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GuidesEnergyHow to Read Your Electricity Bill: A Plain-English Guide
Energy

How to Read Your Electricity Bill: A Plain-English Guide

Decode the supply charge, usage rate, tariff type, and discount conditions so you can tell if your bill is correct — and whether you are overpaying.

7 min read
Updated 2026-07-08By James Okonkwo · Consumer finance research

Key takeaways

  • Supply charge is a fixed daily fee — you pay it even if usage is zero.
  • Usage charge is per kWh and is the main lever you control.
  • Conditional discounts only apply if you meet the conditions every billing period.

Australian energy bills pack supply charges, usage rates, discounts, solar credits, and GST into a single statement. Once you know what each line means, you can spot errors and compare plans fairly.

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On this page

1The main parts of your bill2Peak, shoulder, and off-peak3Solar feed-in credits4Benefit periods and revert ratesQFAQs

The main parts of your bill

Every bill breaks down into supply (daily connection fee), usage (cents per kWh), any discounts applied, solar feed-in credits if applicable, and GST. Match these against your Energy Price Fact Sheet to confirm you are being charged correctly.

Bill componentWhat it isComparison tip
Supply chargeDaily fee to stay connected to the networkFixed cost — you pay this even if usage is zero
Usage chargeCents per kWh (or MJ for gas) consumedMain lever you control through efficiency and tariff choice
DiscountsConditional or unconditional reductionsPay-on-time discounts often apply to usage only, not supply
Solar feed-inCredit for electricity exported to gridSeparate rate from what you pay to import — compare both
GST10% on applicable chargesShown separately on most bills

Peak, shoulder, and off-peak

On time-of-use tariffs, peak hours (typically late afternoon and evening weekdays) cost more. Off-peak periods overnight and early morning are cheaper. Shifting appliance use to off-peak can reduce bills if you are on a TOU plan.

Solar feed-in credits

If you have rooftop solar, your bill shows export credits at your feed-in tariff rate. High self-consumption households see smaller export credits but greater import savings. Compare both rates when choosing a retailer after installing solar.

Benefit periods and revert rates

Many plans offer a discounted rate for 12 months, then revert to a higher standing rate. Set a reminder to compare again before your benefit period ends — loyalty rarely gets you the best deal.

Important

If you missed a pay-on-time discount condition, your bill may show the full undiscounted rate for that period. Check whether the discount was actually applied.

General information only — not personal financial advice. Consider your own circumstances and read the Product Disclosure Statement (PDS) before purchasing any policy. Moneyhero may earn referral fees from some providers when you switch through us; this does not change how results are ordered. How we compare

Frequently asked questions

Bill terminology, discount conditions, and solar credits — common questions answered.

  • What is the difference between peak and off-peak electricity?

    Under a time-of-use tariff, peak hours (typically late afternoon to early evening on weekdays) are priced higher because demand on the network is greatest then. Off-peak periods (overnight, early morning, often weekends) are cheaper. Shifting appliances like dishwashers, washing machines, and EV chargers to off-peak times can reduce your bill if you are on a TOU tariff.

  • Why does my bill show an estimated read?

    If you have a basic (accumulation) meter that requires a physical visit to read, the distributor may estimate usage between scheduled read dates. If an estimate looks significantly different from your usual usage, contact your retailer — a corrected actual read can be requested.

  • How do conditional discounts work?

    A conditional discount (for example 'pay on time') is deducted from your bill only if you meet the stated condition in that billing period. If you miss a payment or pay late, the full undiscounted rate applies for that period. Some retailers offer unconditional discounts that apply regardless — these are more reliably valuable.

  • What does 'benefit period' mean on an energy plan?

    A benefit period is the duration for which a discount rate applies — typically 12 months. After the benefit period ends, the plan may revert to the standing offer or a higher underlying rate. Always check what your plan reverts to at the end of the benefit period and set a reminder to compare again before that date.

Back to Energy guides

On this page

1The main parts of your bill2Peak, shoulder, and off-peak3Solar feed-in credits4Benefit periods and revert ratesQFAQs

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