How to Read Your Electricity Bill
Electricity bills are designed to be confusing. They want you to glance at the total, sigh, and pay. Do not do that. Once you know what to look for, comparing plans becomes straightforward.
The 4 Numbers That Actually Matter
1. Usage Charge (c/kWh)
This is the per-unit cost of electricity you consume. Every kWh your household uses is multiplied by this rate. This is the number you should care about most. A difference of 2c/kWh on an average household (4,800 kWh/year) is $96/year. If you have a single rate tariff, there is one usage charge. If you have time-of-use, there are three (peak, off-peak, shoulder).
2. Supply Charge (c/day)
The fixed daily cost of being connected to the grid. You pay this regardless of whether you use any electricity. It covers poles, wires, and meter maintenance. Typically 90-120c/day. The supply charge varies more by location than by retailer. Regional areas have higher supply charges because the poles and wires are longer.
3. Solar Feed-in Tariff (c/kWh)
What you get paid for electricity you export to the grid. Only on your bill if you have solar panels. Ranges from 5c to 15c/kWh depending on retailer and state. A higher FIT means a lower net bill.
4. Discounts & Conditions
Pay-on-time discounts, direct debit discounts, dual fuel discounts. These sound good but are designed to distract you from the actual rates. A plan with 25% off a high rate is worse than a plan with no discount at a low rate. Always compare the rates first, then factor in discounts. Most retailers in NSW offer 1-5% pay-on-time discount. In VIC, conditional discounts are mostly banned.
How to Calculate Your Actual Bill
Take your last bill and find these numbers:
- Usage charge × your kWh used = your electricity cost. Example: 25.8c/kWh × 400kWh = $103.20
- Supply charge × days in billing period. Example: 98c/day × 90 days = $88.20
- Add them together = $191.40
- Subtract any solar feed-in credits (if you have solar). Example: exported 150kWh × 8c/kWh = -$12.00
- Your net bill = $179.40
Now plug those same numbers into another plan. If EnergyAustralia charges 28.4c/kWh instead of 25.8c, the usage cost jumps to $113.60 — that is a $10.40 difference for one month. Over a year that adds up to $124.80. Small percentage differences add up fast.
Real NSW Electricity Bill Breakdown (June 2026)
Here is what an actual bill looks like for a 3-person household in Sydney (Ausgrid network), on a market offer:
| Charge | Rate | Usage | Cost |
|---|---|---|---|
| General Usage | 25.80 c/kWh | 498 kWh | $128.48 |
| Supply Charge | 98.50 c/day | 90 days | $88.65 |
| Solar Feed-in | 8.00 c/kWh | 140 kWh exported | -$11.20 |
| Total | $205.93 | ||
That same bill on a standing offer would cost about $285. The difference is the market discount. This is why comparing plans matters.
5 Ways to Lower Your Bill Right Now
1. Switch to a market offer. If you have not switched in 12+ months, you are probably on a standing offer paying 20-30% more than you need to. Compare plans on our homepage.
2. Track your usage with a smart plug. The biggest electricity hogs are hidden. A smart plug with energy monitoring shows you exactly what each appliance costs to run. We recommend the TP-Link Tapo.
3. Run appliances off-peak. Washing machines, dishwashers, and EV chargers cost 50-70% less during off-peak hours. If you have a time-of-use tariff, shifting these loads saves $200-400/year.
4. Install solar. A 6.6kW system in NSW saves about $1,200/year on electricity. With STC rebates bringing the upfront cost to $4,500-$6,500, payback is 4-5 years. Get solar quotes on our solar page.
5. Check for concessions. NSW Low Income Household Rebate gives $285/year off. The Medical Energy Rebate adds $285/year if you have qualifying medical equipment. Check your state government energy website for what you are eligible for.
4. Discount / Conditional Rebate
The percentage discount some retailers advertise. Usually "X% off usage charges" if you pay on time or sign up for direct debit. These are marketing. Focus on the actual c/kWh rate AFTER the discount, not the discount percentage. A 30% discount off a 40c rate is still worse than a 25c rate with no discount.
The Quick Audit
Take your last bill. Find the usage charge in c/kWh. Then open the AER's Energy Made Easy website and compare it to market offers in your postcode. If your rate is more than 3c above the cheapest available plan, you are leaving $100-150/year on the table. Switching takes 5 minutes.
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