Energy bills can often read like a road map. However, if you want to stay on top of your household budget, it’s an important skill to have. After all, you’d want to make sure all the charges are accurate.
In this article, we’ll outline the key features you should look out for when reading your energy bill to help minimise the confusion.
Find out about ways to keep track of your electricity usage.
The content in your utility bill can be categorised into three different sections: essential information, usage costs and payment details.
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The essential information can usually be found at the very top of your energy bill. It usually includes details regarding your:
You’ll need these basic account details and account reference number on hand if you want to discuss your energy plan, bill or account details with your energy retailer (also known as a provider), which you can only do if you’re the primary account holder.
The supply details, including the property address and billing period, will also be outlined in this section, as well as the details of the energy plan you’re on.
Tip: If the supply address is your business location, keep a copy of the invoice filed away for taxation purposes.
Your retailer’s* contact information should also be listed on the bill to discuss any general queries or lodge complaints. You can also contact your distributor* (whose name and contact number are also listed on the bill) to report any faults or emergencies affecting your energy service.
*Energy retailers buy energy from energy generators, package it into plans and sell it to customers.
*Distributors are responsible for delivering energy and connecting homes and businesses to the grid.
Charges for your electricity bill are broken down into various structures and rates. The section of your bill that details your usage costs will normally be broken down into two subsections: meter details and usage calculation.
Meter details
The meter details will outline:
Estimated bills take into account your past energy consumption and calculates an amount based on previous bills and other factors. Estimated bills are usually only issued if your distributor can’t gain access to your property to read the electricity meter. Some retailers allow you to submit your own meter reading to receive an actual bill. There are three types of electricity meters that can measure your power usage: electricity basic meter, electricity interval meter, smart meter. So, keep in mind that the type of meter you have will also affect your bill.
If you’re interested in switching your electricity retailer, we recommend you keep your meter details handy when comparing energy plans. If you’re looking to sign up to a new plan, contacting the retailer over the phone will be the quickest method. However, if you’re submitting an online application, supplying your meter details will potentially speed up the application process.
Usage calculation
This section of the bill will explain how your energy bill has been calculated. It will outline:
Your retailer will calculate the usage charge with any peak, off-peak, shoulder and controlled load rates (see below) that may apply to your energy plan.
In each row of your bill calculation table, you’ll be able to see the amount of energy you’ve used and how much you’ve been charged for each applicable rate during that bill period. The total amount due (including GST) is the full amount you owe for that billing period for your energy usage.
No matter what tariff you’re on, you will see a peak charge line item on your bill. You may not see other charge types (e.g., off-peak, shoulder); however, as it will depend on the type of tariff you’re on.
If you’re on a single rate electricity tariff, you’ll typically be charged the peak rate for all your energy use, regardless of when throughout the day or night you used it.
If you’re on a time of use tariff, this rate is charged for electricity usage during the busy times of the day when demand is highest (e.g., in the mornings and evenings when everyone is at home). Peak times can also vary depending on the day of the week.
A reduced rate is charged for electricity usage during quieter times when demand is low. For example, 10pm-6am on a weekday or all-day Sunday is considered off-peak.
The rate that covers the gap between peak and off-peak times for a time of use tariff.
A charge for the level of demand a household or business has on the network for a specified period of the day. This is usually charged during the busy time of the day when everyone is using electricity (e.g., 2pm-8pm).
An electricity supply for specific appliances, such as hot water systems and underfloor heating, are separately-metered at a lower rate. These appliances are often used during off-peak times (e.g., overnight) and are typically large, energy-guzzling systems, so a controlled load tariff ensures that their energy usage doesn’t inflate your standard home bill.
*Blocks refer to specific amounts of energy usage, which may be charged at varying rates. For example, the first block of your energy usage may be priced higher than the next block of your usage.
Below the meter details and usage, you’ll find any discounts, fees and concessions (if applicable). Some common items in this category may include:
If you’ve recently moved to a new house, there may be a connection fee added to your first bill. This is a fee charged by the distributor for connecting a property to power. If you’ve switched plans or retailers since your last bill, you won’t be charged for this as your home will already have been connected.
