Electricity bills can be confusing — packed with tariffs, charges, and terms that don’t always make sense at first glance. This guide is designed to help you cut through the noise. We’ve broken down a sample electricity bill / invoice, explaining what each section means and how it affects your costs.
You’ll also find a glossary of common terms and line items that often appear on bills. Some apply nationally, while others are specific to certain States. Keep in mind, the exact charges on your own invoice may differ, but the structure is much the same.
Use this guide as a reference only, whenever you review your bill. By knowing what to look for, you’ll be able to spot hidden costs, check for errors, and make more informed decisions about your energy use and contracts.
Meter type (basic, interval, or smart meter).
NMI and meter usage by Peak, Off-Peak, and Shoulder periods.
Total usage for the billing cycle.
DLF and MLF factors, which adjust for energy lost during transportation.
Demand information, if demand charges apply.
This section explains the network charges you’re likely to see on your invoice.
Network charges typically fall into three groups:
Network Usage Charges
Network Fixed Charges
Network Demand Charges
(only applies where your distributor has placed your site on a demand tariff)
These relate to the amount of electricity transported to your site, and represent the distributor’s component of usage charges (separate from your retailer’s energy charges).
Some distributors use a block structure. For example, the first 0–333 kWh might be billed at one rate (Network Peak – block 1) and the balance at a different rate (Network Peak – block 2). On your invoice, you would see “Network Peak” appear twice to reflect the two blocks billed.
In most other cases, time-of-use (TOU) periods apply (e.g., Peak and Off-Peak, or Peak / Shoulder / Off-Peak). To confirm which structure applies to your site(s), contact your retailer or your broker.
VIC & SA
You’ll most commonly see a combination of:
Network Peak
NSW
You may see a combination of:
Network Peak
Network Shoulder
Network Off-Peak
Network High-Season Peak
Network Low-Season Peak
QLD
Common labels include:
TUOS Peak Energy
TUOS Off-Peak Energy
DUOS Peak Energy
DUOS Off-Peak Energy
Notes:
TUOS = Transmission Use of System; DUOS = Distribution Use of System.
TOU windows and seasonal definitions vary by distributor and tariff.
These are daily or monthly supply charges that do not change with how much electricity you use. A typical example is a Network Access Charge (a per-day fee for being connected to the network).
Why demand matters…
Distributors need to understand how much power your site can draw at once and when you draw it. Your maximum demand (highest kW or kVA over a defined 15- or 30-minute interval) helps them plan enough capacity so all customers can be supplied safely and reliably.
As a guide, higher maximum demand generally leads to higher network charges.
Demand charges may be calculated from:
The highest measured interval in the billing period (Actual Demand), and/or
The highest measured interval in the preceding 12 months (Rolling Demand), and/or
A fixed contracted level agreed with the distributor (Contract Demand).
They exist to encourage efficient use of the network—particularly during peak system periods. Demand is measured 24/7, but not always charged 24/7; your demand tariff defines when demand charges apply.
Actual Demand
Based on the maximum recorded demand (kW or kVA) at your site in any 15- or 30-minute interval within the billing period.
Rolling Demand
Based on the maximum recorded demand (kW or kVA) in the last 12 months, including the current billing period.
Contract Demand
Based on a fixed kW or kVA value set by your distributor (your “contracted demand”).
Your distributor determines which category (or combination) applies at your site. In some areas only Actual applies; in others, Actual + Contract may apply. Speak with your broker if a tariff review could place you on a more suitable structure for your load profile.
Distributors name and apply demand charges differently. Charges may be calculated daily or monthly. Common labels include (measured in kW or kVA):
Actual Demand
Annual Demand
Additional Demand
Capacity Charge
Contract Demand
Peak Demand
Off-Peak Demand Charge
Shoulder Demand Charge
Summer Demand
Winter Demand
DUOS Peak Demand
DUOS Threshold Demand
TUOS Peak Demand
TUOS Threshold Capacity Charge
Network High-Season Demand
Network Low-Season Demand
Power factor tip: If billed in kVA, a low power factor can increase measured demand (kVA > kW), lifting costs. Power-factor correction may reduce charges.
(Values and labels below are illustrative only. Your bill will reflect your specific tariff, windows, and loss factors.)
Energy Charges
| Period | Days | Quantity (kWh) | Rate ($/kWh) | Rate (incl. losses) ($/kWh) | Charge ($) |
|---|---|---|---|---|---|
| Peak | — | 327,452.146 | 0.113003 | 0.115429 | 37,797.47 |
| Shoulder | — | 621,598.081 | 0.113003 | 0.115429 | 71,750.44 |
Quantity shows the energy used in each TOU period.
Rate is the base rate per kWh.
Rate (incl. losses) includes DLF × MLF (distribution and marginal loss factors).
Charge = Quantity × Rate (incl. losses).
Loss factor example:
If MLF = 1.0041 and DLF = 1.0173, the total loss factor is 1.0041 × 1.0173 = 1.021471.
Rate (incl. losses) = Base Rate × Total Loss Factor
= $0.113003 × 1.021471 = $0.115429/kWh.
Then, for Peak period:
Charge = 327,452.146 kWh × $0.115429 = $37,797.47.
Network Charges
| Line item | Days | Quantity | Rate | Rate (incl. losses) | Charge ($) |
|---|---|---|---|---|---|
| Network Access Charge | 31 | 31 days | $31.3911 / day | — | 973.12 |
Calculated as:
Daily rate × number of days = $31.3911 × 31 = $973.12.
