Reviewed: 11 August 2026 · Written by Jay Jung
An Australian electricity bill is designed to be paid, not read. The total sits at the top in large type; the numbers that explain the total are on page two in six-point grey.
This guide goes through each charge in the order it usually appears, explains what sets it, and flags the ones worth acting on. Layouts differ between retailers, but the underlying charges are standardised — every bill contains the same components under slightly different names.
Have your most recent bill open. It takes about ten minutes.
The summary box: what it does and does not tell you
The first page shows the amount due, the due date, the billing period and usually a comparison against your previous bill or the same period last year.
That year-on-year comparison is the single most useful number on page one, and it is the one people skip. A bill that rose 40% year-on-year with the same household size and the same season points at something specific — a tariff change, a new appliance, a faulty hot-water thermostat — rather than “electricity got expensive”.
What the summary box does not tell you is whether you are on a competitive rate. A bill can be lower than last quarter and still be well above what the same household would pay on a better offer.
Supply charge (also: daily charge, service to property charge)
What it is: a fixed amount per day for being connected to the network. Charged whether you use zero kilowatt-hours or a thousand.
How it is shown: cents per day × number of days in the billing period.
What sets it: your distribution network, which is determined by where you live, plus the retailer’s margin. It is not negotiable by usage.
Why it matters: for low-usage households — apartments, single occupants, holiday homes — the supply charge can be a large share of the total bill. If that is you, a plan with a lower supply charge and a slightly higher usage rate may be cheaper overall, even though it looks worse on the headline rate.
This is the reason comparing plans on cents-per-kWh alone is misleading. The supply charge is a real cost and belongs in the comparison.
Usage charges
What it is: cents per kilowatt-hour consumed.
The number of lines here tells you your tariff type:
One rate → flat tariff. All kilowatt-hours cost the same regardless of time of day.
Peak / shoulder / off-peak → time-of-use tariff. The rates and the time windows are both set by your network, and the windows differ by state — a “peak” period in one distribution area may be a shoulder period in another. Check the definitions printed on your own bill rather than assuming.
A “demand” line → demand tariff. See below; this one behaves differently from everything else.
A separate cheaper line for one appliance → controlled load. See below.
Multiply the rate by your usage and you should land on the charge shown. If it does not reconcile, there may be a rate change mid-period — many bills show two blocks when prices change on 1 July.
Controlled load (also: off-peak 1 / off-peak 2, dedicated circuit)
What it is: a separate meter register for a single high-use appliance, almost always an electric storage hot-water system, sometimes underfloor heating or a pool pump. The network controls when that circuit is energised, typically overnight.
Why the rate is low: you have given up control of when the appliance runs, which is worth something to the network.
What to check: whether you have one at all. Households with electric storage hot water and no controlled-load line on the bill are paying general usage rates for the largest single load in the house. Worth a call to the retailer.
The trade-off: if you later install solar, an overnight controlled load is the wrong choice — you want the hot-water system heating in the middle of the day using your own generation, not at 1am off the grid.
Demand charges
What it is: a charge based on your single highest period of usage — usually the highest half-hour or hour — within the billing period, measured in kW rather than kWh.
Why it exists: networks are built to handle peak load, not average load. Demand charges pass that cost to the households that create the peak.
What it means in practice: one afternoon where the air conditioner, oven, dryer and dishwasher all run at once can set a demand figure that applies to the whole bill, even if your total consumption for the quarter was modest.
What to do: stagger the big loads. Not simultaneously; sequentially. Households on demand tariffs get more from spreading appliances across the evening than from reducing total usage.
Demand tariffs are increasingly common on new connections and after smart meter installs, and many households are moved onto one without registering that it happened. If you see a kW figure on your bill, you are on one.
Solar feed-in credit
What it is: payment for electricity exported to the grid, in cents per kWh exported.
What to check: the export volume against your generation. A large gap between what your inverter says it generated and what the bill says you exported is normal and healthy — it means you self-consumed the difference, which is worth more than the feed-in rate.
Some retailers now apply time-varying feed-in rates or charge for exports during periods of grid oversupply. If there is a negative line item near your solar credit, that is what it is.
Discounts and conditional discounts
What it is: a reduction, sometimes applied only if conditions are met — pay on time, pay by direct debit, receive bills by email.
The trap: a conditional discount off a high base rate is not the same as a low rate. And a “pay on time” discount is a penalty structure in reverse; one late payment removes it.
When comparing, use the estimated annual cost with and without the discount applied, which the official comparison tools will show.
Concessions and rebates
What it is: state or territory government support, applied as a credit on the bill.
What to check: that yours is actually showing. Concessions do not apply retroactively in every jurisdiction, and they can silently drop off after a house move, a name change on the account, or a retailer switch. If you are eligible and there is no concession line on the bill, that is money being left on the table every quarter.
Metering charges
Some bills separate out a metering or meter service charge. It may be bundled into the supply charge instead, depending on retailer and meter type. It is generally not something you can change without changing meter arrangements.
GST, and reading the total
GST applies to electricity. Concessions are usually applied before GST, discounts sometimes after — which is why hand-calculating the total often lands a few dollars out.
If your total is out by more than a few dollars after checking every line, call the retailer. Billing errors happen, particularly around meter changes, moves and rate changes on 1 July.
The five things worth checking every bill
- Year-on-year comparison — unexplained jumps point at a specific cause
- Tariff type — did it change without you agreeing to it?
- Controlled load — do you have electric hot water without one?
- Concession line — is it still there?
- Supply charge — for low-usage households, this is the number that matters most
What to do next
Once you can read the bill, the comparison becomes straightforward: you have the three inputs the official tools need — supply charge, usage rate structure, and actual consumption.
- How to Compare Electricity Plans in Australia — the comparison method using Energy Made Easy and Victorian Energy Compare
- Time-of-Use vs Flat Tariff — which tariff structure suits your household pattern
- Cut Your Australian Power Bill — the full guide this article is part of
- How to Calculate Appliance Running Costs — putting a dollar figure on individual appliances
Official sources
- Australian Energy Regulator — Understanding your energy bill
- Energy Made Easy — Australian Government comparison service
- Victorian Energy Compare
- Your state or territory government’s energy concessions page
Disclosure: Ezion Guide has no affiliate relationship with any energy retailer or comparison service. This is general information, not financial advice. Verify current rates and eligibility with the official sources above.
