What is the daily supply charge on an electricity bill?

The daily supply charge is a fixed fee you pay for being connected to the grid, regardless of how much electricity you use. It covers network infrastructure (poles, wires, transformers) and metering. In 2026, typical supply charges range from $0.85 to $1.30 per day ($310-$475 per year). You cannot avoid this charge while remaining grid-connected.

What is the difference between a flat rate and time-of-use tariff?

A flat rate charges the same price per kWh at all times — typically 28-35 c/kWh. A time-of-use (TOU) tariff varies by time of day: peak (typically 35-55 c/kWh during afternoon/evening), shoulder (25-35 c/kWh), and off-peak (15-22 c/kWh overnight). TOU tariffs reward shifting usage to off-peak periods.

What is a controlled load tariff?

A controlled load is a separate meter and circuit for specific appliances — usually electric hot water systems or pool pumps. The network operator controls when power flows to this circuit (typically overnight). In exchange, you pay a much lower rate (15-22 c/kWh). Your main electricity meter and controlled load meter appear as separate line items on your bill.

How do solar feed-in credits appear on my bill?

Solar feed-in credits appear as a separate line item, usually as a negative amount that reduces your total. The credit equals your exported kWh multiplied by your feed-in tariff rate (typically 3-10 c/kWh depending on state and retailer). The credit only applies to electricity exported to the grid — electricity you use directly from your panels does not appear on your bill at all.

Why is my electricity bill so high even with solar?

Solar only offsets electricity you use while the sun is shining. If most of your usage is in the evening (heating, cooking, entertainment), you are still drawing from the grid at full price. Check your bill for the split between import and export — high export and high import means you are generating plenty but not using it at the right time. Solutions include a battery, load shifting, or a timer on your hot water.

How do I compare electricity plans in Australia?

Use the government comparison tools: Energy Made Easy (energymadeeasy.gov.au) for all states except Victoria, and Victorian Energy Compare (compare.energy.vic.gov.au) for Victoria. Upload your NMI (National Metering Identifier, found on your bill) to get personalised comparisons based on your actual usage pattern. Ignore advertised rates — compare the estimated annual cost.

Understanding Your Electricity Bill Australia

Most Australians pay their electricity bill without fully understanding what they are paying for. The bill arrives, the total looks high, and it gets paid. But understanding each line item is the first step to reducing your costs — whether through solar, batteries, tariff switching, or simply shifting when you use electricity.

This guide explains every charge on a standard Australian electricity bill, how the main tariff types work, and how to tell whether you are on the right plan.

The five components of every electricity bill

Every residential electricity bill in Australia has the same basic structure, regardless of your retailer or state:

Daily supply charge — fixed daily fee for grid connection
Usage charges — the cost of electricity you consumed (per kWh)
Solar feed-in credit — payment for electricity you exported (if you have solar)
Discounts or concessions — pay-on-time discounts, government concessions
GST — 10% on the total

Some bills add controlled load charges, demand charges, or green energy surcharges as additional line items. We will cover each below.

Daily supply charge

What it is: A fixed fee charged every day for being connected to the electricity network. It covers the cost of the poles, wires, transformers, and meters that deliver electricity to your property.

What it costs: Typically $0.85–$1.30 per day in 2026, depending on your network area and retailer. That is $310–$475 per year before you use a single kilowatt-hour.

Can you avoid it? Not while grid-connected. Even if you have solar and a battery and import zero electricity in a billing period, you still pay the daily supply charge. The only way to eliminate it is to disconnect from the grid entirely (go off-grid), which is a significant decision with substantial costs. See our off-grid solar guide for what that involves.

Why it matters: The supply charge means there is a baseline cost to electricity that usage reduction alone cannot eliminate. For a household with very low consumption (under 5 kWh/day), the supply charge can represent 30–50% of the total bill.

Usage charges — how you are billed for electricity

Usage charges are billed per kilowatt-hour (kWh) of electricity consumed. One kWh is the energy used by a 1,000W appliance running for one hour — or a 100W appliance running for ten hours. For a practical sense of what appliances cost to run, use our appliance running cost calculator.

How much you pay per kWh depends on your tariff type. There are three main types in Australia.

Flat rate tariff

The simplest structure. You pay the same rate for every kWh, regardless of when you use it.

Typical rates (2026):

State	Typical flat rate
SA	34–43 c/kWh
NSW	31–40 c/kWh
QLD	26–34 c/kWh
VIC	26–34 c/kWh
WA (Synergy)	30–33 c/kWh
TAS (Aurora)	27–31 c/kWh
ACT	25–30 c/kWh

Best for: Households that cannot shift usage to off-peak times, households with solar (maximises the value of self-consumption, since every kWh you avoid importing saves the same amount regardless of time of day).

Time-of-use (TOU) tariff

Electricity costs different amounts depending on the time of day. The day is split into peak, shoulder, and off-peak periods.

