Electricity users who consume in excess of 160,000 kWh/pa ($40,000 approximately), and are on an unbundled agreement, will find a section labeled “Network Charges” on their bill.
The Network Charges cover the costs to maintain the grid infrastructure and the transport of the electricity from electricity generators across the electricity transmission and distribution networks to your site.
Network Charges generally account for 50 percent of a typical bill. They are reviewed on an annual basis and adjusted to reflect the costs of maintaining and upgrading the system.
The Australian Energy Regulator (AER) oversees networks and monitors compliance within the National Electricity Laws and Rules.
When are they reviewed?
Network charges are reviewed annually.
From the 1st July electricity users in New South Wales, Queensland, South Australia, ACT and Tasmania experience a change in their network charges.
Victorian electricity users experience these changes effective 1st January each year.
How are network charges billed?
Network charges are billed under various regulated tariffs published by the networks. The charges will typically relate to:
- Consumption – how much electricity you use and at what times you use it.
- Demand/Capacity – the maximum amount of electricity you use or are allocated at one time.
- Access – a connection fee to the network calculated daily.
Network costs vary from tariff to tariff for each of the network providers. Your new network costs will be determined by applying your site-specific consumption and demand to the newly approved regulated tariff assigned to your site.
When will you know the impact of these increases on your bills?
The final details of the increases will be published by each individual network operator a couple of weeks before they become effective.