Understanding Bundled and Unbundled Electricity Invoices
The price of Electricity that you pay on your invoice is made up of a range of different costs that accumulate along the journey from where that electricity was generated, to the point at which you flick of a switch to use it. Most electricity customers will receive what is called a bundled invoice, where these costs are pulled together to make it easier to compare, understand and interpret. However, larger users of energy such as shopping centres, supermarkets and manufacturers, will often receive what is called an unbundled electricity invoice. This invoice breaks out many of these costs to show all the different costs associated with that invoice, most of which is not helpful or comparable for smaller energy users such as households, apartments, town houses and small business.
If you receive an unbundled invoice, understanding the difference between these formats can help you manage your electricity costs more effectively and understand what costs you can and can't control.
Bundled Electricity Invoices
A bundled electricity invoice combines all electricity-related costs into a Usage Costs (Flat, Peak, Off Peak, Shoulder, Controlled Load), Demand, and a daily Supply Charge. This means that various cost components of generating and supplying your energy are merged into one rate or set of rates for you to easily track, manage and calculate.
Key Features of Bundled Invoices:
- Simplifies energy invoices, as customers see one rate rather than multiple itemised costs.
- Commonly used in residential and small business electricity contracts.
- Provides a single or bundled set of prices, that make it easier for customers to budget for their energy costs.
Unbundled Electricity Invoices
An unbundled electricity invoice itemises the different cost components separately, providing greater transparency in billing. Some of the costs that accumulate within this invoice may include:
- Energy charges (charges for the consumption of electricity)
- Network charges (regulated pass-through charges from distributors)
- Environmental charges (applicable to the supply and sale of electricity)
- Market charges (fees from Australian Energy Market Operator – AEMO)
- Metering and service charges
Key Features of Unbundled Invoices:
- Common in large commercial and industrial electricity contracts.
- Provides greater cost transparency, allowing larger users of energy to see the different costs that add up to their total energy cost.
Bundled vs. Unbundled Invoices in Embedded Networks
Just as within the wider Electricity Market, embedded networks (such as those managed by Energy On), may also structure invoices as either bundled or unbundled, depending on how charges are passed through to customers and the regulations in place within your local jurisdiction:
- Bundled pricing is simpler for residential and small businesses, making it a better way to compare against the regulated maximum prices and other providers.
- Unbundled pricing is more detailed, allowing businesses or large consumers to optimise costs by managing different components separately.
If you have any questions about your invoice structure, your embedded network operator or service provider, please reach out to our team today so we can assist you by providing more detail on how your charges are calculated
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