Energy Tips
Received a Rate Change Notice? Here’s What It Means
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Important Points
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A rate change notice is your energy provider’s formal warning that your daily supply charges, usage rates, or solar feed-in tariff will soon change.
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Even small increases, like a few cents per kWh or per day, can add up to hundreds of extra dollars depending on your usage and tariff type.
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Reviewing your notice and comparing plans before the change takes effect can help you avoid paying more than you need to.
If you’ve received a rate change notice, don’t ignore it. It could mean you’re about to start paying more for your electricity. These notices aren’t just routine updates either; they often point out a change in your plan that could impact your bill. Understanding what’s in the notice and knowing what to do next can help you stay in control and avoid unnecessary costs. Here’s what to look out for.
What is a Rate Change Notice?
A rate change notice is a formal message from your electricity or gas provider letting you know that your energy rates are about to change, either going up or down. These notices are usually sent via your preferred communication method (like email, post, or even your provider’s mobile app).
The notice outlines the exact date of the change, along with a side-by-side comparison of your current rates and the new ones, inclusive of GST. That way, you can clearly see how the changes will affect your bill. If you have solar, the letter may also include changes to your feed-in tariff.
In short, this is your heads-up. It gives you time to understand how your bill might change and, more importantly, take action, whether that’s reviewing your usage, comparing providers, or switching plans altogether.
Your notice should outline:
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The new daily supply charge (a fixed daily cost to stay connected to the grid)
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Changes to your electricity or gas usage rates (charged per kilowatt-hour or megajoule)
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Adjustments to solar feed-in tariffs (if applicable)
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The exact date your new rates will begin
Keep in mind, even if your notice shows a small rate increase, they can add up significantly over time. For example, a 20-cent increase in your daily supply charge could add more than $70 annually. If your usage rate rises by 5 cents per kWh, you could be paying hundreds more per year, especially if you have a household full of high energy users. The trouble is, many people miss these changes and don’t realise until their next bill arrives.
1When & How Will I Be Notified?
According to the Australian Energy Market Commission (AEMC), energy retailers must give customers five business days’ notice before increasing or decreasing rates¹. This applies to all small retail energy customers on either market or standing offers.
There are some exemptions to this, however. For instance, you may not get an advance notice if you’ve recently signed a new contract and already received a price change letter².
If you receive bills and updates via email, your rate letter will likely come through that channel. Otherwise, it may arrive by post or be accessible via your online portal.
Your first bill after the change will often reflect the updated charges and usually include a message to highlight the changes.
Rate change notices don’t always jump out at you; in some cases, they’re hidden behind vague subject lines and generic sender names, making them easy to miss if you’re scrolling through your inbox.
Instead of something obvious like “We’re raising your prices,” you’re more likely to see subject lines such as:
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“Important update to your electricity plan”
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“Changes to your energy rates”
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“An update on your account”
Expert Tip
If your retailer has an app, download it. Many now offer real-time alerts when rate changes are scheduled, making it easier to stay informed.
How Do I Work Out What a Rate Change Means for My Bill?
Seeing new rates in a letter or email is one thing, but what does that actually mean for your electricity bill? For this example, we’ll look at a hypothetical rate increase for a residential household with average usage and no solar system installed.
1. Find your usage (kWh):
Check your last bill and note your total peak and off-peak usage.
Example:
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Peak usage: 400 kWh
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Off-peak usage: 200 kWh
2. Find your old usage rates:
Look for the rates you were paying before the change. They’ll usually be listed in cents per kWh for each period (peak/off-peak).
Example:
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Old peak rate = 30 c/kWh
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Old off-peak rate = 20 c/kWh
3. Find your new usage rates:
Check your rate change notice for the updated rates.
Example:
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New peak rate = 33 c/kWh
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New off-peak rate = 22 c/kWh
4. Multiply your usage by each rate to compare:
Rate Type | Formula | Cost |
|---|---|---|
|
Old Peak Usage |
400 kWh × $0.30 |
$120.00 |
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New Peak Usage |
400 kWh × $0.33 |
$132.00 |
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Difference |
$132.00 – $120.00 |
+$12.00 |
Rate Type | Formula | Cost |
|---|---|---|
|
Old Off-Peak Usage |
200 kWh × $0.20 |
$40.00 |
|
New Off-Peak Usage |
200 kWh × $0.22 |
$44.00 |
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Difference |
$44.00 – $40.00 |
+$4.00 |
5. Check the daily supply charge:
This is the daily fee you pay for being connected to the grid, shown on your bill as “Daily Supply Charge.”
Example: Old rate = $1.10 per day
Example: New rate = $1.20 per day
Multiply by the number of days in your billing period (let’s use 90 days for a quarterly bill):
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Old rate: 90 days × $1.10 = $99.00
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New rate: 90 × $1.20 = $108.00
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$108.00 – $99.00 = +$9.00
So, based on the figures above, you’ll be paying $9.00 more per billing period for your new supply charge.
Total Change to Your Bill Due to the Rate Change Increase
Once the rate change officially comes into effect, the new bill amount would be $284.00, which is $25.00 more than what the customer was paying before the rate change.
3What Can I Do Next?
Use this notice as a cue to review your plan and compare others in the market. Look at your usage rate, supply charge, solar feed-in tariff, and any available sign-up discounts or contract terms.
If you’re unsure about what the changes mean and want to avoid bill shock, give our experts a call at 1300 232 848. We’ll break down the changes, do a bill-to-bill comparison, and compare plans so you get a tailored plan that’s suited to your budget and usage profile.
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.
