Why is there a supply charge when I barely use power?

The supply charge is the fixed daily part of the plan shown on your bill. The usage charge depends on the kilowatt-hours, or kWh, you buy. Comparing both parts matters especially when the home uses little grid electricity.

A small amount each day adds up

At an illustrative $1.10 a day, the supply charge is $401.50 over a 365-day year.

If you use 3 kWh a day at 30 cents per kWh, the annual usage charge is $328.50. The total is $730, before any other charges or credits. The supply charge makes up about 55% of that bill.

A household using 20 kWh a day on the same rates pays the same $401.50 supply charge, but has a much larger usage charge. The fixed amount represents a smaller share of its total.

For a low-use home, fixed charges can dominate the bill. That helps explain why cutting another small amount of electricity may have a modest effect. It is a reason to compare plans carefully, rather than assume the household needs to cut its use further.

Why did the bill rise after my usage fell?

Compare the old and new daily charges, usage rates and number of billing days. Lower kWh can still sit alongside a larger fixed charge or an expired credit. If an item has changed and you cannot see why, ask your retailer to explain it. If you’re with ActewAGL, we can work through that account question with you.

Compare both parts of the price

A plan with a lower daily charge may have a higher usage rate. Which is cheaper depends on how much electricity you buy.

Here are two made-up plans to show the effect. The annual calculations assume constant daily use, a 365-day year and no other charges or credits.

Plan B is cheaper for the low-use household. Plan A is cheaper for the higher-use household.

In this simplified comparison, the plans cost the same at 7.5 kWh a day. Below that level, the lower daily charge wins. Above it, the lower usage rate wins. These figures are examples, not current energy offers.

Actual offers can include time-of-use rates, demand charges, discounts and capped feed-in payments. Compare the same household usage across the full year, with all applicable charges and credits. A headline usage rate alone cannot settle the result.

Solar can reduce one part of the bill

Using electricity generated on your roof reduces the amount you need to buy from the grid. The daily supply charge generally continues while you remain connected under your plan.

Solar feed-in credits can offset bill costs, depending on exports, rates and any applicable cap. Keep them separate from electricity used directly at home. Neither a large solar system nor a low import figure guarantees that every charge will disappear.

For a property that is mostly vacant, check whether the account and connection arrangements still suit what you need. Ask your retailer about the costs and consequences before changing the connection. If your account is with ActewAGL, we can explain the options for your address.

To review your current plan, compare our available offers (opens in a new tab) using the same annual household usage. You can also take the latest bill to Energy Made Easy (opens in a new tab) for estimates across retailers, including plan charges.

Keep the comparison period identical. Use the same annual imports and exports, then include daily charges, time-of-use or demand rules, discounts and fees. A reference-price percentage describes a benchmark household; it does not replace a calculation using your own consumption.

Related advice: Why has my electricity bill gone up? · How do I compare electricity plans properly?

Compare the whole bill

Start by comparing our available plans for your address (opens in a new tab) using the same annual consumption. You can do this whether you’re already with us or another retailer. Compare the whole total, so a lower usage rate is judged alongside the daily charge and other costs.

If paying an ActewAGL bill is difficult, our Staying Connected page (opens in a new tab) explains the support route. If you’re with another retailer, ask it about payment support for your current account.

Give us a call on 13 14 93 about charges on an ActewAGL bill or our plan options. Have your latest bill beside you. For payment support on an ActewAGL account, call our Staying Connected team on 1300 138 574.

Compare the whole electricity plan