Understanding Electricity Tariffs

Understanding Electricity Tariffs

In order to take control of your power bills, a necessary step is to understand the tariffs you are using and their purpose. To help you with this, we’ve got a simple explanation of the most common tariffs to make sure you have chosen the right tariff for you.

In most cases, customers in both regional and rural Queensland are on a generic retail contract, which sees them paying regulated retail electricity tariffs that are set by the Queensland Competition Authority (QCA).

The most common tariffs are as follows.

General supply tariffs

These are the most common tariffs for residential properties, with the average consumer being hooked up to Tariff 11. Under this tariff, electricity is provided at a flat rate per kilowatt hour, and a daily service fee is charged. It is intended for general residential usage and is appropriate for a majority of households.

Time-of-use tariffs

As the name suggests, time-of-use tariffs have different pricing depending on the time the electricity is used. On Tariff 12 and Tariff 13, you pay for the electricity you use at different rates throughout the day. In addition to this, you also pay a daily service fee.  A time-of-use tariff may suit households using a lot of power, or those who can use a good proportion of their electricity outside the peak period. The peak period is weekdays from 4pm to 8pm.

Economy tariffs

Economy tariffs are for appliances. Tariff 31 and Tariff 33 can be used for hot water systems, pool pumps, etc.  that do not need a non-stop electricity supply. You pay for what you use at a flat rate which is cheaper than Tariff 11. There is also no service fee.

Solar feed-in tariff

The solar feed-in tariff is for eligible customers who own a solar PV system. Under the Solar Bonus Scheme from the Queensland Government, customers are paid a feed-in tariff for the surplus electricity generated from their systems which is sent back to the Queensland electricity grids. As a result of legislation changes, the feed-in tariff is now 6.53 cents per kilowatt hour.

Source: Ergon

If you would like to know more about tariffs and how they work, please do not hesitate to contact us on 0475 415 414 or email us at [email protected].