State of Play - September 3, 2019

It pays to understand your energy bill

Electricity usage charge makes up a big portion of your bill, depending on how you use your electricity.  It’s a good idea to understand how your usage is calculated, this might help you limit your energy usage and save money on your bills.  Home Now is here to help you and your clients.

What is an electricity usage charge?
An electricity usage charge is also known as a ‘consumption charge’ or ‘variable charge’, meaning this is the amount you pay for each unit cost of electricity usage. It is listed as cents per kilowatt hour(c/kWh) on your bill. Most retailers charge between 25 and 40 c/kWh.

Where to find the usage charge on the bill?
This is usually on the second page or on the back of your bill. It is shown as cents per kilowatt hour(c/kWh).

Why is there more than one electricity usage charge on some bills?
On some bills, there are more than one usage charge, this shows all applicable tariffs and broken down into different time periods. The usage charges can be calculated in different ways, depending on your plan.

Single rate tariff is the main tariff but is also known as anytime, peak, flat or standard rate.

Time of use tariff includes peak, shoulder and off-peak rates.

Controlled load tariffs are for appliances with separate metered tariffs for cheaper rates, eg swimming pools. This might be listed as off-peak charge.

When do electricity usage rates change?
Generally, usage and rates change every 12 months in July in most areas except for Victoria which happens every January. For those under a standard contract, their electricity charges won’t increase more than once every 12 months. While those on a market offer, retailers can change their rates anytime provided they are given prior notice.

How can I get the best deal?
The electricity usage charges vary from every retailer, from state to state and even within different parts of the same state.

If you’re looking for the best energy provider you should consider rates, contract terms, discounts & perks. Understanding your bill can help you decide which energy provider to choose. 

Loan Market Home Now can compare the best electricity and gas offers in your area, simply  click here.