How to Read Your Electricity Bill

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A simple guide to the numbers, charges and information on an Australian residential bill

Electricity bills can look complicated because they combine energy usage, network charges, retailer costs, solar credits, taxes and account information. This guide breaks the common sections down into plain English.

The five numbers to find first

  1. Billing period: The dates covered by the bill. Check how many days are included before comparing one bill with another.
  2. Total amount due: What the retailer says is payable for this billing period, after credits, payments, discounts and adjustments.
  3. Total usage: Usually shown in kilowatt-hours, or kWh. This is the amount of electricity recorded by the meter.
  4. Supply charge: A daily charge for keeping the property connected to the electricity network.
  5. Usage rate: The price charged for each kWh of electricity used, often shown as cents per kWh.
 

1. Account summary

The first page usually gives a quick summary of the account. It may include the amount owing, the due date, the billing period, the previous balance, payments received and any new charges.

If the bill shows a previous balance, check whether it has already been paid. An amount under “payments”, “credits” or “adjustments” may reduce the final amount due.

2. Billing period and meter reads

The billing period tells you how long the bill covers. A longer billing period will naturally use more energy and may have more daily supply charges.

Meter readings may be marked as actual, estimated or substituted. An actual reading comes from the meter. An estimated reading is calculated by the retailer or distributor and may be corrected on a later bill when an actual reading is available.

When comparing bills, daily usage is often more useful than the total bill amount.

3. Electricity usage in kWh

A kilowatt-hour, or kWh, is a unit of energy. Your bill may show total kWh, average daily kWh or a graph comparing current usage with previous periods.

Usage can change because of weather, heating and cooling, hot water, pool equipment, household size, working from home and changes to appliances.

Simple example: if a home uses 20 kWh per day for a 90-day billing period, its approximate usage is 1,800 kWh.

4. Supply charges

The supply charge is usually listed as cents per day. It is charged even when the home uses very little electricity because it covers the ongoing connection to the network and supply arrangements.

To estimate the period’s supply cost, multiply the daily supply rate by the number of days in the billing period.

5. Usage charges and tariffs

The usage charge is the cost of the electricity consumed. The price may vary depending on the tariff or time of use.

  • Single rate or flat rate: The same usage rate applies at all times.
  • Time-of-use: Different rates apply during peak, shoulder and off-peak periods.
  • Controlled load: A separate rate may apply to equipment such as electric hot water, usually on a dedicated circuit.
  • Demand tariff: Some plans include a charge based on the highest level of electricity demand during a defined period.

The exact tariff names and periods vary by retailer, network and plan. The bill or retailer energy facts sheet should show the rates that apply to your property.

6. Solar feed-in credits

If the home has solar, the bill may show electricity exported to the grid. This is usually measured in kWh and credited at a feed-in tariff, shown in cents per kWh.

Solar exports are different from solar energy used directly in the home. Energy used by appliances at the time it is produced may not appear as an export on the bill, because it never passed through the meter to the grid.

Important: a feed-in tariff is only one part of the bill. A household can still have a bill if it imports electricity at other times, pays daily supply charges or uses more energy than the solar system produces.

7. GST, discounts and concessions

Bills commonly show GST either within the listed charges or as a separate amount. Some customers may also see concession credits, government rebates, retailer discounts, pay-on-time discounts or other adjustments.

Check whether a discount is ongoing, conditional or only available if the account is paid by a particular date.

8. Meter, NMI and property details

The bill may include the meter number and the National Metering Identifier, or NMI. These identify the electricity connection and property. They are useful when comparing quotes, changing retailers or discussing the account with an authorised provider.

For privacy, remove the NMI, account number, address, name, barcode and payment details before sharing a bill publicly or with anyone who does not need them.

9. Reading the usage graph

A graph can help identify patterns that the total amount alone does not show. Look for the number of days, average daily usage and changes between seasons.

  • Is usage higher in winter or summer?
  • Are there large changes after installing an appliance?
  • Is the current bill based on an actual or estimated reading?
  • Has daily usage changed, even if the total bill looks similar?
  • If the home has solar, is grid usage still high in the evening or overnight?

10. How solar and batteries change the bill

Solar can reduce the amount of electricity purchased from the grid, especially when appliances use solar energy during the day. A battery can store surplus solar and make some of that energy available in the evening or overnight.

A bill normally shows electricity that passed through the grid meter. It does not show every unit of solar energy produced and used directly inside the home. This is why a solar monitoring app and the electricity bill provide different pieces of the picture.

A simple way to assess a bill

  1. Confirm the billing dates and number of days.
  2. Find total imported usage in kWh.
  3. Check whether the meter reading was actual or estimated.
  4. Identify the supply charge and usage rates.
  5. Look for solar export credits, discounts and other adjustments.
  6. Compare average daily usage with previous bills.
  7. Consider when the home uses energy, not just how much it uses.

Quick questions

Why is my bill high when I have solar? Solar may reduce daytime grid purchases, but the home can still import energy in the evening, overnight or during periods of low solar production. Supply charges and other charges also remain.

What is the difference between usage and supply? Usage is the electricity consumed. Supply is the daily cost of remaining connected to the network.

Why does my bill say estimated? The retailer may not have received an actual meter reading for that period. A later actual reading may adjust the account.

Is a higher feed-in tariff always better? Not necessarily. The best plan depends on both the export credit and the price charged for electricity imported from the grid, plus any conditions or fees.

Can a bill tell me how much solar my panels produced? Usually not. The bill mainly shows energy imported from or exported to the grid. Your inverter or solar monitoring app is generally used to see total solar generation.

Would a copy of your bill help?

Yes. A sample bill would let us create a more accurate, visual guide using the exact sections and terminology your customers are likely to see. We could also explain which figures are most useful when assessing solar, battery or energy-saving opportunities.

Before uploading it, please redact personal and account details such as your name, address, NMI, account number, barcode, payment references and bank information. Leaving the usage, rates, dates, meter reads, solar credits and charge descriptions visible would be helpful.

This guide is general education. Electricity bill layouts, tariffs, network charges and solar credits vary between retailers, plans and locations.