The gas and electricity tariff has two parts:

• daily supply charge, and
• usage charge.

The daily supply charge

The daily supply charge is also known as the:

• service charge (or service to property charge), or
• fixed charge.

This is the cost of getting electricity or gas to your place, even if you don't use any.

You might see it on your bill:

• in cents per day, and
• as the total amount for the billing period.

The usage charge

The usage charge is also known as the:

• consumption charge, or
• variable charge.

This is the cost of the electricity or gas that you use.

You might see it on your bill in:

• cents per kilowatt hour (c/kWh) for electricity, and
• cents per megajoule (c/MJ) for gas.

Some bills might show more than one usage charge.

For example, a time of use offer might have different usage charges for different time periods, which are usually called:

• peak
• shoulder, and
• off-peak.

Your retailer can calculate the usage charges on your bill in different ways, depending on your offer.

How tariff blocks look on a bill

Some energy offers split your energy usage into different tariff blocks. With tariff blocks, you pay:

• one rate or cost for the first part of your usage, then
• a different rate or cost for the next part (or parts) of your usage.

Blocks can apply to:

• daily
• monthly, or
• quarterly usage.

For time of use electricity offers, blocks can also apply to the different rates that make up a tariff.

For example, you get charged one rate for the first part of your peak usage, then a different rate for the next part.

Have a look at our interactive electricity and gas bills to see examples of how tariff blocks might look on your bill.