Fixed (daily supply) charge
A set amount per day just to stay connected to the CitiPower network, regardless of how much power you use. It appears on your bill as part of the daily supply charge.
Network charges
CitiPower
VIC network
Network charges · Victoria
CitiPower network charges
Network charges are the cost of delivering electricity through CitiPower's poles and wires, and they make up a large slice of every bill in Victoria. 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 CitiPower 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 CitiPower for running the poles, wires, substations and meters that carry power to your home.
You never pay CitiPower 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 CitiPower 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 CitiPower 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 CitiPower network charges?
CitiPower cannot set its prices freely. It proposes network charges, which are reviewed and approved by the Essential Services Commission (ESC). 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 CitiPower network charge questions
Network charges (also called distribution or DUOS charges) are what CitiPower charges to deliver electricity through its poles and wires. Your retailer pays them to CitiPower 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 CitiPower network.
CitiPower proposes its network prices, which are reviewed and approved by the Essential Services Commission (ESC). Approved prices are published each year and apply to every retailer operating on the CitiPower 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 CitiPower, 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.