Typical TOU rates (2026):

Period	Typical time window	Typical rate
Peak	2pm–8pm weekdays (varies by network)	35–55 c/kWh
Shoulder	7am–2pm and 8pm–10pm weekdays, daytime weekends	25–35 c/kWh
Off-peak	10pm–7am every night, all day some public holidays	15–22 c/kWh

The exact time windows vary by network and retailer. Ausgrid (Sydney), Endeavour (Western Sydney), Essential (regional NSW), Jemena (Melbourne), CitiPower (Melbourne CBD), Powercor (regional VIC), SA Power Networks, and Energex (SEQ) all define their own peak/shoulder/off-peak windows. Check your bill or your network’s website for the exact times that apply to you.

Best for: Households with batteries (charge off-peak, discharge peak for maximum arbitrage), EV owners who charge overnight, and households that can shift heavy loads (dishwasher, washing machine, pool pump) to off-peak. For EV-specific tariff strategy, see our best electricity plan for EV owners.

Demand tariff

A demand tariff adds a charge based on your maximum demand — the highest rate of electricity consumption in any 30-minute interval during the billing period, measured in kW.

How it works: If you run your air conditioning, oven, dryer, and EV charger simultaneously on a hot afternoon, drawing 10 kW for 30 minutes, your demand charge for that entire billing period is based on that 10 kW peak — even if your average demand is only 2 kW.

Typical demand charges: $5–$15 per kW of maximum demand per month. A peak demand of 10 kW could add $50–$150 to your quarterly bill.

Most residential customers are not on demand tariffs. They are more common in commercial settings. However, some networks (Ausgrid’s EA010 tariff, for example) offer residential demand tariffs that can be advantageous for households with solar and batteries that can manage peak demand.

Batteries are excellent at reducing demand charges — they absorb peak loads and prevent demand spikes from reaching the grid meter. See the demand charge glossary entry for more detail.

Controlled load — the separate circuit

A controlled load is a dedicated circuit and meter for specific high-consumption appliances — most commonly an electric hot water system, but sometimes a pool pump or slab heating.

How it works

Your property has two meters (or two channels on a smart meter):

General supply meter — everything else in the house
Controlled load meter — only the hot water system (or designated appliance)

The electricity network operator (not your retailer) controls when power flows to the controlled load circuit. Typically, power is available overnight (roughly 10pm–7am) when grid demand is low. Some networks offer a daytime boost window as well.

In exchange for this control, you pay a much lower rate — typically 15–22 c/kWh compared to 30–40 c/kWh on general supply.

How it appears on your bill

Controlled load charges appear as a separate line item, usually labelled:

Controlled Load 1 (CL1) — typically overnight only (8 hours)
Controlled Load 2 (CL2) — longer availability (up to 18 hours, including some daytime)

You will see separate usage (kWh) and rates for each.

Is controlled load still worth it with solar?

If you have solar, a controlled load running overnight means your hot water heats with grid electricity at off-peak rates instead of free solar electricity during the day. You might be better off:

Switching your hot water to the general supply circuit and using a timer to heat during solar hours
Installing a solar diverter that sends surplus solar generation to the hot water element
Replacing your electric element system with a heat pump hot water system that draws a fraction of the electricity

This is one of the most common “hidden” savings for solar households — the controlled load tariff that made sense before solar can actually cost you money after solar is installed.

For more on controlled load decisions, see the controlled load glossary entry.

Solar feed-in credits

If you have solar panels, your bill will show a feed-in credit for electricity exported to the grid.

How it appears

The credit is typically shown as:

A separate line item with a negative value (reducing your total)
Listed as “Solar feed-in credit” or “Excess generation credit”
Calculated as: exported kWh x feed-in tariff rate

Current feed-in tariff rates (2026)

State	Typical FiT range
TAS	7–9 c/kWh
QLD	5–7 c/kWh
NSW	4–7 c/kWh
SA	4–7 c/kWh
VIC	3–5 c/kWh
ACT	4–8 c/kWh
WA (Synergy DEBS)	2.25 c/kWh

What is NOT on your bill

The electricity you generate and use directly (self-consumption) does not appear on your bill at all. It never reaches the grid meter. This is the most valuable use of solar — every kWh you self-consume avoids importing a kWh at 28–40 c/kWh. The feed-in credit for exporting is only 3–10 c/kWh.

This is why self-consumption matters far more than feed-in tariffs. For strategies to maximise self-consumption, see our solar export limits guide.

Checking your solar performance

Your bill shows how much you exported and how much you imported. These two numbers tell you a lot:

Export	Import	What it means
High	Low	Good self-consumption. Solar is well-matched to usage.
High	High	Solar generating well but not being used. Load shifting or battery would help.
Low	High	Small system relative to usage, or heavy evening/night consumption.
Low	Low	Low overall consumption. Solar well-matched but small system.

Discounts, concessions, and other charges

Pay-on-time discounts

Many retailers offer a 1–3% discount for paying by the due date. Some offer larger discounts (up to 10–15%) but inflate the base rate to compensate — the “discount” is illusory. The ACCC has cracked down on misleading discounts, but they still exist.

