How to read an electricity bill (in Australia)

Laura
6 min readFeb 17, 2021

Like most of us the main thing I pay attention to on my electricity bill is the cost. Has the price dramatically increased because of all this heating we’ve needed this …summer?? (La Nina!)

There’s a lot of information on them. Probably too much. But if you take a moment to have a look, you might find some useful things that will help you in your efforts to reduce consumption. You could even save some money!

I think it’s important to break down electricity. So we can get inside and truly understand it. Coming to you as a non-expert, the information below is from the internet and a recent webinar called ‘Energy Simplified.’

Watts
What’s a watt?? Electricity is measured in watts and kilowatts. A watt (W) is one unit of electrical power. The power consumption of small devices is usually measured in watts, and the power consumption of larger devices is measured in kilowatts (kW) or 1,000 watts. There are other things at play here too like amps and volts, but I’m not your science teacher.

Generally, the less watts used over a longer period, the more energy efficient something is. If you exist in the world, you’d recognise this label.

Another example everyone would be familiar with is lighting. The most efficient energy saving lights produce the most light (lumens) using the least electricity (watts). Energy efficiency in lighting products is given in lumens per watt (lm/W).

The more power required for something, the higher the wattage you’ll need from the power supply. More doesn’t always necessarily mean worse though. It’s better to have more power than not enough. Therefore, it is better to run a higher wattage unit at half capacity than a lower wattage unit at full capacity.

Running times also play into it. Heaters and kettles have similar electricity use but have vastly different running times — unless you’re a mammoth tea drinker.

So watt does this have to do with reading an energy bill? Your bill and how much you’re charged is based on how many kilowatts you’ve used over a period of time. Usually a few months.

The actual bill!

On the back of the bill you’ll notice a bunch of tables with lots of dates and numbers.

Meters are used to measure how much gas or electricity is being used at your property. I live in an apartment block so there are multiple meters, four are mentioned on this bill. The electricity company takes the readings from the meters and, based on the providers charge and your use, the total cost is determined.

However, at different points of the day the rate changes. This bill highlights the Peak rate, which is the standard supply daily rate. But there’s also the Off Peak, which is usually dedicated to a hot water system and heating. These would be at a set time based on when the provider would see a spike in usage of electricity in the household. So, theoretically, if you showered and did your laundry late at night you probably wouldn’t be charged the Peak rate, just the Off Peak rate because that’s opposite to what most people would do. (I have no basis or evidence for this theory.)

According to a random internet forum, here are some times that may or may not be accurate.

  • Peak is from 2 pm — 8 pm on working weekdays.
  • Shoulder is from 7 am — 2 pm and 8 am — 10 pm on weekdays and 7 am — 10 pm on weekends and public holidays.
  • Off Peak is at all other times.

Also! That rate and time of day can change seasonally too. In summer what is considered the Peak time for us to be using power is different to winter. It is best to check with your energy provider for the exact times for the plan you are on.

There also might be a supply charge noted on your bill, which is the cost of delivering energy to your house. Maybe a shoulder charge, which is another Off Peak rate. An Off Off Peak. You might also see ‘Controlled Load’ depending on where you live too. Which is just another bit of usage separated out for a cheaper tariff. Usually for hot water systems in older homes.

If you pay for renewable energy, that also can appear as separate line items on bills, depending on how it is set up.

There is also an NMI — national meter identifier. This is used by your provider and distributor to identify the meter at your location.

Should you be that way inclined, you can download ALL the meter data (called a NEM13 or NEM12 report) from your distributor. Your provider is your Red Energy’s, AGL’s, etc. They are the ones that bill you. Your distributor is companies like CitiPower/Powercor, Jemena, Western Power, Energex. You can check your distributor at Australian Energy Regulator. They are responsible for looking after metering data and making it available to you.

Commercial buildings get even more confusing. Just an FYI.

The front of the bill

We started at the back and have made our way to the front. On the front of the bill you will see:

  • The total amount currently owed.
  • The unpaid amount from a previous bill (if any).
  • Usage and service charges.
  • Billing period.
  • Seasonal variation (graph).
  • Average daily use.
  • Best offer.

Most I imagine are pretty self-explanatory. The most interesting to me is the ‘Best Offer’. This may not be true of other states, but in Victoria energy providers are required to inform their customer if they could be saving money on another plan. This was put in place to ensure people would be able to pay their bills. It won’t appear each time, only every three months. For gas it’s every four months.

On my bill you can see there could be savings of nearly $140 per year if I changed plans. Should probably do something about that.

Watt else can we do!

If you really want to reduce your consumption, might I suggest starting with a jumper. Heating and cooling is one of the biggest energy sucks in the home.

If you do have your heater on for a bit, stop precious warm air from escaping. Big areas cost a lot more than small. Close doors and don’t run heaters overnight. Electric blankets or throws are more efficient.

For cooling, you could run 20 fans for the cost of just one hour of air conditioning. Save air conditioning for extremely hot days and fans for milder ones. Keep doors closed and cool one area well instead of lots of areas.

This might seem odd to some, but only have one fridge — especially if the second fridge is empty. I blame our parents for this one. My father has two fridges and a separate freezer! The second fridge is almost always empty except when he has guests over. So unnecessary. My advice would be to never have guests over.

Washing clothes in cold water is about the quarter of the cost of hot water. Also, front loader washing machines are more energy efficient than top loaders. They use about half as much water, require less detergent, and come out drier if you’re drying them. If you have the luxury of space, hang up your clothing instead of using a drier.

For lighting, use LED’s instead of Halogens. LED bulbs use 7–20 watts per hour, while halogens use between 35–500 watts per hour. They emit the same amount of light.

Check the age of your appliances. As appliances age, their overall energy efficiency goes down due to aging parts, malfunctioning devices, bad seals, etc. Look for products that have energy star ratings and stickers. You can buy plugs to test the wattage of your appliances and see if they’re consuming more than they should. They’re pretty fancy these days. You can get smart plugs that measure and provide a history for how much energy is being used, and you can check from an app on your phone. They are great if you need to troubleshoot why your bill is higher than you expect or if you are just curious!

Lastly

It’s important to point out that though we need to play our part as individual consumers, our emissions pale in comparison to that of large-scale organisations. Also, changing legislations are key. Purchasing power is important too. Organisations won’t make products that we won’t buy. Food for thought!

Until next time!

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