Key points
- An electricity usage charge is the amount your household pays for every unit of electricity that is consumed each day.
- It is not related to your household being connected to the electricity grid (that is called a supply charge).
- Households in the ACT, Tasmania and Victoria typically pay the lowest electricity usage charges.
In this guide, Canstar Blue explains what an electricity usage charge is and how it can impact your energy bill.
To ensure you’re getting the right deal from your energy provider, it’s important to understand electricity usage charges. These rates form part of your electricity tariff (the amount charged for providing energy to your home under the terms of your electricity plan). Your electricity usage rate will make a big difference to what you pay for energy.
On this page:
- What are the average electricity usage charges in Australia?
- What is an electricity usage charge?
- Where do I find the electricity usage charge on my bill?
- Energy deals with cheap electricity rates
- Why is there more than one electricity usage charge on my bill?
- Who sets electricity usage charges?
- When do electricity usage charges change?
What are the average electricity usage charges in Australia?
What do electricity usage charges look like, and what could you expect to pay for every kWh of electricity you use? To offer a guide, Canstar Blue has calculated the average usage rate per kWh for single-rate tariffs across each distribution network in New South Wales, Victoria, South East Queensland, South Australia, the Australian Capital Territory and Tasmania. Prices are shown in cents per kWh.
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| State | Distribution Network | Average Electricity Usage Rate (per kWh) |
|---|---|---|
| NSW | Ausgrid | 33.7c/kWh |
| NSW | Endeavour Energy | 34.2c/kWh |
| NSW | Essential Energy | 37.1c/kWh |
| VIC | AusNet Services | 34.1c/kWh |
| VIC | Citipower | 24.8c/kWh |
| VIC | Jemena | 28.9c/kWh |
| VIC | Powercor | 28.9c/kWh |
| VIC | United Energy | 27.7c/kWh |
| QLD | Energex | 33.0c/kWh |
| SA | SA Power Networks | 43.6c/kWh |
| ACT | Evoenergy | 29.6c/kWh |
| TAS | TasNetworks | 28.1c/kWh |
| Source: www.canstarblue.com.au – 15/01/2025. Average electricity usage rates are based on non-solar only plans on Canstar’s database for each respective rate type (single rate and controlled load), available for annual usages based on the reference usage amounts for each distributor for controlled load plans: NSW, VIC, QLD, and SA per AER, VIC per Victorian Default Offer, ACT per ICRC, TAS per the median usage in the Office of the Tasmanian Regulator’s report, Typical Electricity Customers in Tasmania 2022. Controlled load supply charges based on plans that have a supply charge for controlled loads. In Queensland, the tariffs are more commonly referred to as tariff 11 (single rate), tariff 31 (controlled load 1), and tariff 33 (controlled load 2). In Tasmania, the tariffs are more commonly referred to as tariff 31 (single rate), tariff 61 (controlled load 1) and tariff 41 (controlled load 2). |
As you can see, South Australians generally pay the highest kWh in electricity usage charges, while the average rates are much lower in the other states. Households in the ACT, Tasmania and Victoria typically pay the lowest electricity usage charges.
What is an electricity usage charge?
An electricity usage charge, also previously known as a consumption charge or variable charge, reflects the cost of the electricity you use in your home. It’s the amount you pay for every unit of electricity that your household consumes each day. Every kilowatt hour used (kWh) is added up and calculated for your next monthly or quarterly bill.
Where do I find the electricity usage charge on my bill?
An electricity usage charge is shown as cents per kilowatt hour (c/kWh). It’s typically noted on the second page or on the back of your bill. Below is an example of a bill showing electricity usage rates:
Energy deals with cheap electricity rates
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.
Why is there more than one electricity usage charge on my bill?
Some bills might show more than one electricity usage charge, as with the example shown above. This is because there are multiple tariff types available, which may be broken down into different time periods – depending on factors like your supplier or distribution network, your bill may show:
- Single rate tariff: usually called anytime, peak, flat or standard rate on your electricity bill, and this is typically your main tariff.
- Time of use tariff: includes peak (usually weeknights where electricity costs the most), shoulder (rate that is less than peak) and off peak (cheapest rate overnight and on weekends).
- Controlled load tariffs: separate metered tariffs charged at a lower price.
Controlled load tariffs see households charged a lower rate for things like hot water systems and pool pumps. This might be listed as an off peak charge, which is typically a cheaper rate because electricity demand will be lower overnight.
In our example bill, the household has a peak and off peak charge, as well as a supply charge (this is separate to a usage charge). This is typical of many Australian households.
Who sets electricity usage charges?
Electricity usage charges are set by individual energy retailers, or by state governments, depending on whether you live in a state with a deregulated electricity market. VIC, NSW, SEQ and SA are deregulated, which means electricity retailers are free to set their own usage charges, along with various other rates and terms. Retailers purchase electricity from the National Electricity Market (NEM) and add their own charges to cover costs. The Goods and Services Tax (GST) is also added to electricity usage charges, plus any state-based government expenses.
Meanwhile, households in Western Australia, Northern Territory, TAS and regional Queensland have their electricity usage charges set by their respective governments. Energy prices in these areas remain as regulated markets. Price regulation remains a huge political talking point, with some arguing that competitive electricity markets – in which retailers are allowed to set their own rates – haven’t been beneficial to consumers.
When do electricity usage charges change?
In most areas, electricity retailers set their own usage charges and can change them whenever they like, provided the customer is on a variable rate plan and they’ve been given notice. Customers on a fixed rate energy plan see their electricity usage charges locked in for a set period. In terms of when prices change, this depends on factors like the particular provider and location.
Some electricity retailers change their prices on a regular basis, but as a general rule, usage and supply rates are amended every 12 months – in NSW, SEQ, VIC, SA, TAS and the ACT, this happens in July. However, given that providers in most areas are free to change their prices whenever they like, it’s important to keep an eye on your bills and on any other communication from your energy provider because it could include some important information about price changes.
To help you start comparing energy providers and plans, click the link below to use Canstar Blue’s comparison tool.
Original reporting by Dean Heckscher
Image Source: Yelantsevv/Shutterstock.com
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