Energy Bills Explained
Tariff Rate-Discount applies
-The amount per kWh (measurement for energy in units of 1000Watts) you pay-this will be applicable to your household energy use and your separate hot water use if you have electric hot water or electric boosted solar hot water.
-The price for household energy may be 30cper kWh for example.
-Tariff rates are the ONLY part of the energy bill that receives a discount when it is offered.
Controlled Load (CL1,CL2)/Circuit Consumption-Discount applies
-This is your hot water if you don't have gas plumbed to your house.
-Depending on your current plan, it may not be itemised and included in the costing and usage(kWh) information.
-CL1 means your water re-heats overnight(10pm-7am) at a much cheaper "off-peak" tariff rate. Eg 10c per kWh
-Sometimes people also have CL2 if they are likely to run out of hot water before late evening. It is charged at a higher rate Eg 16c per kWh.
Daily Supply Charge-Never discounted!
-This charge is for the supply of electricity or gas to your house. As indicated in its name, it is charged each day of the billing period and NOT DISCOUNTED.
-This is where energy retailers can catch unaware customers out!
-Some retailers will offer 25% or more off the usage/tariff charges, BUT they may have a much higher Daily Supply Charge and tariff rate.
Eg $1.30 Daily Supply Charge, 31c/kWh tariff rate and 25% discount off tariff prices.
88c Daily Supply Charge, 28c/kWh tariff and 23% discount off tariff prices.
-Daily supply charges are also added separately to the hot water component of the bill as well. Again, depending on the plan, this may be hidden in the overall Daily Supply Charge if you can't see it itemised.
-GST of course is added to every bill.
Most households have a regular/standard bill plan with PEAK-Household energy usage where the tariff rate doesn't change other than the separate hot water meter which may also read as OFFPEAK.
There is also a TIME-OF-USE variation which does not suit families due to the high peak prices starting at 2pm-8pm (Eg 40c/kWh), shoulder usage at 8pm-10pm & 7am-2pm (Eg 25c/kWh) and Off peak 10pm-7am(Eg 10c/kWh).
I have included a link that may also help with understanding bills better, but the key take- away from this is to compare the Daily Supply Charge and Tariff rates before deciding if the highest discount really will lower your costs. It may be disguising the other charges.