Electricity tariffs

Understand tariffs

A tariff is a way we charge you for the electricity you use. Tariffs are typically made up of supply and usage charges.

• Supply charge - the daily fee you pay to receive electricity at your home and stay connected to the network, even if you don’t use any electricity that day.
• Usage charges - how much you are charged for the electricity you use, usually measured per kilowatt hour (kWh).

The type of tariff available to you can depend on whether you are a residential or business customer, where you live (your distributor zone) and what meter you have.

Energy distributors manage the ‘poles and wires’ and set network tariffs that help build, operate and maintain electricity services. These network tariffs get passed on to AGL and other energy retailers. We consider network tariffs along with other costs when setting the price for your electricity.

Why do tariffs change

Sometimes, we make changes to your tariff to better reflect network costs and to keep things simple. These costs can differ at different times of the day, so we make adjustments based on these costs to help you save on your bill.

Types of electricity tariffs

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

Single rate

You’re charged the same rate for electricity, whatever the time of day. 

How to save on a single rate tariff

For general advice on reducing your usage, check out our Energy saving tips.

Time of use

The cost of your electricity will change depending on the time of day. Time of use encourages you to use less power during periods of high demand.

• Peak rates are charged at times of low supply and high demand on the grid, like in the evening.
• Off-peak rates are charged at times of low demand on the grid, like overnight.
• Shoulder rates are generally cheaper than peak rates and can be charged in the middle of the day or overnight.

Find your peak, off-peak and shoulder times listed on page 2 of your bill under ‘New charges and credits’.

How to save on a time of use tariff

You may benefit from a time-of-use tariff if you:

• have a digital meter
• can use more electricity during off-peak times and less during peak times
• can schedule the start times of appliances like hot water systems, heating or pool pump.

Controlled load

You may also be charged for electricity used by a stand-alone appliance at a different rate from your other electricity usage. This could be something like an electric hot water system, underfloor heating, a pool or an irrigation pump. Usually, an electrician connects the appliance to your meter.

How to save on a controlled load tariff

Your appliance is often set to run at times when there’s less demand on the electricity grid and rates are lower.

Solar feed-in

A solar feed-in tariff is a credit you get on your bill for sending Excess electricity generated by your solar system back to the grid. The rate you receive varies depending on where you live.

Learn more about solar feed-in tariffs.

Demand

Demand charges are based on the pressure or load you place on the electricity network. These charges are measured over 30-minute intervals. The highest measurement is used to calculate your demand charge for the entire month. Demand charges may also change by season and are meant to encourage less usage during peak times.

AGL no longer offers Demand to homes not already using a Demand tariff.

Find your tariff type

You can find out what your tariffs are in:

• My Account or the AGL app
• the rates table in your Offer, including your Plan Summary
• any letters from us advising of changes to your energy plan or prices.

To check if you’re on the best plan for you, compare our energy plans.

Change your tariff

You may be eligible to change your electricity tariff depending on your location, meter type and when it was installed. This could help you save on your bill. You might like to take advantage of different rates at different times of day, based on how and when you use your electricity.

We’re here to help you understand your options and find what works best. We’ll provide details of available tariffs, including rates and time periods, to help you choose based on your household’s usage. If you move to a new tariff or plan, then decide it isn't right for you, you can switch back or choose a different one if it’s available. 

Contact us to check if you’re able to switch to another tariff.