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Like to understand more about what makes up the energy rates you see on your bill? Maybe you’ve even wondered about what it takes to get energy to your home or business?
Read on and we’ll show you how’s it done.
1. Generation
Electricity is generated at power stations and other sources such as pumped hydro, wind and solar battery farms that are owned by a group of energy companies known as ‘generators’.
The electricity is then sold to the National Energy Market known as ‘The NEM’.
The NEM is where generators sell and retailers buy electricity around Australia (except for NT & WA).
2. Transmission
The high voltage transmission lines you see when you drive along the highway send the electricity across the country.
3. Substations and power lines
The electricity carried by those high voltage transmission lines reach a substation where the voltage is lowered and sent through smaller power lines to your home or business.
The transmission, substations and power line network are owned by electricity distributors in your area. In some states there are multiple distributors and in other states there may be just one.
4. Meters
The electricity’s final destination is the meter at your home or business that measure how much is used.
What does this mean for my electricity bill?
There are four main costs that make up your bill. These are:
to purchase electricity from generators and producers.
charged by distributors for electricity transmission, and the poles and wires that deliver the electricity.
charged by us for servicing and billing your electricity account.
incurred by us to comply with government schemes. Small-scale Renewable Energy Scheme and Large-Scale generation certificates are examples of government green schemes administered by the Commonwealth and state governments, which EnergyAustralia is required to participate in as an energy retailer.
Market charges are another example of ‘other costs’ such as the Australian Energy Market Operator fees and charges that all energy retailers must pay.
Wholesale, network and other costs typically take up the largest portion of the bill. Usually, the smallest portion is the retailer cost. The actual breakdown of cost varies from year to year and will also depend on where you are in Australia.
1. Gas producers
These are the companies that source natural gas from land or under the seabed. They drill wells to bring gas up to the surface to gas plants where they process it for us to use.
2. Transport
Before it is transported an odorant is added to natural gas (to make it easier to detect a leak). It’s then transported through giant, mostly underground, gas pipelines to homes, businesses, and industrial sites.
3. Distribution
Gas is delivered to gas distributors at gas metering stations. From there the gas moves through underground pipes to homes and businesses. In some states there are multiple distributors and in other states there may be just one, or none.
Queensland for example doesn’t have a natural gas distribution network.
4. Meter
The gas arrives in your home or business through the gas meter that measures how much is used.
What does this mean for my gas bill?
There are four main costs that make up your bill. These are:
to purchase gas from producers.
charged by gas distributors for metering and maintenance of the pipes that delivers the gas.
charged by us for servicing and billing your gas account.
incurred by us to comply with government schemes. Small-scale Renewable Energy Scheme and Large-Scale generation certificates are examples of government green schemes administered by the Victorian and South Australian governments, which EnergyAustralia is required to participate in as an energy retailer.
Market charges are another example of ‘other costs’ such as the Australian Energy Market Operator fees and charges that all energy retailers must pay.
Wholesale, network and other costs typically take up the highest portion of the bill. Usually, the smallest portion is the retailer cost. The actual breakdown of cost varies from year to year and will also depend on where you are in Australia.