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Issue 14 :: September 2006
 
Article: You and your electricity bill

By Prue McLennan, EWON Research Officer

pic_lightglobeMany people only look at one thing on their bill – how much do I owe? Take some time to look over the other information provided and you may find it saves you from the shock of a high bill.

As well as telling you how much you owe, most utility bills will give you other important information, such as how much electricity you use per day. Along with the usage charge, this gives you an idea of how much you’ll need to set aside each week to pay your bill.

What to look for on your bill

With your electricity bill for example, look for the following information:

1. Billing period: Routine quarterly bills cover approximately 85-95 days, depending on the meter reading date.

2. Due date for payment: Failure to pay by this date may incur a fee, so contact your retailer if you need to request an extension.

3. Meter reading − actual vs estimated: If a reader has been unable to access your meter your bill will show ‘estimated’. This can mean you don’t pay enough to cover your usage and you’ll have to pay the difference when they do an actual read. Receiving a ‘catch up bill’ is a common reason for people receiving a high bill.

4. Comparison of average daily usage: A graph compares your average daily usage with your last bill and with the same period last year. If there is a big difference, consider whether you’ve been using a new appliance or had additional people staying with you.

5. Greenhouse report: A summary of the greenhouse gases that were emitted to produce your energy for the billing period.

6. Usage charge: This is based on your usage as recorded by your electricity meter and the tariff is expressed in cents per kilowatt hour. Note that if your usage hasn’t changed but your bill is higher, it may be due to price increases which usually occur after 1 July.

7. SAC (Service Availability Charge): This is a standard fee which covers network maintenance, metering and administration costs, and the cost is expressed in cents per day. It will vary according to the number of days in the billing period.

8. Payment summary: This will include the amount of your last bill, current amount owing and any arrears, payments received before the bill was issued and the amount of GST payable.

9. Rebates or discounts: If you are entitled to a pensioner rebate or discount this should appear in your payment summary.

Save yourself $20 per year

We know we should try to pay our power bills on time, but there is a real financial advantage to doing it, and that’s avoiding a late payment fee. Electricity retailers can charge customers a fee of $5, five days after the due date on the electricity bill has passed. Only one late payment fee can be charged per bill but for customers who are struggling financially it adds to their hardship. The $5.00 fee has been approved by IPART (the Independent Pricing and Regulatory Tribunal of NSW), but there are safeguards for customers:

A late fee can’t be charged:

  • during an agreed extension of time between the customer and the company
  • when an instalment plan is in place
  • when the customer has an unresolved billing complaint with EWON.

The late fee must be waived:

  • where the customer has contacted a welfare agency for assistance
  • where payment or part payment of the bill is by EAPA voucher
  • on a case-by-case basis as considered appropriate by EWON (if you would like more information on this, call EWON on freecall 1800 246 545).

Not sure about your bill?

If there’s something on your bill you don’t understand, give your retailer a call. If you ask your company to investigate a high bill and you’re not satisfied with their response, you can ask EWON to conduct an investigation and independently review your complaint.