Understanding the structure of gas and electricity tariffs can be the key to optimising energy costs for businesses. Whether you're running a small retail shop or managing a multi-site business, selecting the right tariff can make a significant difference to your bottom line.

This guide explains the basics and helps you navigate various tariffs in Australia and how Termina will help you find the most cost-effective plan.

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What is an electricity tariff?

In a nutshell, an electricity tariff is a pricing structure that dictates how much you are charged when consuming electricity.

In Australia, tariffs are determined by when and how you use energy and often depend on factors like meter type, location, and consumption levels.

Here's a quick breakdown of common components:

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• Fixed Rate Tariffs: A flat fee per unit of energy, regardless of the time of use.
• Time-of-Use Tariffs: Variable rates depending on peak, off-peak, or shoulder periods.
• Demand Tariff: Charges based on your peak electricity demand.
• Supply Charge: A daily fee for maintaining your connection to the grid.
• Metering Charge: A fee for maintaining the meter that records your energy use.

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How Termina Can Help

At Termina, we will help you select the right tariff, ensuring you don’t overpay due to poor tariff choices. We analyse your usage data and automatically identify savings opportunities, simplifying tariff selection and change requests.

How does it affect your bill?

Electricity tariffs directly impact your energy bill by influencing the rates you pay throughout the day. For example, businesses operating outside peak periods can benefit from time-of-use or controlled load tariffs. Switching to a more suitable tariff can lead to significant savings.

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Types of electricity tariffs

Single Rate Tariff (Flat Rate)

A Single Rate Tariff, also known as Tariff 11 (T11), charges the same rate for electricity regardless of the time of day. It’s simple and predictable, making it ideal for households or businesses with consistent energy use throughout the day.

Time-of-Use Tariffs

Time-of-use tariffs, like T12, T33, or T31, vary the electricity price based on when you use it. Peak periods, like daytime or evening, have higher rates, while off-peak times, like overnight, are cheaper. There’s also a shoulder rate, which is priced in between. This tariff benefits businesses that can shift energy-intensive activities to off-peak hours for cost savings.

Controlled Load Tariff (Off-Peak Tariff)

Controlled Load Tariffs, such as T31, apply to specific appliances like water heaters or pool pumps that run during off-peak hours. The energy used is charged at a lower rate, helping businesses or homes reduce costs by scheduling certain appliances to operate when demand is low.

Demand Tariff

A Demand Tariff, commonly listed as T20, charges based on the highest power demand during a billing period in addition to regular electricity usage. Businesses with large or variable power needs, such as factories or large offices, often use this tariff to monitor and manage peak energy demand to lower costs.

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How will electricity tariffs appear on your bill?

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Charge Details

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In South Australia, where unit prices are generally higher, the breakdown on your electricity bill will typically show:

• Supply Charge: Daily fixed fee.
• Usage Charges: Categorised by time of use (peak, off-peak) or demand-based rates.
• Example: A previous peak rate of $0.48/kWh could be reduced to $0.428/kWh by switching tariffs, leading to significant savings.

Termina automatically identifies and facilitates tariff changes, reducing hassle and maximising savings.

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What is a gas tariff?

A gas tariff works similarly to an electricity tariff but focuses on how much you pay for the gas you consume, usually measured in megajoules (MJ).

What’s the difference between seasonal and non-seasonal gas rates?

Gas is typically charged higher during winter due to increased demand for heating. Non-seasonal rates remain consistent throughout the year, which can be beneficial for businesses with steady usage.

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How will gas tariffs appear on your bill?

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Your gas bill will show:

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• Supply Charge: Daily fee for connection.
• Usage Charges: Based on peak (winter) and off-peak (non-winter) consumption.

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Optimise your tariffs with Termina

As this blog has shown, managing energy tariffs can be confusing. However, Termina is here to help! With automated monitoring and proactive tariff recommendations, we take the guesswork out of energy savings, ensuring you get the best rates for your business.

Ready to find your ideal energy tariff? Contact Termina today to discover how we can save your business time and money.

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Electricity tariffs in detail

Each state in Australia has different distribution networks and tariff structures:

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New South Wales (NSW)

Ausgrid: Sydney, Central Coast

Endeavour Energy: Western suburbs of Sydney

Essential Energy: Regional and rural NSW

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Victoria
Powercor: Western Victoria

CitiPower: Melbourne CBD and suburbs

United Energy: Southeast Melbourne

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Queensland
Energex: Brisbane, Gold Coast

Ergon Energy: Regional Queensland

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South Australia
SA Power Networks: Adelaide and regions

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Western Australia
Western Power: Perth and surrounding regions

Tasmania
TasNetworks: Entire state

Northern TerritoryPower and Water Corporation: Darwin and regions