Understanding tariffs
Electricity tariffs determine how customers are charged for their energy usage. Different tariffs use varying pricing methods, impacting how much you pay for electricity. Understanding your tariff allows you to better manage your electricity bill and make smarter, more informed energy choices.
Network tariffs
Network tariffs cover the costs of building, operating, maintaining, and upgrading the electricity distribution network, ensuring homes and businesses receive safe, reliable, and resilient power.
We charge network tariffs to energy retailers, who bundle these costs with other charges across the energy supply chain into customer pricing plans. For more on this, see our role in your energy costs.
Network tariffs are evolving for a fairer, smarter grid
National rules require us to align tariffs more closely with how customers use the network, ensuring a fairer and more efficient system.
In line with this, we've introduced time-of-use tariffs for retailers instead of a single flat rate. This shift, encouraged by the National Electricity Rules and Australian Energy Regulator (AER), reflects modern energy use and promotes a fairer pricing structure.
Our tariffs are adapting to changing energy use now that more and more customers are feeding affordable solar energy into the grid during the middle of the day. To support this shift, we’ve reduced our midday charges to the lowest ever rate so all customers can benefit from cheap solar energy.
Our revenue is capped by the Australian Energy Regulator. Because we operate under a regulated revenue cap, this change in tariffs charged to retailers does not increase our revenue.
Network tariffs reflect the changing way customers use the network
We aim to:
- share the costs of maintaining and upgrading the network fairly among all customers.
- encourage and incentivise more efficient use of the network, bringing costs down for everyone.
- ensure energy customers pay their fair share for the way they use the network.
- include our lowest ever network tariff for retailers to encourage consumption of cheap, sustainable solar energy in the middle of the day.
How we keep network costs down
| Efficient network management | We target network investment in the service outcomes our customers value and prioritise |
| Cost control | We closely control our operational expenses to prevent unnecessary cost increases for customers |
| Regulatory oversight | The Australian Energy Regulator ensures our network tariffs to retailers are fair and reasonable |
