The average Australian electricity bill contains a surprising amount of information — much of it confusing. Understanding each line item helps you catch errors, identify savings and make smarter decisions when comparing plans.
The main sections of an electricity bill
While layouts vary between retailers, all Australian electricity bills contain these core components: account details, a billing period summary, a usage summary, a cost breakdown, and your previous balance. Some bills also include a comparison against the reference price (required by law in most states).
Usage charges: what you actually pay for power
Your usage charge is calculated by multiplying your electricity consumption (measured in kilowatt-hours, kWh) by your usage rate (measured in cents per kWh). For example:
500 kWh used × 28 cents/kWh = $140 usage charge (excluding GST)
Usage rates vary significantly between retailers and plans. They can range from 18 cents/kWh on competitive plans to over 35 cents/kWh on poor-value plans. This is the most important number to compare when switching retailers.
Time-of-use vs flat rate
Some plans use a single flat usage rate for all hours. Others use time-of-use (TOU) pricing with peak, off-peak and sometimes shoulder rates. TOU plans suit households that can shift energy use away from peak times (weekday afternoons/evenings).
Supply charges: the daily connection fee
Your supply charge appears as a daily rate and accumulates over the billing period. If your billing period is 90 days and your supply charge is $1.10/day, that's $99 just to be connected — before you use a single watt of power.
Supply charges vary less than usage rates between retailers but are still worth comparing. High supply charges disadvantage low-usage customers (pensioners, empty nesters) who use little power but still pay the daily connection fee.
Tariff types you might see on your bill
| Tariff type | What it is | Common uses |
|---|---|---|
| General usage (Tariff 11) | Standard rate for all household power | Lights, appliances, heating/cooling |
| Controlled load (Tariff 31/33) | Discounted rate for off-peak dedicated circuits | Electric hot water systems |
| Peak usage | Higher rate during peak demand hours | Time-of-use plans, weekday afternoons |
| Off-peak usage | Lower rate during low-demand hours | Overnight, weekends |
| Feed-in tariff (FiT) | Credit for solar power exported to the grid | Solar panel owners |
Concessions, credits and rebates on your bill
Several concessions may appear on your electricity bill depending on your eligibility and state:
- Pensioner concession: Available to eligible pensioners and healthcare cardholders. Typically 17–30% off annual bill depending on state.
- Life support concession: For households with registered medical equipment (e.g. CPAP machines, home dialysis). Reduces supply charges.
- Medical cooling concession: Available in some states for people with medical conditions affected by heat.
- Feed-in tariff credit: If you have solar panels, your bill should show a credit for power exported to the grid.
If you believe you're eligible for a concession that isn't showing on your bill, contact your retailer or your state government's energy concession line.
Check the reference price comparison: Australian retailers must show how your plan compares to the Default Market Offer (DMO) or equivalent reference price. Look for this on your bill — it's a quick way to see whether you're getting a competitive deal or paying well above the benchmark.
Frequently asked questions
What is a supply charge on an electricity bill?
What is the difference between peak and off-peak electricity rates?
Why does my electricity bill have a concession amount?
What is the controlled load tariff on my bill?
How do I know if I'm being overcharged on my electricity bill?
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