Consumer Information

Energy Pricing

 

 Electricity Industry Icon Electricity prices are calculated based on the retail prices set by electricity retailers in South Australia.  Electricity retail prices are built up from two components: network and retail charges.

 Electricity Billing Image

Network component:

  • The network component consists of the cost associated with the transmitting and distributing of electricity from power generators to your home or business.
  • Transmission involves the physical bulk transfer of electric power from power generators to substations located near population centres.
  • Distribution involves the distributing of electricity from substations to end-users. The Australian Energy Regulator (AER) regulates both the transmission and distribution components of electricity network tariffs in South Australia.
  • The network component comprises approximately 45% of a typical residential annual bill.

Retail component:

  • The retail component consists of the cost of energy and retail operating costs.
  • The cost of energy covers the costs incurred by electricity retailers in the purchasing of electricity from the wholesale electricity and/or long-term contracts with energy suppliers.
  • Retail operating costs are expenses incurred by energy retailers in undertaking electricity retailing activities (e.g. billing and customer service).
  • The retail component makes up the remaining 55% of a typical residential annual bill.

 

 Gas Industry Icon Gas prices are calculated based on the retail prices set by gas retailers in South Australia. Gas retail prices are built up from two components: network and retail charges.
 Gas Billing Image  

Network component:

  • The network component consists of the cost associated with the distributing of natural gas from gas fields to your home or business.
  • Distribution involves the distributing of electricity from distribution systems that supply metropolitan areas to end-users. The Australian Energy Regulator (AER) regulates the distribution component of gas network tariffs in South Australia.
  • The network component comprises approximately 55% of a typical residential annual bill.

Retail component:

  • The retail component consists of the cost of energy and retail operating costs.
  • The cost of energy covers the costs incurred by gas retailers in the purchasing of natural gas from the wholesale gas from gas producers.
  • Retail operating costs are expenses incurred by energy retailers in undertaking gas retailing activities (e.g. billing and customer service).
  • The retail component makes up the remaining 45% of a typical residential annual bill.

 

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