Energy Tips
How to Read Your Energy Bill
Your bill could be a gateway to savings. Here’s what you need to know.
- What Answers You’ll Get On This Page
Important Points
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Reading and understanding your energy bill can offer valuable insight on your usage, how you’re being charged, and whether your current plan is offering the best value for your money.
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Reviewing your bill regularly can help you determine whether your current energy plan still offers the best value or if you could save money by switching to a different provider or plan.
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If you have solar panels, your bill will show how much electricity you’re exporting back to the grid and how much you’re earning in feed-in credits.
Ever opened your electricity bill and wondered how it got so high, or what all those numbers even mean? You’re not the only one.
In this guide, we’ll take you step by step through what each section means, why it’s important, and how you should interpret this information.
1. Account & Billing Overview
Source: AGL, https://www.agl.com.au/help-support/billing-payments/read-your-bill
Please note that we’ve included a sample bill from AGL for illustrative purposes. The appearance, terminology, and structure of your energy bill may differ from your own.
At the top, you’ll generally find your account details (name, address, account number, and National Metering Identifier).
On the same page, the due date and amount due or total payable (including GST) will typically be highlighted.
Source: AGL, https://www.agl.com.au/help-support/billing-payments/read-your-bill
12. Payment Details
Some retailers will have a dedicated section that shows all the different ways you can pay (e.g., BPAY, direct debit, credit card, Centrepay, by mail, PayPal, etc.) so you can see what options are available to you.
Payment processing fees, like charges for paying by credit card or debit card, are usually listed in this section or lower on your billl. These fees are clearly labelled and may be itemised with the payment method used (e.g. “Visa/Mastercard payment fee”). Not all retailers charge these fees, but when they do, they are disclosed in your energy plan’s terms and shown separately on your bill.
Expert Tip
Set up automatic payments (like direct debit, BPAY View, or Centrepay) to avoid late fees and missed bills. However, regularly check your transactions and account balance to make sure there are no errors, overdrafts, or duplicate charges.
Source: AGL, https://www.agl.com.au/help-support/billing-payments/read-your-bill
23. Plan Summary
The Plan Summary section of your electricity bill gives you an overview of the energy plan you’re currently on. It’s basically a snapshot of the key details of your agreement with your retailer, and understanding what’s listed here can help you stay informed about your rates, fees, and whether you might be due for a better deal.
Here’s what you can typically expect to find in this section:
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Name of your plan: This is the specific product name assigned by your energy retailer (e.g. “Value Saver”, “Residential Market Offer”).
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Contract details: This section may outline if you’re on an ongoing contract or a fixed-term plan, including the contract start date and end dates.
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Rates and Charges: This section provides an overview of the usage rates and supply charges associated with your plan. Many retailers offer a detailed breakdown that is found lower on your bill.
Source: AGL, https://www.agl.com.au/help-support/billing-payments/read-your-bill
34. Bill Breakdown (Understanding Your Bill)
This section will typically display an itemised list of all charges, including:
Supply charge
This is a fixed daily fee that you pay simply for being connected to the electricity network, even if you don’t use any power on a given day. It helps cover the cost of maintaining the infrastructure, like poles, wires, and meters, that deliver electricity to your home. It’s usually displayed as a daily rate and added up over the billing period.
Usage charge
Usage charges are what you pay for the actual electricity or gas you use in your home. They’re usually measured in kilowatt-hours (kWh) for electricity and megajoules (MJ) for gas. The more energy you use, the higher this part of your bill will be. Depending on your plan, you might pay different rates at different times of the day (like peak and off-peak times).
You may see different rates applied depending on your tariff type:
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Flat rate: One consistent rate for all electricity used, regardless of the time of day.
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Time-of-use (ToU): Charges vary based on when you use electricity, higher rates during peak hours (typically evenings), and lower during off-peak or shoulder periods.
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Controlled load: A separate rate for specific appliances (like electric hot water systems) that run during set off-peak times.
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Demand: Often shown as a ‘demand charge’, demand tariffs are calculated based on the highest amount of electricity used during a specific time period (peak periods), and are usually measured in 30-minute blocks. These periods vary based on the area you live or the time of year.
You may also see the billing period, which indicates the specific dates for which you’re being charged for electricity usage. It also shows whether the charges are based on an actual meter reading or an estimated one (additional meter reading details can be found in the ‘Meter Details’ section on your bill).
Expert Tip
If you’re on a time-of-use tariff, try shifting your high-energy activities to off-peak hours when electricity is cheaper. For example, run your dishwasher or washing machine later in the evening, just before bed, instead of during peak times like right after dinner.
Solar feed-in tariff (FiT)
If you have solar panels installed and your system exports excess electricity back into the grid, you’ll likely receive a solar feed-in tariff (FiT), which is a credit that appears on your energy bill. This credit helps offset your energy usage costs and, depending on your system size, solar feed-in tariff rate, and export habits, can offer a reduction in your energy bill.
On your bill, you’ll find solar feed-in tariff details listed in the charges and credits section, or grouped under a heading like “solar feed-in”, “solar credit”, or “renewable energy export”.
Some terms may include things like:
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Exported kWh: This is the total amount of electricity your solar system exported to the grid during the billing cycle. It’s measured in kilowatt hours (kWh).
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FiT rate: This is the amount your energy retailer pays you per kWh of solar exported. For example, if your FiT is 7.5 cents per kWh and you export 300 kWh, you’ll receive a $22.50 credit.
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Total solar credit: The dollar value credited to your account for the energy exported. This reduces your total amount owed.
