In this article, Canstar Blue explains electricity and natural gas connections and disconnections across multiple distribution networks in Australia, as well as any associated fees.
On this page:
- 10 electricity fees to be aware of
- What is a connection fee?
- What is a disconnection fee?
- How much does a connection or disconnection fee cost?
- How much do retailers charge for connection and disconnection fees?
- How do I connect a new property to the grid?
- What is a special connection?
- How to avoid electricity fees
Compare energy deals
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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11% Less than reference price |
$1,614 Price/year (estimated) |
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18% Less than reference price |
$1,491 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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10% Less than VDO |
$1,304 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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4% Less than reference price |
$1,990 Price/year (estimated) |
Go to Site |
10 energy fees to be aware of
Energy fees vary across different retailers, distribution networks and energy types. Some customers are not charged some fees at all.
Below is a list of fees you might come across. However, be sure to check specific details with your energy retailer before agreeing to sign up.
1. Connection fee
A connection fee is the standard move-in fee. If you are moving to a new property that needs to be reconnected to the energy grid a connection fee is applied. Although this fee is usually between $10 and $50 some retailers charge as much as $90.
2. Disconnection fee
A disconnection fee is charged when you move out and your home needs to be disconnected from the power grid. These charges can be anything from $10 to $200. Renters usually will not have to pay this fee when moving out, as the real estate will often take over the electricity account.
3. Dishonour fee
Where a customer agrees to pay their bill via direct debit, they must make sure adequate funds are in the designated account on the payment date. If there is insufficient money a dishonour fee will be charged. This fee is usually between $10 and $20.
4. Cheque dishonour fee
If a customer pays their bill via cheque and that cheque bounces a dishonour fee may be charged. This fee is usually around $15.
5. Late payment fee
Failing to pay your bill by the due date may incur a small fee of about $10 to $50. In addition, customers on certain deals may lose their pay on time discount.
6. Account establishment fee
Some electricity retailers may charge a fee to new customers for the cost of setting up their account. This fee is fortunately small but it’s important to check for before switching to a new retailer.
7. Exit fee
Some market contracts offered by certain energy retailers will charge an ‘exit fee’ if a customer leaves the contract within the first one or two years. This essentially locks the customer in. Luckily exit fees are fairly uncommon. However, they can be costly if you are caught out. For that reason, always check exit fees before signing an electricity contract.
8. Credit card payment fee
If you pay your bill using credit or debit card, you may be charged a fee between 1% and 3% of the amount paid. Credit card fees are quite common and could be significant for customers who often receive large bills.
9. Paper bill fee
Many companies are moving online these days. If you prefer to having a paper bill mailed to you instead of a digital bill, you might have to pay a fee of about $2. However, some major retailers have now scrapped paper bill fees.
10. Payment processing fee
Not all retailers charge this fee but, if they do, it is usually only around 0.2% to 1% of the total bill amount.
What is a connection fee?
Energy retailers may charge a connection fee when customers move from one property to another. Before moving into a new property, you’ll need to contact your energy company to transfer the electricity and/or gas account to your name. Most energy retailers need up to three business days to organise a connection. However, if you need to connect sooner, you can call the retailer and organise an urgent connection. This may attract additional fees.
Usually households with physical connections to the power grid will be disconnected by having the electricity switched off. Your retailer can organise a reconnection through the local distributor. Customers will usually not need to be at home, though this should be confirmed with the retailer in order to avoid potentially missing an appointment and paying additional callout fees.
Connection charges will differ significantly among distributors in each area so it is important to read your energy fact sheet or contact your provider if you have any concerns.
What is a disconnection fee?
Similar to a connection fee, you may be required to pay a disconnection fee when moving out. The disconnection process and associated fees are very similar to connections. Simply contact your current energy provider at least three business days ahead of time and they will organise disconnection at the property.
It is important to do this sooner rather than later though, as for each day you are connected to the energy grid, you may incur a fixed network service charge – usually around $1 a day. This applies regardless of whether or not you use any electricity. If you move out and don’t disconnect your property immediately you may end up incurring additional costs. This is something to keep in mind if you have a gas connection but don’t use any gas – you’ll still be charged for supply.
If the property is being demolished the customer must request a ‘supply abolishment’ that can cost upwards of $300.
How much does a connection or disconnection fee cost?
Connection or disconnection fees usually sit around a fairly reasonable $10 to $50. However, some distributors may charge up to $100. The distributor is the company responsible for managing energy infrastructure in your area, while the retailer is only responsible for billing and customer-end services. Your retailer may collect the connection/disconnection fee on behalf of the distributor. This means you cannot really shop around for a cheaper connection charge.
