Understanding Tariff Changes: How They Impact Your Energy Bill

Tariffs are often updated because of changes from regulators. There’s not really a short answer, but it can help to understand how your energy network plays a part in it.

Energy distributors and network tariffs

Depending on where you live, you’ll have a specific energy distributor. They’re the people who look after the poles and wires that physically deliver power to your house. It’s a bit like shopping online. Think of them as the local posties, and we’re the online store you bought your package from.

Distributors set tariff prices in consultation with regulators, and the tariffs they charge make up around 37% of the average residential power bill. They’re not always directly passed on from distributor networks to customers (retailers like us have a bit of control over this), but it often makes sense for us to structure our tariff charges similarly to distributors.

Above: The cost breakdown of an average electricity bill as supplied by the Victorian Essential Services Commission (percentage figures rounded to the closest whole number).

When will the new tariffs take effect?

Networks can reassign tariffs once a year, and any rate changes will generally take effect on July 1.

Why are two-way solar tariffs being introduced?

More households (and businesses) are jumping on the solar-bandwagon, which is great news for the planet. But that means that during peak times, there can be an excess of solar in the energy grid. The two-way solar tariff is encouraging customers to export during quieter periods when the grid could use a renewable-boost. We’ve got a whole explainer on two-way solar that you can read right here.

FAQs

How will this affect my electricity bill?

How can I check my current tariff?

Can I change my plan if I’m affected by a tariff increase?

What can I do to manage my energy costs?

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Why are tariffs changing?

Energy distributors and network tariffs

When will the new tariffs take effect?

Why are two-way solar tariffs being introduced?

FAQs

How will this affect my electricity bill?

How can I check my current tariff?

Can I change my plan if I’m affected by a tariff increase?

What can I do to manage my energy costs?

How controlled load tariffs work – and why they save you money

A controlled load tariff is a bit like giving your most power-hungry appliances VIP status.

Read more

Demand tariffs: Is it all a matter of timing?

When it comes to electricity, taking full advantage of a demand tariff might help you hack your way to a lower power bill.

Read more

What is peak and off-peak electricity?

Ever wondered why your power bill seems a biiit higher than you expected, even though you’re barely home all day? We’re breaking down what it actually means and how you can get more off-peak and more on-budget.

Read more