Electricity tariffs

When you choose an electricity plan, sometimes called an offer or contract, you’re choosing how you’ll be charged for the electricity you use. These plans include your tariff prices plus any discounts or benefits you may receive. The tariff can include: 

• A price for electricity usage that passes through the meter  
• A daily price for supply costs. 

Smart meters are changing tariffs 

NSW aims for everyone to have a smart meter by 2030. A smart meter records how much electricity is used in intervals and the data is read remotely.  

When meters can record what time of day energy is used, tariffs can be cost-reflective. This means the tariff can be structured with different prices for electricity used at different times of day, usually related to peak demand periods.  

Customers can choose a tariff that suits their circumstances, ie their usage patterns and the appliances they own to make the most of their energy and save on their bill.  

Tariff types  

• Flat tariff: A single rate for electricity usage at all times of the day. 
• Time of Use tariff: Different prices for electricity usage based on the time of day and/or year energy was used eg peak price for 3-9pm in summer and winter, and an off-peak price for all other times. 
• Demand tariff: The demand price is often combined with another price, such as TOU. Demand is calculated by taking the total amount of energy used during a specified time eg how many kWh you used in a single 30 min period. This figure is then used to calculate an additional fixed charge 
• Feed-in tariff: Electricity retailers do not have to offer a feed-in price as part of an energy plan. However, if an advertised energy plan does include any conditions relating to solar (eg price changes, charges or benefits) the retailer must provide this information.  
• Export tariff: An export price applies to energy (from solar or batteries) exported from the home to the grid above a basic limit. It may be limited to specific periods of the day, or days of the week. An export rebate (credit or payment) applies to energy exported at specific times of the day, or days of the week. 
• Controlled load tariff: Controlled load is often used to control large appliances such as hot water systems, air conditioners, pool pumps and underfloor heating. Electricity is separately metered from the rest of the electricity supply and controlled at the connection point so that the energy is mostly used during periods of low energy demand usually with a lower price. 

Find out more about what tariffs are available in your area in our What is my electricity tariff factsheet.