BILLDECODER GUIDE
A business electricity bill has four main categories of charges. Usage charges are what you pay for the electricity you actually use — measured in kilowatt hours (kWh) and charged at a rate per unit. Demand charges are based on your highest usage spike at any single moment — one 15-minute peak sets this charge for the entire month. Network charges pay for the poles, wires, and infrastructure that deliver electricity to your business. Supply charges are a daily fee for being connected to the grid — you pay this even if you use zero electricity.
Together, these four categories make up 100% of your bill (before GST). Understanding which category each line item belongs to is the first step to knowing whether you're overpaying — and where the savings opportunities are.
Network charges (the cost of poles and wires) typically make up 40–50% of your electricity cost — and most business owners don't know they exist.
Usage charges are the most straightforward part of your bill. They measure how much electricity you've actually consumed, in kilowatt hours (kWh), and charge you a rate per unit. Think of it like your water bill — you pay for each litre you use.
If you're on a flat rate (also called a single rate), you pay the same price per kWh regardless of when you use it. Simple.
If you're on a time-of-use tariff, your rate changes depending on when you use electricity. Peak rates (typically weekdays 2pm–8pm) are the most expensive. Off-peak rates (overnight and weekends) are the cheapest. Shoulder rates fall in between. The idea is to encourage businesses to shift usage away from peak periods when the grid is under the most pressure.
For most businesses, usage charges make up 20–40% of the total bill. The exact percentage depends on whether you also have demand charges — if you do, usage charges will be a smaller proportion of the total.
Demand charges are based on the single highest spike in your electricity use at any moment during the billing period. Unlike usage charges (how much you used over time), demand charges measure the maximum rate at which you used electricity at a single point.
For many businesses, demand charges make up 30–50% of the total bill — yet most business owners have never heard of them. Your bill might label them as "demand charge," "capacity charge," or "kW/kVA charge."
We've written a full guide to demand charges that explains how they work, why they're so high, and what you can do about them.
Network charges pay for the physical infrastructure that delivers electricity to your business — the power lines, transformers, substations, and everything in between. They're split into two parts:
Transmission charges (TUOS) pay for the high-voltage network that moves electricity from power stations to regional substations. Think of these as the highway tolls — the cost of moving electricity long distances.
Distribution charges (DUOS) pay for the local network that delivers electricity from substations to your business. Think of these as the local street costs — the poles and wires in your area.
Together, network charges typically make up 40–50% of your total electricity cost. You can't negotiate them directly — they're regulated by the Australian Energy Regulator (AER) and passed through by your retailer. But the tariff structure they're calculated on can sometimes be reviewed. Read more in our TUOS and DUOS guide.
The daily supply charge is a fixed fee for being connected to the electricity grid. You pay it every day regardless of whether you use any electricity. It covers the cost of maintaining your connection, your meter, and the retailer's administration.
For businesses, the daily supply charge is typically $1–$3 per day, depending on your state, network area, and tariff type. Over a quarter, that's $90–$270 before you've used a single kilowatt hour of electricity.
While it's a relatively small portion of a business bill, it's worth comparing supply charges between retailers — they can vary by 30–50% for the same connection.
These are government-mandated charges that fund renewable energy targets and environmental programs. They include the Large-scale Renewable Energy Target (LRET) and the Small-scale Renewable Energy Scheme (SRES). They're a small percentage of your total bill — typically 5–8% — and all retailers pass them through at roughly the same rate.
If you've opted into a GreenPower product, you'll see an additional charge for the percentage of renewable energy you've elected to purchase. This is voluntary and separate from the mandatory charges.
Yes. GST at 10% applies to your total electricity bill. All the charges listed above are shown excluding GST in the line items, and the 10% GST is added at the bottom. If your business is GST-registered, you can claim the GST on your electricity bill as an input tax credit on your BAS.
Demand charges as a percentage of total. If demand charges make up more than 30% of your bill, there's likely room to reduce them through staggering equipment startup or fixing your power factor. See our demand charges guide.
Contract end date. If your contract is expiring soon, start shopping for a new deal before you roll onto a default offer, which is almost always more expensive.
Rate type. Make sure you're on the right tariff for your usage pattern. A business that uses most of its electricity during off-peak hours might save by switching from a flat rate to time-of-use. A business with steady usage throughout the day might do better on a flat rate.
Or just upload your bill. BillDecoder reads every line on your bill and tells you all of this — and more — in 60 seconds.
Why is my business bill so much more complicated than a residential bill?
Business bills often include demand charges, network demand charges, power factor readings, and multiple rate tiers that residential bills don't have. You may also be on a negotiated contract with custom rates rather than a published market offer.
What should I check first on my bill?
Three things: (1) demand charges as a percentage of total — if they're above 30%, there's likely room to reduce them, (2) your contract end date — if it's approaching, start shopping now, and (3) your rate type — make sure you're on the right tariff for your usage pattern.
Can I negotiate my electricity rates?
If you're a larger business (roughly above $20,000/year in electricity), yes — retailers will negotiate. Smaller businesses can still switch between market offers. Either way, knowing what you're currently paying gives you leverage.
What does 'controlled load' mean on a business bill?
Controlled load is a separate meter circuit — usually for hot water or pool pumps — that runs on a cheaper rate but only during off-peak hours chosen by the network. It's more common on residential bills but some businesses have it too.
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Analyse your business billLast updated: March 2026