Pricing
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BLOG10 July 20262 min read

Pricing

We are a regulated business which means the Australian Energy Regulator (AER) must approve the prices we charge for network services.

CitiPower and Powercor charge for the distribution of electricity. That is the cost of maintaining a network of substations, poles, and wires that provides the electricity our customers need. 

 

Tariffs and charges

Network tariffs cover the cost of transporting electricity through the network to homes and businesses. This includes the transmission and distribution networks that deliver electricity to customers.

Metering tariffs cover the cost of installing and maintaining electricity meters, as well as providing meter data services.

We charge these costs to electricity retailers, who then recover them through customers' electricity bills.

We also provide a range of customer-requested services known as alternative control services. These are regulated services that are paid for by the customer receiving the service.

Alternative control services include:

  • Ancillary network services
  • Public lighting services
  • Metering coordinator services

For a typical residential customer, network and metering charges make up around 35% to 40% of an electricity bill.

 

How are network charges calculated?

The network charges you pay depend on the tariff you choose with your energy retailer.

Tariffs vary based on:

  • The type of connection you have, such as residential, business, high-voltage, or sub-transmission.
  • When you use electricity, including peak, shoulder, and off-peak periods.
  • How much electricity you use.

Some tariffs may include:

  • A fixed daily charge
  • Peak usage rates
  • Shoulder usage rates
  • Off-peak usage rates
  • Demand charges

The total amount we can collect from these charges is limited by a revenue cap set by the AER.

This means we must ensure that our prices and the services we provide each year do not generate more revenue than the amount approved by the AER.

 

How are network charges used?

Network and metering charges help fund essential services, including:

  • Maintaining a safe and reliable electricity network
  • Upgrading and expanding the network to meet future demand
  • Operating the network each day
  • Connecting new customers
  • Maintaining public lighting
  • Providing metering services