Fixed (daily supply) charge
A set amount per day just to stay connected to the Ausgrid network, regardless of how much power you use. It appears on your bill as part of the daily supply charge.
Network charges
Ausgrid
NSW network
Network charges · New South Wales
Ausgrid network charges
Network charges are the cost of delivering electricity through Ausgrid's poles and wires, and they make up a large slice of every bill in New South Wales. You cannot shop around for a cheaper distributor, but understanding these charges shows you exactly which part of your bill you can still control.
What are Ausgrid network charges?
Your electricity bill is built from a few stacked costs: the wholesale energy itself, the network (or distribution) charge for delivering it, environmental scheme costs, and your retailer's margin. The network charge is the slice that goes to Ausgrid for running the poles, wires, substations and meters that carry power to your home.
You never pay Ausgrid directly. Your retailer pays the network charge and passes it through on your bill, folded into your daily supply charge and your usage rates. Because every retailer on the Ausgrid network pays the same regulated network price, this part of your bill does not change when you switch retailer.
On your bill
What makes up the Ausgrid network charge
Network charges usually come in two or three parts, depending on your tariff.
Variable (usage) charge
A charge per kilowatt-hour (c/kWh) for the energy delivered across the network. It can vary by time of day if you are on a time-of-use or demand tariff.
Demand charge (some tariffs)
On some plans, a charge based on the highest amount of power you draw in a short window during peak periods, to reflect the strain on the network.
Who sets Ausgrid network charges?
Ausgrid cannot set its prices freely. It proposes network charges, which are reviewed and approved by the Australian Energy Regulator (AER). Approved prices are published each year and apply equally to every retailer on the network. That regulation is also why switching retailer never changes the network portion of your bill, only the energy and margin on top.
Common questions
A Selectra expert answers your Ausgrid network charge questions
Network charges (also called distribution or DUOS charges) are what Ausgrid charges to deliver electricity through its poles and wires. Your retailer pays them to Ausgrid and passes them through on your bill, bundled into your daily supply charge and usage rates.
Network charges are typically one of the largest components of a residential electricity bill, often a similar size to the wholesale energy cost itself. The exact share depends on your tariff, your usage and where you live in the Ausgrid network.
Ausgrid proposes its network prices, which are reviewed and approved by the Australian Energy Regulator (AER). Approved prices are published each year and apply to every retailer operating on the Ausgrid network, so the network portion of your bill is the same whoever you buy from.
You cannot switch distributor or negotiate the network charge, it is regulated. But you can reduce the rest of your bill by comparing retailers, choosing the right tariff for your usage, shifting use off peak times, and adding solar. That is where the savings are.
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You can't choose Ausgrid, but you can cut the rest of your bill
Network charges are fixed by your distributor, but they are only part of your bill. The retailer's energy and supply charges are the part you control. Compare retailers that supply your address to find a cheaper plan.