We know there are a lot of different charges, calculations and terms used in your bill that can make it seem confusing. To make it easy to manage your account, all the information you need to understand your bill is right here.
Our new Bill Explainers take you through the various line items and charges that appear on a sample AGL electricity or gas bill.
These explanations will help you understand some of the various schemes, charges and targets.
These are the costs charged by network service providers for providing the energy infrastructure and transportation services that transfer electricity from the generators via the transmission and distribution networks to your site. These costs are charged to AGL by the network service provider to pass through to you.
On average, network charges account for about half of your bill. These charges are reviewed annually, or under special circumstances, and adjusted to keep up with the cost of network maintenance and upgrades. They are overseen by the Australian Energy Regulator (AER). For customers in New South Wales, Queensland, South Australia, ACT and Tasmania, network changes are most likely to occur from 1 July. For Victorian customers, changes are effective on 1 January each year.
Emissions and Renewable Energy Charges
These are charges applied by AGL that relate to a number of schemes aimed at promoting renewable generation, greenhouse gas emissions abatement and energy efficiency.
The Renewable Energy Target (RET)
The national Renewable Energy Target (RET) is split into the LRET and the SRES. They create a financial incentive for investment in renewable energy sources through the creation of certificates that AGL is required by law to buy.
RET - Large-scale Renewable Energy Target (LRET)
This target focuses on the establishment and growth of renewable energy power stations, such as wind and solar farms, or hydro-electric power stations. It does this by requiring liable entities such as AGL to buy and surrender to the Clean Energy Regulator a certain number of Large-scale Generation Certificates (LGCs) each year that is equal to a proportion of the electricity we sell. The LGCs are created and sold by these renewable energy these power stations.
RET - Small-scale Renewable Energy Scheme (SRES)
This scheme creates a financial incentive for individuals and small businesses to install eligible small-scale renewable energy systems, such as solar water heaters, heat pumps, solar panel systems, wind systems or hydro systems. It does this by requiring liable entities such as AGL to buy and surrender to the Clean Energy Regulator a certain number of Small-scale Technology Certificates (STCs) each quarter. The STCs are created and sold when these systems are installed.
What impact does the RET have on your business?
AGL’s liability to surrender LGCs is determined by the Renewable Power Percentage (RPP), which is updated by the government every year. Similarly, AGL’s liability to surrender STCs is determined by the Small-scale Technology Percentage (STP), which is also set annually. These percentages are applied to the volume of electricity AGL sells and these liabilities in turn drive the cost that AGL passes onto customers in the form of the LRET and SRES charge portions of the emissions and renewable energy charges.
What is the Victorian Energy Efficiency Target (VEET) scheme?
This is a Victorian Government initiative designed to make energy efficiency improvements more affordable, contribute to the reduction of greenhouse gases, and encourage investment, employment and innovation in industries that supply energy efficiency goods and services. Energy retailers such as AGL must procure and surrender Victorian Energy Efficiency Certificates (VEECs) to satisfy their liabilities under the VEET scheme and this cost appears on Victorian customers’ bills as the VEET charge portion of the emissions and renewable energy charges.
What is the NSW Energy Savings Scheme (ESS)?
This scheme aims to reduce electricity consumption in NSW by creating financial incentives for businesses to invest in energy-saving projects. Energy retailers such as AGL must procure and surrender Energy Savings Certificates (ESCs) to satisfy their liabilities under the ESS, and these costs appear on NSW customers’ bills as the ESS charge portion of the emissions and renewable energy charges.
Australian Energy Market Operator (AEMO) charges
What are the AEMO Pool Fees?
These fees are charged by AEMO to cover the cost to AEMO of managing the national electricity market. The amount charged to AGL is calculated based on the volume of electricity consumed by AGL customers and this is then passed on to our customers.
What is the AEMO ancillary service charge?
AEMO obtains ancillary services to help it manage any risks to the safety, security and reliability of the electricity network. AEMO passes the cost of this on to AGL in proportion to the volume of electricity consumed by AGL customers and we in turn pass this cost on AGL customers.
What are Approved Energy Loss Factors?
Electrical resistance on the transmission and distribution networks causes energy to be lost in the form of heat along the wires. This means that the volume of electricity generated and exported onto the network is greater than the volume that is consumed at the other end of the network. Distribution Loss Factors are published by AEMO each year in accordance with the National Electricity Rules, and they are factored in at all stages of electricity production and transport to ensure enough electricity is generated to meet demand. Changes to Loss Factors have a flow on effect on your Energy Charges and Emissions and Renewable Energy Charges.
Gas charges explained (contracted customers)
What are CPI Charges?
CPI (Consumer Price Index) is a measure of changes, over time, in retail prices of a constant basket of goods and services across all groups, using the weighted average of eight capital cities, published by the Australian Bureau of Statistics. AGL will vary charges where a Reference Date is specified in Part 3, 4 or 5 of the Agreement for the Sale of Gas. Changes will take effect from the Review Date each year after the Reference Date and use the CPI Escalation Formula found in the Agreement.
Network Charges are direct pass-through charges from distributors, and are approved by the Australian Energy Regulator or the State Regulator in Western Australia. New South Wales, Queensland and South Australian customers may experience a price change, effective from 1 July each year. For Victorian and Western Australian customers, a price change may occur, effective from 1 January each year.
Regulated charges (VIC customers only)
The Australian Energy Market Operator (AEMO) charges AGL several fees that are specific to the Victorian wholesale gas market which relate to AEMO's costs incurred in operating the market. AGL in turn passes these on to Victorian customers. These are reviewed annually and Victorian customers may experience changes, effective from 1 July each year.
STTM Activity Fee (NSW, QLD and SA customers only)
The Australian Energy Market Operator (AEMO) charges AGL a fee to recover its costs of managing the Short Term Trading Market for wholesale gas in Queensland, NSW and South Australia. This charge is reviewed annually and changes may occur, effective from 1 July each year.
These FAQs are the based on what the most common types of questions we get from our business customers.
Here you will find the latest Default Rate pricing schedules for our large business customers, and the contracts or principles that may apply to large customers who do not have a large market contract in place.