If you have solar, the feed-in tariff (an amount you get for sending excess electricity back to the grid) will also be included in this section.
Electricity bill a little too high? Check out our article on how to save electricity!
With a natural gas bill, your usage will be calculated in megajoules (MJ), or units if you live in Western Australia (WA). Unlike an electricity bill, a natural gas bill has only two types of usage that can be charged: peak and off-peak. Natural gas bills are detailed in the much same way electricity bills are, but we’ll break down a typical natural gas bill and how LPG differs from being connected to the pipeline.
When it comes to your gas bill, charges are broken down by structures and rates. The usage costs section of your bill is typically split into two subsections: meter details and usage calculation.
Meter details
The details of your meter will include:
Estimated bills take into account your past energy consumption and calculates an amount based on previous bills and other factors. Estimated bills are usually only issued if your distributor can’t gain access to your property to read the gas meter.
There are two types of gas meters that can measure your power usage: a metric meter or an imperial meter. A metric meter (also known as a digital meter) records gas usage in cubic meters, while an imperial (or clock face) meter measures in cubic feet. Find out how to read your gas meter here.
Thinking about changing gas retailers? We suggest making sure your meter details are close by when comparing your options; usually, switching retailers involves submitting an application online and including your meter details may give your application process a faster turnaround. If you want a faster method, we recommend contacting us over the phone if you want to sign up for a new plan.
Usage calculation
This section on the bill will outline how your retailer calculated your charges. It will contain:
Unlike an electricity bill, a natural gas bill has only two types of usage that can be charged: peak and off-peak.
In your bill calculation table, the rows will show your total gas usage for the billing period and the amount your retailer has charged you for each applicable rate during that time. The amount owed for your gas usage in that billing period is known as your total amount due (includes GST).
On your bill, there will be a peak charge line item(s), no matter which tariff you are on. The other charge type for gas (off-peak), may be on your bill if you are on a seasonal tariff.
On a single rate gas tariff, usually you will be charged at peak rate(s) for all your gas usage, regardless the day or season. You will usually see different peak rates for different usage blocks*, depending on how much gas you use during the billing period.
*Blocks refer to specific amounts of gas usage, which may be charged at varying rates. For example, the first block of your gas usage may be priced higher than the next block of your usage.
If you’re in Victoria, you might see off-peak rates for gas. Retailers typically charge a reduced rate for gas usage during the summer period (known as seasonal rates).
Beneath the meter details and usage charges are any discounts, fees and concessions (if applicable). These may vary depending on your state, retailer and payment methods but can include:
If you’ve recently moved to a new house, there may be a connection fee added to your first bill. This is a fee charged by the distributor for turning on the gas to your property. If you’ve switched plans or retailers since your last bill, you won’t be charged for this as your home will already have been connected.
Keep in mind that the type of gas you use will affect your energy bill. If you have a liquefied petroleum gas (LPG) cylinder gas system that gets delivered to your home, you’ll pay as needed when you order a new cylinder instead of getting a regular bill.
LPG bills won’t have the same sections or items listed as an electricity or natural gas bill because they’re charged by bottle and not by usage. A typical LPG bill may look like this:
In the payment details, you’ll find important information like the total bill amount, which is usually highlighted in bold on the front of the bill. Next to it, you’ll also find the due date and additional conditions (if applicable); for example, you may have a payment plan set up with your retailer as a part of an additional condition.
It’s important to take the time to review your bill and ensure there are no discrepancies or issues prior to the payment date.
If there are no additional conditions, payment options can be found at the very bottom of the same page (commonly referred to as a payment slip). BPAY biller codes, direct debit, credit card, mail and pay in person at an Australia Post outlet are all common payment options.
There should be instructions on how to pay your energy bill, and you can always call up your energy retailer if you’re having trouble or have any specific queries. Keep in mind that if you’re paying with a cheque, you’ll have to cut off and send this section off with your cheque.
Now that you know how to read an electricity and gas bill, why not compare electricity plans to review your options? It could help you look for a cheaper plan for your household. You can also compare gas plans with us!
Compare quotes in minutes with some of Australia’s top energy retailers. Plus, if you do switch, there’s no disruption to your supply and we’ll handle all the paperwork.
Simples!
