How to read an electricity bill in Australia

Most Australians receive their electricity bill, wince at the total, and file it away without reading the details. That's understandable — bills are dense, full of jargon, and not designed to be transparent. But understanding your bill is the first step to knowing whether you're being overcharged. Here's a line-by-line breakdown.

The basics: what you're actually paying for

Every Australian electricity bill has two core charges:

• Supply charge (also called a service to property charge, or daily access fee): a fixed amount charged each day just for being connected to the grid, regardless of how much electricity you use. Typically 90–120 cents per day, or $330–$440 per year.
• Usage charge: the rate per kilowatt-hour (kWh) you pay for the electricity you actually consume. On a flat rate plan, there's one rate for all usage. On a time-of-use plan, the rate varies by time of day.

These two numbers — supply charge and usage rate — are what you need to compare plans accurately. Everything else on your bill is either a fixed obligation (GST, concessions) or administrative detail.

Supply charge: the charge you can't avoid

The supply charge exists because you're connected to the poles, wires, and meters that make up the electricity network. Even if you used zero electricity all quarter, you'd still owe this charge.

For a typical household on a 91-day quarter paying $1.07/day, the supply charge alone comes to$97.37 before GST. That's roughly 15–25% of a typical quarterly bill.

Supply charges vary by retailer and can differ even for the same network area. When comparing plans, don't just look at the usage rate — a plan with a lower usage rate but higher supply charge could end up costing more if you're a low-usage household.

Usage charge: where most of your bill comes from

The usage section shows your total kWh consumed in the billing period. This is measured by your electricity meter. Most meters are read by the network, not the retailer, every 3 months.

Example: If you used 412 kWh in a quarter at a rate of 28.5 cents per kWh, your usage charge is$117.42 before any discounts.

What's an estimated read?

If your bill says "estimated read" or "E" next to the meter reading, your retailer hasn't actually read your meter — they've guessed based on historical usage. This is common. Your next bill will have an "actual read" and the difference will be reconciled.

Discounts and what they actually mean

Many plans advertise discounts like "15% off usage charges." These are called conditional discounts because they only apply if you meet a condition — usually paying by the due date or setting up direct debit.

Here's the catch: the discount is applied to the "undiscounted rate," which retailers can set at whatever they like. A 15% discount on an inflated rate can be less value than a 0% discount on a genuinely cheap rate.

When comparing plans, always look at the effective rate after all discounts, not just the discount percentage.

GST

10% GST applies to all electricity charges in Australia. All prices in your comparison results at BillBetter are shown inclusive of GST, as this is what you'll actually pay.

Concessions

If you're a concession card holder, you may be eligible for state government concessions that reduce your bill. These are applied by the retailer and should appear on your bill. BillBetter's comparisons don't include concessions, as eligibility varies. Contact your retailer or state government energy department for details.

The bottom line: what to look for when you open your bill

The three numbers that matter most for comparison purposes are:

• Daily supply charge (in cents per day)
• Usage rate (in cents per kWh)
• Total kWh used in the billing period

With those three numbers (and your billing period in days), you can compare any plan accurately.

Or — enter your postcode on BillBetter and compare plans in seconds.