Breaking down your energy costs

What goes into your energy

Wholesale, network, retail and other costs make up the bulk of every energy bill. The actual breakdown of cost varies from year to year and will also depend on your location. You can find a breakdown of each of these costs below.

Wholesale costs

Wholesale costs cover the purchasing of electricity or gas from electricity generator or gas producer companies. Electricity is sold by generators to the National Energy Market (NEM), while gas is purchased directly from producers.

As an energy retailer, EnergyAustralia purchases electricity from the NEM, and gas directly from producers. EnergyAustralia is both an energy retailer and a generator.

Network costs

Network costs cover the process of delivering energy to households or businesses. This includes things like pipes for gas, power lines, substations and metering stations for electricity.

Networks are owned by distributor companies, who are responsible for getting the energy to your premises. Distributors charge a fee for maintaining the physical powerlines and gas pipes that make up the network.

Government and other costs

These costs are charged to us to comply with government-mandated schemes. For example, the Small-scale Renewable Energy Scheme or Large-scale Generation Certificates are schemes administered by the Commonwealth and State governments, which EnergyAustralia is required to participate in as an energy retailer.

A Market charge is an example of ‘other’ costs that make up your bill. The Australian Energy Market Operator, for example, charges fees that energy retailers must pay to cover the cost of operating Australia’s energy markets.