Adjustments, Discounts, Concessions, and additional fees
Your bill might include other charges, such as:
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Late Payment Fees: If you don’t pay your bill by the due date, your retailer may charge a late fee.
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Meter Access or Service Fees: You might be charged if a technician can’t access your meter. For example, if a gate is locked or there’s a safety concern like a dog on the property.
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Reconnection or Disconnection Charges: If you’re moving house, switching providers, or have been disconnected due to non-payment, there may be fees to reconnect or disconnect your service, or to complete a final meter read.
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Estimation Adjustments: If a previous bill was based on an estimated reading, your next bill may include an adjustment based on an actual read. An adjustment is important to ensure your charges reflect your actual energy usage.
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Administration Fees: Some retailers apply small administrative charges for things like paper billing, credit card payments, or processing special service requests.
Government concessions
Eligible customers, such as pensioners, veterans, or low-income households, may receive financial support in the form of rebates or concessions. These are applied directly to your bill as a credit. The specific type and amount vary by state and eligibility.
Discounts
Some plans include discounts that can either be percentage-based or fixed dollar amounts. Be aware that some discounts only apply under certain conditions, so check your contract to see the full details and eligibility requirements.
Source: AGL, https://www.agl.com.au/help-support/billing-payments/read-your-bill
45. Usage Graph, Solar Export & Benchmarking
Some retailers will include a usage graph, which is a visual representation of how much electricity your household uses over time and, for solar households, how much is exported back to the grid.
Here’s what you could find on these graphs:
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Usage bars track the total electricity drawn from the grid during each billing period.
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Export bars (for solar customers) show how much solar energy was sent back into the grid.
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Average daily metrics: This includes things like your average daily consumption (in kWh) for the current period, a comparison to the same period last year that highlights your year-to-year changes and/or your average daily export (applicable for solar owners).
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Greenhouse gas emissions (where provided): Often represented as a line or overlay, translating your usage into emissions.
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Benchmark data (depending on the retailer): A comparison of your household’s usage versus other homes of similar size in your area.
This part of your bill, when available, is packed with useful insights. It shows whether you’re using more or less energy compared to the same time last year, which can help you track any changes in your habits.
If you’re a solar owner, you’ll also see how much energy you’re sending back to the grid, so it’s a great way to check if your system is getting the maximum value based on its output and your feed-in tariff rate.
The graph can also help you spot spikes in usage, like heat waves during the summer or cold snaps during the winter. Additionally, it can also point to energy-intensive appliances or habits that are quietly pushing up your bills.
Another great component of this graph that many retailers are adding is a visual comparison of your energy usage compared to other households in your area. This gives you a sense of whether your usage is high, average, or low, and whether there might be room to cut back.
56. Meter Readings
Your bill will indicate whether readings are actual (recorded) or estimated.
An actual meter read is a precise measurement of how much energy your household has used in a given billing period. This is taken either in person or remotely if it’s a smart meter. This type of reading is the most accurate way to measure your usage.
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According to the Australian Government, either your retailer or distributor will arrange for a meter reader to visit your property. By law, an actual meter read must occur at least once every 12 months, though it usually takes place around the time your bill is due.
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If you have a smart meter, it automatically sends usage data back to your provider; no need for someone to visit your home.
Expert Tip
In some cases, you can submit your own meter reading through your energy retailer’s app or online portal. This means your bill can be based on your actual usage instead of an estimate.
Source: EnergyAustralia, https://www.energyaustralia.com.au/home/bills-and-accounts/understand-your-bill/bill-guides
Important Messages
Some energy retailers include a dedicated section on your bill for important messages or updates. This might include reminders about changes to your rates during the billing period or notices about concessions and discounts currently applied to your account. For instance, as shown in the example above, EnergyAustralia is showing what concessions and discounts are applicable to this consumer’s bill.
6Frequently Asked Questions
- Why does my energy bill look different from someone else’s?
Each energy retailer designs their bill differently, so layouts, headings, and terminology can vary. However, all bills must include information such as your usage, supply and usage charges, billing period, total cost, and meter reading type.
- Why does my bill show multiple rates for electricity usage?
If you’re on a time-of-use tariff, your electricity is charged at different rates depending on the time of day. Your bill should clearly break down how much electricity you used in each time block and what rate was applied.
- What happens if I move home or change energy providers?
When you move or switch providers, final meter readings are taken to calculate your last bill. Your new provider may also send you an initial estimated bill until your first actual meter reading is available.
- How do I lower my energy bill?
Review your energy plan and see if you’re on a good rate. This could save you a good amount of money, especially if you’ve been on the same plan for a while. According to the Australian regulator ACCC, over 80% of households connected to the National Electricity Market (NEM) could be overpaying for their energy. That means if you haven’t checked your energy plan in a while, there’s a good chance you’re paying more than you need to, possibly hundreds of dollars a year, just for sticking with the same provider. Check out our Residential Electricity page to compare the best offers in your area.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
Sources:
¹Australian Energy Regulator (AER), Final Determination 2025–26 Safety Net Prices for NSW, SA and SE QLD. https://www.aer.gov.au
²Australian Competition & Consumer Commission (ACCC), National Electricity Market December 2024 Report.
https://www.accc.gov.au/system/files/accc-national-electricity-market-december-2024-report.pdf
³Australian Energy Regulator (AER), Annual Retail Market Report 2023–24 – Charts and Data.
https://www.aer.gov.au/documents/annual-retail-market-report-2023-24-charts-and-data
⁴Essential Services Commission (ESC), Victorian Default Offer Price Review 2025–26. https://www.esc.vic.gov.au
