What Makes Up The Electricity Bills In Perth?
With the steadily increasing electricity rate, the costs of electricity bills in Perth WA has become quite concerning. In Perth, electricity rates are confusing in itself, and it is quite a challenge to understand your electricity bills. Especially if your electricity provider charges you with a daunting electricity rate, it is better for you to understand what costs are involved in your electricity consumption.
Every time you pay your electricity bill to your preferred electricity provider, your bill is made up of three components as follows:
1. Supply Charge
This is the daily fixed cost that you need to pay to receive electricity to your building.
2. Consumption/ Usage Charge
This applies to how much power you used on the property during the supply period. The term to measure your consumption is kilowatt-hours (kWh).
3. Other Fees
You can also earn rebates (credits) or incur extra charges based on your situation.
Knowing all this information about electricity costs, now it is time for you to pay attention to your energy usage. There are a few more things to take into account.
Explanation on the Costs of Your Electricity Bills
1. Generating Cost
It consists of purchasing of fuels and the construction, operation and maintenance of power stations. This is the place that generates the electricity costs.
2. Transmitting/ Network Cost
It is the cost we need to pay for the network corporations that own and maintain transmission and distribution systems. Your bill also charges the building management and maintenance of the new and existing power lines.
3. Retailer Cost
Every Electricity Retailer charges us differently. The service we pay to energy providers includes the connection of our account to the grid, electricity purchasing from generators, and account management.
These three are the costs associated with our electricity. The further question you might ask is “what exactly made up my energy bill?” Many factors make up your electricity bill’s cost, and understanding them is crucial to managing your energy costs.
Perth Electricity Cost Breakdown
You need to know how and what your electricity rates consist of if you have a Perth based business. Here is your electricity cost breakdown:
1. Wholesale Costs
Around 53% of the wholesale costs make up your bill. This is the cost of sourcing and generating electricity which you consume.
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.
With four factors that contribute to your energy bill, you may notice that the one you have control of is the retail cost. Suppose you wish to reduce your electricity bill. In that case, you need to know how much electricity costs you owe to the energy provider and what made that up.
Factors that Determine Your Electricity Costs in Perth WA
1. How much energy your business uses
Your preferred energy retailer charges your power consumption per kilowatt-hours (kWh).
2. The times in which you use your electricity (peak or off-peak)
Off-peak times are generally when residential and companies use less electricity. On-Peak times are hours when residential and companies use the most electricity.
Your energy retailer charges a different tariff for peak and off-peak hours.
3. Energy Market Conditions
4. Government policies, especially the regulations concerning the energy consumption for both in your home state and nationally.
All of these factors determine the final cost. Understanding them will help you make a better and more informed decision when choosing an electricity supplier. Learn the tips on how to negotiate your business electricity contract and get more advantage on your energy contract deal.
Reduce Your Business Electricity Cost with Cost-Effective Energy Contract
Currently, Perth residents are enjoying electricity supplied by Synergy; these prices are both regulated and subsidised by the Western Australian Government. But it doesn’t apply to businesses. For business, the freedom to choose an energy retailer is in your hands. We encourage you to benefit from this privilege. Read more information about Perth Electricity Providers and choose your preferred energy provider.
Choosing the right deals from various energy retailers costs you time to make phone calls and review the offer. We are here to do all the painful work for you. Carbon Energy is a Perth based Energy Broker; we have immense knowledge and vast experience in the WA energy market.
Carbon Energy removes the hassle from dealing with numerous energy providers by completing all the comprehensive evaluation and calculation on your behalf to ensure you obtain competitive offers with low contract risks to your business.
Speak to one of our energy specialists to secure a free energy cost audit (valued at $2000) on 0864601613.