Supply Charge Explained
The supply charge is one of the most misunderstood parts of an electricity bill.
Unlike usage charges, which depend on how much electricity you use, the supply charge is a fixed daily fee you pay just for being connected to the grid. It shows up on every Australian electricity bill regardless of how much power you consume.
What Is a Daily Supply Charge?
The daily supply charge — sometimes called a service to property charge or network access fee — is the fixed cost of maintaining your electricity connection. It covers the cost of poles, wires, metering, and network infrastructure.
It is charged every single day, whether you use electricity or not.
For example, if your supply charge is 90 cents per day and your billing period is 90 days, you'll pay $81 in supply charges before a single kilowatt hour of electricity is accounted for.
Where Does It Appear on Your Bill?
The supply charge is usually shown in the charges breakdown section of your bill. You might see it labelled as:
- •Supply charge
- •Service to property charge
- •Network access charge
- •Daily fixed charge
- •Metering charge
It is typically listed in cents per day (c/day) on the rate sheet and then shown as a total dollar amount for your billing period.
Why the Supply Charge Matters
For households that use a lot of electricity, the supply charge is often a small part of the total bill. But for low usage households — such as singles, couples, or people who are away from home often — the supply charge can make up a significant proportion of the total cost.
For example, if your total bill is $150 for a quarter and your supply charge is $81, that means more than half your bill is the fixed connection fee before you've used any electricity at all.
This is why supply charges are important to factor in when comparing electricity plans — a plan with a lower usage rate but a higher supply charge is not always cheaper.
How Supply Charges Vary Between Plans
Supply charges are partly set by your electricity network (distributor) and partly by your retailer. Different retailers may offer different supply charge rates, even for customers in the same area.
Common supply charge ranges in Australia tend to fall between approximately:
- •70 to 130 cents per day in most states
- •some plans in higher-cost network areas may exceed this range
When comparing plans, look at the supply charge alongside the usage rate — both affect what you'll actually pay.
Low Usage Households Should Pay Attention
If you use relatively little electricity — perhaps because you live alone, are often away, or have solar covering most of your daytime usage — the supply charge has an outsized effect on your bill.
Some plans with lower usage rates have higher supply charges. These plans may suit high usage customers but can cost more overall for low usage households. Understanding both figures gives you a clearer picture.
Frequently Asked Questions
Can I avoid paying a supply charge?
Not if you want to remain connected to the electricity grid. The supply charge is a mandatory cost of having an active electricity connection. Some off-grid solar setups eliminate it, but that's a much larger decision than simply switching plans.
Is the supply charge the same on every plan?
No. Supply charges vary between retailers, even for customers on the same network. Comparing the supply charge is just as important as comparing the usage rate when evaluating plans.
What's a reasonable supply charge to look for?
This varies by state and network area, but comparing your current supply charge against available plans in your area gives you a sense of what's competitive. Bill Scout shows this comparison as part of the plan analysis.