Knowing All about the Two Key Charges in Your Electricity Bill

We understand that the power prices for the residential sector have shot up by as much as 63 % in the past ten years or so. However, the ACCC finally, has come up with the reason why there has been such a hike in energy costs and why all of us have been extorted so far. While browsing, we find a report that was released by the ACCC regarding โ€˜retail electricity pricingโ€™. As per the report, the chief reason for the constant surge in electricity prices has been because of the expenses involved in the transmission network maintenance or for the constant upkeep of electrical poles and wires. Moreover, due to relatively greater wholesale prices and retail margins we witnessed constant increments in the electricity prices. 

You must have come across two major costs in your electricity bills- the usage charges, as well as, the supply charges. Let us explore what are these charges all about and effective ways of keeping them under control.

What Do You Understand by Usage Charges

Usage charges could be understood easily since it refers to the electricity price that is paid by you for the total number of electricity units consumed by you. This is usually stated as c/kWh or cents/ kilowatt hour. We understand that usage charges could be categorized under diverse bands as per a specific electricity price plan.ย  You may browse through – Texas to learn more about ways to enjoy the lowest electricity rates.

Ways to Reduce Usage Charges

You must consider controlling your overall consumption of electricity for effectively reducing usage charges. Follow effective tips for slashing usage of electricity for running your household. You may make slight modifications to your overall energy consumption patterns. Buy and use energy-efficient devices and appliances for cutting down energy costs. Choose a perfect energy plan that is accompanied by hefty discounts on specifically usage charges. Alternatively, you could opt for a pricing plan that is flexible enough to allow you to enjoy lower payments for bulk consumption of electricity during non-peak hours.

What Do You Understand by Supply Chargesย 

Supply charges imply the fixed price that compulsorily needs to be paid for enjoying electric supply to your residence irrespective of the actual power consumed by you. We understand that supply charges are actually dependent on the specific electricity distributor doing the electricity transmission job. Supply charges seem to be a fixed component in your electricity bill.

This would be billed as dollars/billing period or maybe cents/day. Hence, if you are following a specific energy plan at 75 cents/ day in terms of the service fee, you would need to make a payment of $88 /quarter despite vacationing out with family and no energy consumption whatsoever.

Ways to Reduce Supply Charges

You would come across numerous electricity discounts on usage charges exclusively but there are some electricity providers who may offer certain discounts on supply charges as well. You must examine the precise discount offered to you while making a comparison of energy plans. For instance, remember a discount of 10 percent on your supply and usage charges could prove to be a more profitable deal as compared to a discount of 18 percent on only usage charges. Choose the best plan if you wish to reduce your supply charges.


You could choose the best energy provider that is willing to offer you relatively lower supply charges. You could use advanced comparison tools for identifying the most cost-effective electricity plans.