BILLDECODER GUIDE
Every term on your electricity bill explained in plain English. No jargon. No assumed knowledge. If a term has a technical abbreviation, we lead with the plain English name and put the abbreviation in brackets — because that's how it should have been written on your bill in the first place.
This glossary covers 47 terms that appear on Australian business electricity bills. Each explanation is written so it makes sense on its own — you don't need to read anything else first. Where a term connects to a deeper topic, we link to the relevant guide.
47 electricity bill terms explained in plain English — the glossary every Australian business owner needs.
Your 11-digit business identifier. It appears on your bill because electricity is a tax-deductible business expense and the GST on your bill can be claimed as an input tax credit on your BAS.
The total electrical load your business draws from the grid — real power (the useful electricity) plus reactive power (the wasted capacity). If your demand charges are billed in kVA, poor power factor will inflate this number. Think of it as the full glass of beer including the froth. See our power factor guide. Read more →
The time window during which a discount or special rate applies to your electricity plan. Check when it ends — retailers often increase rates significantly after the benefit period expires, counting on you not noticing.
The time span your bill covers — usually a month or a quarter (three months). All usage, demand, and supply charges on your bill are calculated over this period.
Another name for a demand charge. Based on the maximum amount of electricity your business draws at any single moment, measured in kW or kVA. See our demand charges guide. Read more →
A government discount on your electricity bill. Concessions are usually available to households with a pension or healthcare card. Some states offer small business energy programs but they're less common. Check your state government's energy website.
A discount that only applies if you meet certain conditions — usually paying on time or paying by direct debit. If you miss the condition (even once), you lose the discount for that billing period. Always check what conditions are attached to any advertised discount.
The physical point where your business connects to the electricity network. Each connection point has a unique meter number (NMI). Some businesses have multiple connection points — for example, separate meters for the shop floor and the warehouse.
A separate meter circuit that powers specific appliances (usually hot water systems or pool pumps) on a cheaper rate. The trade-off is that the network controls when it runs — typically overnight during off-peak hours. More common on residential bills but some businesses have it too.
A fixed daily fee for being connected to the electricity grid. You pay this every day even if you use zero electricity. For businesses it's typically $1–$3 per day. It covers the cost of maintaining your connection, your meter, and retailer administration.
A fee based on the single highest spike in your electricity use during the billing period. One 15-minute peak can set the demand charge for the entire month. Demand charges can make up 30–50% of a business bill. See our demand charges guide. Read more →
A pricing plan that includes demand charges as a component. Most business electricity plans with demand charges are demand tariffs. The government price cap (DMO) does not apply to customers on demand tariffs.
The percentage discount off your electricity rates. Be careful: some discounts apply only to usage charges, not to the whole bill. A 20% discount on usage charges might only save you 8–10% on the total bill once supply charges, demand charges, and network fees are included.
Charges for the local network — the poles, wires, and transformers that deliver electricity from the regional substation to your business. DUOS typically makes up 30–40% of your total electricity cost. See our TUOS and DUOS guide. Read more →
The company that owns and maintains the local poles and wires in your area. Examples: Ausgrid, Endeavour Energy (NSW), CitiPower, Powercor (VIC), Energex (QLD). You can't choose your distributor — it's determined by your location.
The rate your retailer pays you for excess solar electricity you export back to the grid. Feed-in tariff rates vary widely between retailers (from 0c to 15c/kWh or more) and are a key comparison point if your business has solar panels.
A pricing plan where you pay the same rate per kWh of electricity regardless of when you use it. Simpler to understand than time-of-use pricing. Can be better value for businesses that use electricity evenly throughout the day.
The standard electricity usage on your meter — as opposed to controlled load usage, which runs on a separate circuit. General usage is what most of your bill is based on.
The Default Market Offer — a maximum price set by the Australian Energy Regulator for electricity in NSW, South Australia, and South East Queensland. It acts as a safety net so standing offer customers don't pay excessively high rates. Important: the DMO does not apply to customers on demand tariffs, which means most SMEs with demand charges have no price cap protection.
A voluntary program where you pay extra to have a percentage of your electricity matched by government-accredited renewable energy sources. The GreenPower charge appears as a separate line item on your bill.
A 10% tax applied to your total electricity bill. If your business is GST-registered, you can claim the GST on your electricity bill as an input tax credit on your BAS.
A digital meter that records your electricity usage in 15-minute or 30-minute intervals (as opposed to an accumulation meter that only records total usage). Interval meters are required for demand tariffs and time-of-use pricing.
A measure of electrical power — how fast you're using electricity at any given moment. Think of it as the speed of the tap: how much water is flowing right now. Demand charges are measured in kW or kVA.
