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Reduce your energy bills

About your electricity bill

Two women looking at energy bills


Your electricity bill is made up of a number of costs. Electricity retailers generally bill you in two ways—with fixed charges and variable charges. The variable part of your bill you are able to influence directly (for example by changing how and when you use power) and by which energy contract you choose.

The fixed charge is a flat daily fee that your retailer charges you to cover costs associated with having an active electricity connection.

Costs shared by all network users also affect your bill. They include network costs—the poles and wires that get electricity to your home—which make up about half of total electricity costs.

Network costs have been driving up electricity prices in recent times, largely due to the need to maintain and upgrade existing aging infrastructure and also to ensure the network can meet demand at peak times (when everyone is using electricity).

Recent market reforms are working to reduce network costs. By reducing consumption at peak times households can also contribute to a reduction in future network costs, by helping avoid the need for further network upgrades. For those requiring more detail, there's additional information to help you understand your bill and manage your usage (125KB PDF).

You can continue to make energy savings in your household by following some of the ideas in this guide and reducing your use.