Tariff structures are the biggest factor in how your business’ electricity and gas prices are calculated. They differ based on the type of meter you have, your energy distributor and the state you operate in.  

Tariffs are divided into two parts:

  • the ‘fixed charge’ for daily supply of energy to your premises
  • the ‘variable charge’ for the amount of energy you use

The variable charge relates directly to how much energy you consume. Tariffs vary depending on your energy distributor.

The three types of energy tariffs

  • standard offer – set by the retailer, published
  • market retail offer – set by the retailer, not published
  • government regulated offer – set by the government with input from the retailer

Not all offer types are available in all states

Types of tariff structure for electricity

  • single rate – no variation in usage rates no matter what time of day or year it is
  • block rate – a usage rate calculated based on blocks of usage
  • off-peak – rates change in low usage periods, such as overnight
  • time of use – different times of day incur different rates; same goes for different times of year
  • feed-in tariff – paid to the customer based on the amount of energy they ‘feed-in’ to the grid, mainly made possible by generating solar power using solar panels. It is only applied on top of one of the other usage tariffs

Types of variable charge tariffs for gas

The tariff structure for gas depends on your state

  • seasonal rate – rates change between peak season (usually winter) and off-peak season.  Usage can be charges on a single rate in each period or block rate
  • single rate – no variation in usage rates no matter what time of day or year it is