Always compare the total annual cost, not the discount percentage.

Government concessions

State governments provide energy concessions for eligible households:

State	Concession	Typical value
VIC	Annual Electricity Concession	~$362/year
NSW	Low Income Household Rebate	~$285/year
QLD	Electricity Rebate	~$372/year
SA	Energy Bill Relief	~$500 (one-off in some years)
WA	Energy Assistance Payment	~$305/year
TAS	Annual Electricity Concession	~$275/year
ACT	Utilities Concession	~$800/year (all utilities)

Eligibility is typically linked to holding a Centrelink Pensioner Concession Card, Health Care Card, or DVA Gold Card. These concessions appear as credits on your bill.

GreenPower

Some bills include a GreenPower charge — a voluntary payment for accredited renewable energy. If you have solar, you are already generating renewable energy. GreenPower is an additional voluntary contribution, not a mandatory charge. You can opt out through your retailer.

GST

All charges are subject to 10% GST. The GST is shown separately on your bill.

How to read the key numbers

Here is what to look at on your bill to understand your electricity costs:

1. Average daily usage (kWh/day)

Most bills show your average daily consumption. The Australian average is approximately 16–18 kWh/day. If you are significantly above this and do not have a pool, electric hot water, or EV, your home may have inefficiencies worth investigating.

2. Usage per tariff period

If you are on a TOU tariff, check the split between peak, shoulder, and off-peak usage. If most of your consumption is in peak periods, either shift loads to off-peak or consider switching to a flat rate.

3. Import vs export (solar households)

Check the ratio. If you are exporting more than 50% of generation, you are leaving value on the table. Strategies: timer on hot water, run appliances during solar hours, consider a battery.

4. Cost per kWh (effective)

Divide your total bill (excluding supply charges and credits) by your total kWh consumed. This gives your effective rate. Compare this to the rates on the government comparison tools to check if you are competitive.

How to compare plans

The single best action most households can take is switching to a more competitive plan. The Australian Energy Regulator estimates that households on standing offers (the default plan) pay 20–40% more than those on the best market offer.

Use the government comparison tools

Energy Made Easy (energymadeeasy.gov.au) — for NSW, QLD, SA, TAS, ACT
Victorian Energy Compare (compare.energy.vic.gov.au) — for VIC only

Both tools accept your NMI (National Metering Identifier) — the unique number for your electricity connection, found on your bill. Entering your NMI lets the tool pull your actual usage data and provide personalised cost comparisons across all available plans.

What to compare

Estimated annual cost — the only number that matters. Ignore headline rates.
Tariff type — flat rate vs TOU. If your lifestyle suits TOU (EV charging, battery, flexible usage), it can save significantly.
Feed-in tariff — if you have solar, a higher FiT can offset a slightly higher usage rate.
Contract terms — some plans lock you in for 12–24 months. Check exit fees.
Bill smoothing — some plans spread your annual cost into equal monthly payments. This does not save money — it just smooths cash flow.

How often to switch

Review your plan every 12 months. Retailers regularly adjust pricing, and new plans become available. Many plans have no exit fees, so switching is low-risk.

Common bill mistakes and rip-offs

Estimated reads

If your meter has not been read (physically or remotely), your bill may be an estimate. Estimated bills are based on historical usage and can be significantly wrong — especially if you have recently installed solar. Check your bill for the words “estimated” or “E” next to the meter reading.

If your bill is estimated and seems wrong, request an actual meter read from your retailer.

Wrong tariff type

Some households are on a TOU tariff when a flat rate would be cheaper (or vice versa). If you cannot shift usage to off-peak, a TOU tariff penalises your peak consumption heavily. Run the comparison tools with your NMI to find the optimal tariff type.

Controlled load on solar homes

As discussed above, a controlled load heating water overnight means you are paying off-peak rates instead of using free solar. This is one of the most common missed savings for solar households.

Standing offers

If you have never actively chosen a plan, you are likely on a standing offer — the default, regulated plan. Standing offers are almost always more expensive than market offers. Switching takes 10 minutes on the comparison tools.

The bottom line

Your electricity bill is not complicated once you understand the structure: a fixed daily charge for connection, a per-kWh charge for what you use, and credits for what you export. The tariff type (flat, TOU, or demand) determines what you pay per kWh and when.

The single highest-value action is to use the government comparison tools with your NMI to check if you are on the best available plan. The second is to understand your peak vs off-peak split and adjust accordingly — either by switching tariff type or shifting when you use electricity.

For households considering solar, a battery, or an EV, understanding your bill is the foundation. Everything else — system sizing, battery economics, EV charging strategy — builds on knowing what you are currently paying and how you are using electricity.

Use our appliance running cost calculator to see what individual appliances cost to run at your tariff rate. For EV charging costs specifically, see our EV charging cost guide.

How to Read Your Electricity Bill in Australia: Every Charge Explained