Energy bills are often complex. In most cases, without a solid background in energy, it can be difficult to understand what you are actually being charged for when you pay your bill.
What makes up energy charges on a bill?
An energy bill is made up of several different charges. Energy itself makes up just under half (around 45 per cent) of the total. The charges that make up the remainder of an energy bill include: network, market, environmental and service related charges.
– Network charges cover costs involved in the transporting of electricity from generators, across the transmission and distribution networks to a site. These charges are reviewed and adjusted annually.
– Market charges are fees which are paid to the Australian Energy Market Operator (AEMO) to operate and maintain the National Electricity Market (NEM).
– Environmental charges are costs associated with complying with State and Federal schemes which are aimed at promoting efficient use of energy, reducing greenhouse gas and funding renewable energy generation.
– Other service related charges are fixed fees which typically cover costs associated with electricity retailing such as service charges and retailer fees. This section may also include additional metering fees that may be associated with metering or monitoring services.
Energy Action strongly believes in empowering its customers with both resources and knowledge. For this reason, Energy Action has developed the “Get to know your bill” section to be an interactive energy bill resource on their website.
Click on the sample bill to begin exploring the different sections of the bill.
Also, whether you are concerned about your energy bill, or just interested in seeing if there’s a better deal available, we encourage all visitors to take advantage of our “free energy bill health check offer”.
Send an online enquiry for more information on this obligation free service.
About Energy Action
Energy Action is Australia’s leading independent energy management company, offering comprehensive buying and management services aimed at reducing energy usage and saving businesses money.
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