Network Charges
| Line item | Days | Quantity | Rate (per kVA) | Rate (incl. losses) | Charge ($) |
|---|---|---|---|---|---|
| Demand Charge | 30 | 150 kVA (max) | $0.1878 × 30 = $5.634 | — | 845.10 |
Calculated as:
Maximum Demand × Rate per unit × Days = 150 kVA × $0.1878 × 30 = $845.10.
Network Charges
| Line item | Days | Quantity | Rate (per kVA per month) | Rate (incl. losses) | Charge ($) |
|---|---|---|---|---|---|
| Demand Charge | — | 4,819.77 kVA (max) | $7.621 | — | 36,731.47 |
Calculated as:
Maximum Demand × Monthly Rate × 1 month = 4,819.77 kVA × $7.621 × 1 = $36,731.47.
Maximum demand (kW or kVA) recorded at your site during the billing period.
Distributor charge for maximum demand outside defined summer peak hours (as set by your distributor).
Credits or debits that correct previous invoices, such as re-reads, rebills, or tariff changes.
Fees from the market operator for services that maintain system frequency and stability.
Fees associated with participation in the National Electricity Market paid to the market operator.
Cost of the Reliability and Emergency Reserve Trader program used to secure extra reserves to avoid blackouts.
Outstanding balance carried into the current invoice, shown as a credit or debit.
Credits for energy exported to the grid, shown by time-of-use period where applicable.
Correction related to previously billed network capacity charges.
Distributor charge based on network capacity assigned or used at your site, often linked to historical maximum demand.
Distributor usage for loads controlled by a timer or remote device, such as off-peak hot water.
Distributor usage for circuits controlled separately, such as hot water or specific equipment.
Correction related to previously billed network demand charges.
Distributor charge based on a capacity value (kW/kVA) set for your site’s connection.
Distributor charge for maximum demand (kW or kVA) measured during defined intervals.
Distributor demand charge based on demand measured on nominated days during summer peak.
Company that owns and maintains the local network delivering electricity to your site.
Factor applied to account for energy losses in the distribution network.
Charge for use of the distribution network, which may be single-rate or time-of-use.
Daily fixed charge for connection to the distribution network.
Demand charge applied during off-peak network times, as defined by the distributor.
Demand charge applied during peak network times, as defined by the distributor.
Distribution energy charges billed by network time windows.
Distribution fixed charges related to connection asset values; terminology varies by distributor.
Cost to comply with the Large-scale Renewable Energy Target.
Variant of LRET compliance cost; product naming may differ.
Cost to comply with the NSW Energy Savings Scheme.
Variant of ESS compliance cost; product naming may differ.
Cost to comply with the Small-scale Renewable Energy Scheme.
Variant of SRES compliance cost; product naming may differ.
Cost to comply with Victorian Energy Upgrades (formerly VEET).
Retailer charges for electricity consumed, usually by time-of-use as per your contract.
Charges for installation or servicing of energy-related equipment or services, if applicable.
Usage estimated when actual meter data is unavailable; later corrected with actual data.
Charge applied by the retailer for processing credit card payments, where applicable.
Optional premium for accredited renewable energy based on a chosen percentage.
Goods and Services Tax applied to eligible charges and itemised on the bill.
Interest applied to overdue amounts, where applicable.
The supply period covered by the bill and the date the invoice was issued.
Unit of apparent power used for demand charging; affected by power factor.
Unit of real power; also used for demand charging.
Unit of energy consumption; equals kW multiplied by hours of use.
Distributor charges for public, street, or security lighting assets and operation where applicable.
Meter that accumulates total consumption between manual reads.
Meter that records usage in intervals (e.g., 15/30 minutes), enabling TOU and demand billing.
Breakdown of kWh by time-of-use periods recorded by the meter(s) at your site.
Charges for metering provision, data, and maintenance by the metering provider or distributor.
Factor applied to account for energy losses in the transmission network.
Daily access or supply charge for use of network infrastructure.
Correction related to previously billed network usage or fees.
All distributor network charges (usage, fixed, demand) under access arrangements.
Network usage charges billed by distributor-defined time windows.
Network demand or usage charges during distributor-defined high-season windows.
Network demand or usage charges during distributor-defined low-season windows.
Network usage charges for non-summer periods as defined by the distributor.
Network usage charges for summer periods as defined by the distributor.
Network usage charged at one rate for all times, with no time-of-use differentiation.
Lower-priced period under TOU; timings defined by your contract or distributor.
Network demand charge applied during off-peak times, where applicable.
Miscellaneous items such as market fees, service fees, or special works.
The invoice due date.
Total payments applied since the previous invoice.
Higher-priced time-of-use period; timings defined by your contract or distributor.
Network demand charge applied during peak times.
Measure of how effectively electrical power is used; low PF can increase kVA demand charges.
Equipment installed to improve PF and reduce kVA demand charges.
Total from the prior invoice before current charges are applied.
Government or scheme-based credits for eligible customers; jurisdiction-specific.
Section of the invoice containing federal and state environmental compliance costs.
Distributor charge for access to an alternative or backup feeder.
Retailer fee for account administration or contract management, where applicable.
Mid-price time-of-use period between peak and off-peak.
Network demand charge applied during shoulder times, where applicable.
Physical address where electricity is consumed.
Start date, end date, and number of days in the billing period.
Seasonal network demand charges during summer or winter periods, as defined by the distributor.
Total now payable including GST, combining current and any previous balances.
Total charges before GST is added.
Combined effect of transmission (MLF) and distribution (DLF) losses applied to rates.
Sum of all consumption (kWh) during the invoice period across all meters at the site.
Charge for use of the transmission network; may be single-rate or time-of-use.
Daily fixed charge for transmission network use.
Transmission energy charges billed by network time windows.
Unique identifier for your electricity account with your retailer.
National Metering Identifier—unique ID for your connection point to the electricity network.
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