What is a network tariff?

Network tariffs are charged to energy retailers from the network operator to recoup the cost of supplying, maintaining and improving infrastructure, such as electrical poles and wires. Your retailer passes these costs on as part of your electricity contract and the network infrastructure charges typically account for more than 50% of the total electricity bill. These charges are fixed and non-contestable, meaning they cannot be negotiated like your energy rates.

 

Benefits of network tariff reviews 

Our network tariff reviews are an excellent way of saving money on your energy usage. In fact, our Network Tariff Review service has identified over $18.4M of savings for our clients since 2014.

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$4.1M+

Savings identified

for our clients by our network tariff review service this calendar year

Annual opportunity to save on network charges

Depending on your location in the network and your actual load profile, there is a yearly opportunity to nominate the appropriate network tariff structure for your site. Choosing the optimum tariff structure for the profile of your operations can result in a substantial reduction of the overall size of your electricity bill. The identification of this opportunity and process of transferring can be seamlessly managed by your energy consultant.

The Australian Energy Regulator (AER) determines network tariffs and reviews pricing structures every year. Several factors affect price increases, including:

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Rising peak demand and load growth

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Increased network security, safety and reliability obligations

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Replacing ageing assets

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New connections

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More rigorous licensing conditions

 

Annual reviews for Energy Metrics clients 

Contract Management customers under an Energy Metrics service receive an annual network tariff review to ensure they are on the most cost effective tariff for their site.

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