The two charges on every bill
Every electricity bill is built from two things: a daily supply charge and a usage charge. The supply charge is a fixed amount you pay for every day you are connected — typically 90c to $1.30 a day — whether you use any power or not. The usage charge is what you pay for the electricity you actually consume, measured in cents per kilowatt-hour (c/kWh).
A cheap-looking usage rate paired with a high daily supply charge can easily cost more than a plan with a slightly higher usage rate and a low supply charge. That is exactly the trap EnergySorted is built to see through — it costs both together against your real usage.
Key terms, in plain English
- Supply charge
- A fixed daily fee for being connected to the grid (c/day), independent of how much power you use.
- Usage rate
- The price of the electricity you use, in cents per kilowatt-hour (c/kWh).
- kWh (kilowatt-hour)
- The unit electricity is sold in. A 1000W heater running for one hour uses 1 kWh.
- Single rate tariff
- One flat usage rate at all times of day. Simple and predictable.
- Time-of-use (TOU) tariff
- Different rates for peak, shoulder and off-peak periods. Rewards shifting use to off-peak (usually overnight).
- Controlled load
- A separately metered circuit (often hot water or slab heating) charged at a lower rate because the network controls when it runs.
- Feed-in tariff (FiT)
- What your retailer pays you per kWh for solar power you export to the grid.
- Demand charge
- An extra charge based on your highest 30-minute power draw (in kW) during a period. Common on some plans; hard to predict.
- Discount (guaranteed vs conditional)
- Guaranteed discounts always apply; conditional ones (e.g. pay-on-time) only apply if you meet the condition.
Why your bill can jump
Bills rise for four common reasons: seasonal usage (heating and cooling), a benefit period ending (many market offers discount for 12 months, then step up), a rate change from your retailer, or a change in your tariff type. If your bill jumped without your usage changing, your rate almost certainly did — that is the moment to compare.