What Makes Up Electricity Costs in Perth

Perth Electricity is confusing in itself and understanding your electricity bills and what you are being charged by your electricity provider in Perth  can also be daunting.

There are many factors that that make up the cost of your electricity  bill and understanding them is crucial to being able to manage your energy costs.

The first thing you need to be aware of is how and what your rates are made up of if you have business in Perth

  1. WHOLESALE COSTS : Around 53% of the wholesale costs makes up your bill. This is the cost of sourcing and generating the electricity which is then sold to you.
  2. NETWORK COSTS : Around 38% of the network cost makes up your bill. This is the cost of having the electricity transported through Western Powers infrastructure (wires) to your business or home.
  3. REGULATORY CHARGES : Around 8% of the regulatory charges make up your bill. These are charges controlled by the state and federal government and include climate change policy charges and Government obligations.
  4. RETAIL COSTS : Around 2% of the retail charges make up your bill. These are the charges linked to your supplier taking care of your account.

It is important to take into consideration the following:

  • How much energy your business exhausts
  • The times in which you use your electricity (peak or off peak)
  • Energy Market Conditions
  • Government energy policies in your state and nationally.

All of these factors determine the final cost and understanding them will help you to make a better and more informed decision when choosing an electricity  supplier.

By | 2017-05-04T14:43:30+00:00 May 4th, 2017|Blog Post|Comments Off on What Makes Up Electricity Costs in Perth