Energy tariffs explained

Understanding the different tariff types

It's not the most exciting topic, but it's important to know a little bit about tariffs. You should know what you are being charged for and if you are on the right type of plan for your household.

What is a tariff?

In energy, a tariff refers to how you are charged for your electricity. There are usually two parts to the charges included in your tariff.

Supply charge (also known as daily supply charge or fixed charge)
Usage charge (also known as variable or consumption charges)

What is the supply charge?

This is simply the daily charge to supply electricity to your property and keep you connected to the grid for your electricity.

You will pay a fixed supply charge price per day, regardless of the energy you use.

What are usage charges?

Usage charges are the amount you pay for each unit of electricity as cents per kilowatt hour (c/kWh).

There are different types of usage charges depending on your energy plan, your meter, where you live and when you use energy.

Common usage charges

Anytime usage

A single rate tariff that charges the same rate per kWh regardless of the time of day energy is used.

Anytime usage explained

Time of use

A tariff that charges different rates for using energy at different times of day. Periods are usually peak, shoulder and off-peak.

Time of use explained

Controlled load

Is where a large household appliance, such as hot-water system or pool is metered separately from the rest of the property at a lower rate.

Controlled load explained

When you see anytime usage on your bill, you pay for energy at a single price regardless of time or day. This rate is usually less than the peak rate but not as low as off peak or shoulder rates.

Anytime usage has no peak or off-peak offering and might be suited to you if you use most of your energy at peak times, such as weeknights.

Anytime usage rate is the simplest type of usage tariff and is available regardless of your meter type. The tariff for anytime usage still includes both a supply charge and usage charge.

Example charges only:


Supply charge	22 (days) x $1.13 per day = $24.86
Usage charge	273 kWh (used) x $0.25 per kWh = $68.25
Total	$93.11

When you see Peak, Off-peak or Shoulder on your bill you are likely on a time of use plan. This means you will be charged variable rates for electricity at different times of the day.

Peak: most expensive rates during peak demand periods (e.g. weekdays from 4pm to 8pm)
Off-peak: less expensive energy rates, usually overnight and on weekends
Shoulder: slightly less expensive rates, typically between peak and off-peak periods

Time of use plans are a good choice if you can shift energy usage to off-peak times. You will need a smart meter or a basic time of use meter to be on a time of use plan.

Tariff for time of use still includes both supply charge and usage charge.

Example charges only:


Supply charge	22 (days) x $1.13 per day = $24.86
Peak usage charge	90 kWh (used) x $0.50 per kWh = $45.00
Off-peak usage charge	220 kWh (used) x $0.25 per kWh = $55.00
Total	$124.86

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