The table below shows connection fee estimates for electricity and natural gas distribution networks across Australia. These fees are based on the ‘final meter read’ or ‘remote connection/disconnection’ estimated costs from each distributor and should be used as a general guide only. Costs may be higher for customers who need manual disconnection or reconnection services. Additional support may also incur further costs. For more information it is best to contact your energy retailer or network distributor.
Electricity connection and disconnection fees by distribution network
| State | Distribution network | Connection fee | Disconnection fee |
|---|---|---|---|
| NSW | Ausgrid | $22.41 | – |
| Endeavour | $32.16 | $32.16 | |
| Essential Energy | $85.14 | $80.95 | |
| QLD | Energex | – | – |
| Ergon Energy | – | – | |
| ACT | EvoEnergy | $108.30 | $106.15 |
| SA | SA Power Networks | $60.94 | $60.94 |
| VIC | Citipower | $47.00 | $47.71 |
| Powercor | $47.00 | $47.71 | |
| Ausnet Services | $41.89 | $43.27 | |
| Jemena | $59.30 | $59.30 | |
| United Energy | $65.23 | $65.23 | |
| TAS | TasNetworks | $62.59 | $62.59 |
| WA | Horizon Power | $6.52 | |
| NT | Power and Water Corporation | $70.57 |
| Source: www.canstarblue.com.au – 4/10/2024. Figures based on information available from the relevant distributors’ website. Fees are inclusive of GST. |
Gas connection and disconnection fees by distribution network
| State | Distribution network | Connection fee | Disconnection fee |
|---|---|---|---|
| NSW | AGN – Albury | $103.40 | $89.10 |
| Jemena | – | – | |
| QLD | AGN – QLD | $78.10 | 95.70 |
| Allgas Energy | $90.01 | $90.01 | |
| ACT | EvoEnergy | $62.70 | $184.80 |
| SA | AGN – SA | $96.80 | $96.80 |
| VIC | AGN – VIC | $107.80 | $107.80 |
| Ausnet Services | $73.25 | $73.25 | |
| Multinet | $54.09 | $64.16 | |
| TAS | TasGas | $110.00 | – |
| WA | Atco Gas Australia | $136.00 | – |
| NT | Power and Water Corporation | $70.57 | – |
| Source: www.canstarblue.com.au – 4/10/2024. Figures based on information available from the relevant distributors’ website. Fees are inclusive of GST. |
How much do retailers charge for connection and disconnection fees?
Energy retailers may charge customers a connection or disconnection on behalf of the energy distributor in the customer’s area. While these prices may differ from retailer to retailer, it is important to note that prices are set by the distributor and not retailers.
As an example of what customers could pay, Canstar Blue has shared pricing information from the big three providers below.
Origin connection fees
Customers can contact Origin Energy to organise an electricity or natural gas connection. Expect to pay anywhere from $14 to $102 for an electricity connection, and $7 to $63 for a gas connection, depending on where you live.
AGL connection fees
AGL will connect your home electricity for up to $70. It will also connect gas for a maximum of $15.
EnergyAustralia connection fees
EnergyAustralia can connect your home to the electricity grid for as little as $14 or as much as $102. Gas connections, on the other hand, will set you a back little more – between $13 and $168.
Compare cheap electricity plans
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
How do I connect a new property to the grid?
To connect a new property to the electricity grid, you’ll need to contact the local energy distributor for the area. There will usually be no upfront fee as the distributor recovers its costs through the network charge component on power bills. New South Wales customers, may need to organise an accredited service provider (not the distributor) to set up connections and costs must be paid upfront. Fees could amount to several hundreds of dollars depending on the complexity of work.
What is a special connection?
Special connections require more hardware than a standard or basic connection. Some distributors may call these extension services, because they need to extend power pole lines to the property in order to build the connection out. Others may require additional powerlines to reinforce the existing infrastructure, which is known as an augmentation.
As you might expect, these services are likely to come at an additional cost but extension services will usually be provided on a quoted basis. Prices and connection policies vary considerably across different distributors, so be sure to check with your local distributor before planning a new connection.
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How to avoid electricity fees
You can avoid some fees described in this article by receiving bills via email and paying electricity costs in full and by the due date. Ensure funds are ready in your account to avoid a dishonour fee. With that said, some fees such as credit card processing, payment processing, connection and disconnection fees can still be difficult to avoid. Of course, you can always contest these fees with your retailer to see if they can be waived or adjusted.
Remember that fees usually vary across different electricity providers. If you believe that you’re paying too much on added fees shop around to see if you can find a more reasonable retailer. You can get started using Canstar Blue’s electricity satisfaction ratings and price comparison tool via the link below.
Original reporting by Kelseigh Wrigley
Image source: biDaala studio/Shutterstock
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