if you have a solar system on your roof, your bill details the amount paid for the electricity fed back to the main grid. This appears as a credit on your bill.
Controlled load tariffs Controlled load tariffs apply only if your hot water system or other high-energy usage appliances are connected to a separate meter. It offers a cheaper rate than the electricity use for the rest of your property but electricity is only be supplied for a limited time every day.
If you have any doubt or misunderstanding, contact your electricity provider.
Do you want to take control of your electricity bill? It is time to go solar! Contact Energis on 1300782 217 or via email at sales@energis.com.au.
