What Impacts Price/Cost of Electricity?

Different Costs Included in Your Bill

The format of power bills from electricity retailers vary considerably, but they all have common elements that should be understood in order to manage total electricity costs. They fall into two general categories, fixed and variable charges.

  • Network charges – Volume charge, Demand charge and Service availability charges
  • Energy charges – Peak, Shoulder and Off peak rates per kWh or kVAh
  • Other charges – LREC charge, AMEO charges, SREC charge, Service charge and GST.

Analysing Your Power Bill

As with other business management processes, analysing power bills sequentially over long periods gives a better picture of the ebb and flow of power demand. Having this longer timeframe understanding puts you in a better position to reduce your power bills.

What Can Impact Different Cost Elements?

Time of use will more and more become the critical element determining the size of monthly power bills. Businesses that can time shift operations to off peak periods will benefit from the lower charge rates. Businesses that consciously monitor start up sequencing of plant to hold down short term load spikes will also see a benefit. The other major area for saving on electricity bills is to improve power quality within the business. See other sections of this website to gain more knowledge about the significant benefits to be gained by measuring power quality cleaning up’ dirty power’ situations within a business’ electricity circuits.

Additional Information