Understand your energy bill

Once you have your energy data, you need to understand how to calculate your bill before you can identify where to save money. Your electricity and gas bills are likely to include both fixed and variable costs for the supply of energy, including costs for:

  • delivering the electricity or gas
  • building and maintaining the network
  • environmental schemes and government concessions
  • retailer services such as managing your account and producing your bill.

Not all of the fees on your bill are negotiable, but there are areas where you might be able to change to help you save money.

Electricity and gas tariffs

This is the rate your business pays to use electricity and gas at a specific time. Depending on your contract, one or more of the following tariffs may apply:

  • Single or flat rate tariffs charge the same price regardless of the time of use.
  • Time of use tariffs charge different prices for different periods. For example, peak, shoulder and off-peak rates.
  • Demand or volume tariffs work on the maximum amount of energy that you use over a period.
  • Block tariffs vary depending on the amount of energy you use. The less you use, the cheaper it is per unit (common for gas). The more you use, the more expensive it is per unit (more common for electricity).

How pricing works against these tariffs depends on the type of energy contract or agreement you have in place. Tariff charges are only negotiable on certain contracts. For details on electricity and gas tariffs, visit the Australian Energy Regulator website. Find out more about the energy discounts and fees on the Energy Made Easy website.

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