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Electricity tariffs

Things to know about your bill and electricity tariffs.

Understanding tariffs

A tariff refers to how you’re charged for your electricity usage. The type of tariff you have can depend on where you live and what meter you have.

Tariffs are made up of different components, such as:

  • supply charges
  • charges for the electricity you use, which may vary depending on the time of day or the season
  • charges based on the demand you place on the electricity network.

To find out what your tariffs are, look at the rates table in your Confirmation Pack, or on any letters from us advising of changes to your Energy Plan or prices.

You can also view these details online in My Account or the AGL app at Energy Plan details.

Tariffs explained

Different types of electricity tariffs and how you’re charged

Your tariff is made up of one or a combination of tariff types:

  • Single rate - You’re charged at the same rate for the electricity you use no matter what time of day.
  • Time of use - You’re charged different rates at different times of the day, which may include peak, off-peak and shoulder periods. Peak times are generally when electricity is being used the most, and off-peak periods are the quieter times. If shoulder rates are being charged, these periods generally sit between peak and off-peak periods. These rates may also change by season.
  • Controlled load - You may also be charged for electricity supplied to a specific stand-alone appliance, such as an electric hot water system, at a different rate to your other electricity usage.
  • Demand - Demand charges are based on the load you place on the electricity network. They’re measured over 30-minute intervals during your demand time period. The highest measure for the billing month is used to calculate your demand charge for the entire month. Demand charges may also change by season.

How we calculate your demand charge

Meet Davis

Davis is on a demand tariff. The demand rate is $0.25 per KW per day. We calculate the highest usage value by multiplying the highest 30-minute kW measurement during the defined demand period by two. In this instance, 3kWh x 2 = 6kWh.

Number 1
Review their usage

We review usage during the defined 'demand' period for this month and find the highest usage. In the above instance, 3kWh x 2 = 6kWh

Number 2
Calculate their daily demand charge

Highest usage value this month: 6kWh x Davis' demand rate: $0.25 = Daily charge: $1.50

Number 3
Calculate their monthly demand charge

Daily charge: $1.50 x No. of days in billing month: 31 days = Demand charge: $46.50

Davis' demand charge on their monthly bill is $46.50

This amount forms part of what Davis pays for their electricity bill, along with supply and general usage.

A bell curve chart with an X axis of Time and a Y axis of kW. The chart showing a high of 3kW at 7, then tapering off to 0 at each end.

What makes up your electricity bill

There are a number of components that make up your electricity bill, such as:

  • electricity usage charges, supply charges or demand charges (these will vary depending on your tariff)
  • additional fees if applicable (for example, a connection or payment processing fee)
  • optional extras like Carbon Neutral
  • solar feed-in tariffs if you’re a solar customer
  • discounts or credits if included under your energy plan.

Smarter savings tips

Understanding tariffs and the way you use electricity in your home or business can help you get the best value for money. 

Here are some quick cost saving tips to help lower your energy bill:

  • Change your usage patterns to shoulder or off-peak hours if possible to save on your bill if you’re on a time of use tariff.
  • Use appliances like washing machines, dryers, hot water heaters and pool pumps at different times of the day to use less energy. 
  • Make small changes like programming thermostats and running non-time critical machines or equipment during these reduced rate times.

More ways we can help