We all receive our energy bill every quarter - for me my hands tremble at the mere thought of opening the envelope. I am preparing myself for the shock of the ever increase energy costs! Then I wonder how it could possibly be that high?
The second nightmare is how on earth I read the bill, then try and interpret it so that I could try and reduce usage so I can attempt to make savings or reduce the cost.
Here are some tips for better understand your energy bill.
Energy Tariffs
Both electricity or gas bill comprise of both fixed and variable charges:
- Fixed charges: usually referred to as ‘daily supply ‘or ‘Service to property’ and you will ay a price in cents per day
- Variable charges: Usually know as ‘usage’ or ‘consumption’ charge. It is the amount you pay for each unit of gas or electricity listed as cents per kilowatt hour(c/kWh.)
Some of the most common tariffs you might encounter include:
- Single rate
- Time of use and flexible pricing
- Block rate
- Controlled load
- Feed-in tariff
Fees and charges
As well as fixed and variable charges, energy contracts can include several additional fees charges such as:
- Pay on time discount
- Direct debit discount
- E-mail correspondence discount
- Online sign up discount
Cheap Electricity Deals
I suggest you contact your energy provider and ask, is this the best plan or discount for me and my usage of electricity? Take the time to compare energy plans or switch providers but make sure you read and understand the small print and plan.
Information available from https://www.canstarblue.com.au is great for comparing electricity plans, as well as keeping up with price and discount changes from the energy providers.
Disclaimer: CCadvice is an official Cancer Council NSW account, featuring regular content from the financial assistance team.
