Frequently Asked Questions: Gas and Electricity Tariffs

•What is an electricity tariff, and what are its main components?

An electricity tariff is a pricing structure determining how much you are charged for consuming electricity. The main components include: Fixed Rate Tariffs (a flat fee per unit), Time-of-Use Tariffs (variable rates based on peak, off-peak, and shoulder periods), Demand Tariffs (charges based on peak electricity demand), a Supply Charge (daily fee for grid connection), and a Metering Charge (fee for meter maintenance).

•How do Time-of-Use tariffs work, and who can benefit from them?

Time-of-Use (ToU) tariffs vary electricity prices depending on the time of day. Peak periods (daytime/evening) have higher rates, while off-peak times (overnight) are cheaper, with a shoulder rate in between. Businesses that can shift energy-intensive activities to off-peak hours can significantly reduce costs using ToU tariffs. Examples of Time-of-Use tariffs include T12, T33, or T31.

•What is a Controlled Load Tariff, and what type of appliances is it suited for?

Controlled Load Tariffs, like T31, apply to specific appliances, such as water heaters or pool pumps, that operate during off-peak hours. Energy consumed by these appliances is charged at a lower rate, allowing businesses and homes to reduce costs by scheduling their use during low-demand times.

•What is a Demand Tariff, and why would a business choose this type of tariff?

A Demand Tariff, commonly listed as T20, charges businesses based on their highest power demand during a billing period, in addition to their 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.

•How do electricity tariffs typically appear on an electricity bill?

An electricity bill typically shows a breakdown including a daily Supply Charge (a fixed fee), Usage Charges categorised by time of use (peak, off-peak, or shoulder rates), and potentially solar export credits. The bill will also specify the period the charges cover, the price per unit (kWh), and the total amount due for each component. Government relief credits may also be listed.

•How does a gas tariff work, and what is the difference between seasonal and non-seasonal gas rates?

A gas tariff determines how much you pay for the gas you consume, typically measured in megajoules (MJ). Seasonal gas rates are higher during winter due to increased heating demand. Non-seasonal rates remain consistent throughout the year, which can benefit businesses with steady gas usage.

•How do gas tariffs typically appear on a gas bill?

A gas bill usually includes a daily Supply Charge for connection and Usage Charges based on peak (winter) and off-peak (non-winter) consumption. The bill breaks down the charges by period, price per MJ, quantity consumed, and the total amount due, often separating charges into "steps" to account for varying rates after certain thresholds are met.

•How can Termina help businesses optimise their energy tariffs?

Termina offers automated monitoring and proactive tariff recommendations. They analyse a business's energy usage data to identify savings opportunities and facilitate tariff changes. This simplifies the tariff selection process, ensuring businesses obtain the most cost-effective energy plan.