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Tariff component

Tariffs paid by our customers have two main components

  • The basic tariff which comprises a standard cost of fuel and other costs required for electricity supply
  • A Fuel Cost Adjustment to customers to cover any fuel costs above or below the standard cost of fuel already included in the basic tariff

Customers pay the Fuel Cost Adjustment for each unit of energy they use on their bills.

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Total fuel costs and fuel costs not included in basic tariff

To help our customers better understand fuel costs, we are publishing two indicators each month.

Firstly, the total fuel costs represent the average cost of fuel of each kWh of electricity consumed in a month.

Example: The total fuel costs for September 2013 are 29.5 ¢/unit

Secondly, not all fuel costs are included in the basic tariff and these need to be paid separately through the Fuel Cost Adjustment.

Example: Fuel costs not included in basic tariff for September 2013 are 19.2 ¢/unit

Example of fuel costs not included in basic tariff calculation

Fuel costs
September 2013   

Amount

Per unit

Total fuel costs

(a) $902m

(a)/(d) 29.5 ¢/kWh

Fuel costs
included in basic tariff*  

(b) $315m  

(b)/(d) 10.3 ¢/kWh

Fuel costs
not included in basic tariff 

(c) $587m 

(c)/(d) 19.2 ¢/kWh

Local sales
(Millions of kWh)

(d) 3,059

* Part of the fuel costs already collected through basic tariff at a standard rate of $700/44GJ.

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