A measure of electrical energy — how much electricity you've used over time. Think of it as the total litres of water that flowed through the tap. Usage charges are measured in kWh. One kWh is enough to run a typical air conditioner for about one hour.
A business that uses more than 100 MWh (100,000 kWh) of electricity per year. Large market customers typically negotiate their electricity contracts directly and may have access to wholesale pricing arrangements.
An electricity plan with rates set by the retailer, usually lower than the standing offer. Market offers may include discounts, fixed-rate periods, and other benefits. Most businesses should be on a market offer, not a standing offer.
A charge for reading, maintaining, and operating your electricity meter. This is usually a small fixed charge that appears on your bill monthly or quarterly.
Your National Metering Identifier — a unique 10 or 11-digit number that identifies your electricity connection point. You need your NMI when switching retailers or querying your bill. It's different from your meter serial number.
The combined cost of transmission (TUOS) and distribution (DUOS) charges. These pay for the physical infrastructure that delivers electricity to your business. Network charges typically make up 40–50% of your total electricity cost. See our TUOS and DUOS guide. Read more →
The cheapest time period for electricity on a time-of-use tariff. Off-peak is typically overnight (10pm–7am) and weekends, when grid demand is lowest. Rates can be 30–50% cheaper than peak rates.
The most expensive time period for electricity on a time-of-use tariff. Peak is typically weekday afternoons and early evenings (2pm–8pm in most states), when grid demand is highest.
A measure of how efficiently your equipment uses electricity, on a scale from 0 to 1. Think of it as the ratio of beer to froth in a glass — a power factor of 0.7 means 30% of what you're drawing is wasted capacity. Poor power factor inflates demand charges and can be fixed with a capacitor bank. See our power factor guide. Read more →
A regulatory reform that gave Australian electricity customers the right to choose their own metering provider. In practice, your retailer usually handles metering arrangements.
Electricity drawn by equipment with motors and coils (air conditioners, compressors, refrigeration) that doesn't do useful work. Think of it as the froth in the beer glass. Reactive power inflates your apparent power (kVA) reading and increases demand charges if you're billed in kVA.
The company that sells you electricity and sends you the bill. Examples: AGL, Origin, EnergyAustralia, Red Energy, Alinta. You can choose your retailer (except in some regional areas). Your retailer bundles the energy cost, network charges, and environmental charges into one bill.
The mid-priced time period on a time-of-use tariff, sitting between peak and off-peak. Shoulder periods are typically weekday mornings (7am–2pm) and evenings (8pm–10pm). Not all tariffs have a shoulder period.
See flat rate. A pricing plan where you pay the same price per kWh regardless of time of day.
A business that uses less than 100 MWh (100,000 kWh) of electricity per year. Most small and medium businesses fall into this category. Small market customers are covered by the National Energy Retail Law consumer protections.
A digital meter that can be read remotely and records electricity usage in detailed intervals. Smart meters enable time-of-use pricing, demand tariffs, and remote connection/disconnection. Victoria completed a statewide smart meter rollout; other states are transitioning.
The credit you receive when your solar panels export excess electricity back to the grid. The rate varies by retailer (from 0c to 15c/kWh or more). Some retailers offer higher feed-in tariffs as a competitive incentive.
The default electricity plan you're on if you haven't actively chosen a market offer. Standing offers are more expensive than market offers and are capped by the government price cap (DMO) in applicable states. If you're on a standing offer, switching to a market offer is almost always cheaper.
The pricing structure that determines how your electricity is charged. Common tariffs include flat rate, time-of-use, and demand tariffs. The right tariff for your business depends on when and how you use electricity.
A pricing plan where your electricity rate changes depending on the time of day. Electricity is cheaper during off-peak hours (overnight, weekends) and more expensive during peak hours (weekday afternoons). Good for businesses that can shift usage to off-peak times.
Charges for the high-voltage transmission network — the big power lines that carry electricity from power stations to regional substations. Think of these as the highway tolls. TUOS typically makes up 8–12% of your total electricity cost. See our TUOS and DUOS guide. Read more →
What you pay for the electricity you actually consume, measured in kilowatt hours (kWh). Usage charges are the most straightforward part of your bill — the more electricity you use, the more you pay. See our guide to reading a business bill. Read more →
The Victorian Default Offer — a maximum price set by the Essential Services Commission for electricity in Victoria. It serves the same purpose as the DMO in other states: a safety net for customers on standing offers. Like the DMO, it does not apply to customers on demand tariffs.
The electrical pressure that pushes electricity through wires. Standard Australian business supply is 240V single-phase or 415V three-phase. Higher voltage supply (used by large industrial customers) can be more cost-effective for high-demand businesses.
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Analyse your business billLast updated: March 2026