Understanding what elements make up the cost of electricity can be difficult and the different ways that pricing is offered in the market and pay-on-time discounts make it even harder!
It is common for people not to be aware that the cents per kilowatt hour (kWh) price that they are paying for isn’t just for the electricity you use. There are a lot of different things that make up an electricity price because there are many different stakeholders involved in getting the electricity into your home; from the Generators who make it, the Distributors who supply infrastructure (the poles and wires) to send it to you and the Retailers who sell it to you.
Along the way, everyone involved takes a little bit for themselves.
So, generally electricity bills consist of the following price components:
- cost of electricity;
- network charges (the cost to transmit and distribute electricity, from generators to wires to end-users);
- a retail margin (the on-sell cost from retailer to customer);
- government and market charges (e.g. Australian Energy Market Operator (AEMO) charges)
- the costs of environmental schemes and other add-ons (National - LRET, SRES, State - VEET, ESS, GEC)
Usage Fluctuations
Energy On understands that electricity usage can fluctuate throughout the year and we want you to be aware of things that can vary your electricity usage.
There are seasonal factors, such as colder or warmer weather, which can result in fluctuations in your usage. Standby energy consumption from household appliances that consume electricity even when they are not operational can also contribute to unexpected usage, even when you are not home.
Energy On knows electricity, and wants to help you understand your usage, so if there are any further queries please contact us.