Your gas and electricity tariffs are charged in two parts. The first is what’s known as a ‘service to property charge’. It’s sometimes also called a ‘daily supply charge’, ‘service charge’ or ‘fixed charge’. This charge represents the cost of your property being connected to gas and electricity, independent of how much gas or electricity you actually use. So even if you don’t use any gas or electricity in a billing period, you will still be charged for service to property, if your supply is connected.
Service to property charges are identified separately on your bill, and can either appear as a daily rate (for example, billed as ‘cents per day’), or as a single total dollar amount for the entire billing period. The service to property charge is what you pay for infrastructure maintenance, including the upkeep of things like poles, pipes and wires, as well as other administrative costs associated with energy supply.
The second charge on your bill is the ‘usage charge’, which is also commonly called the ‘consumption charge’ or ‘variable charge’. This represents the cost of the gas or electricity you actually use, which is billed on top of the service to property charge.
Concession discounts are available for service to property charges where energy usage is low. To be eligible, your service to property charge must be higher than your usage charge (before any solar credits are deducted). You must also have either a:
- Pensioner Concession Card,
- Health Care Card, or
- Veterans’ Affairs Gold Card.
The concession discount is calculated by deducting the usage charge from the service to property charge. This does not include other retailer discounts or concessions. To find out if you are eligible for this concession, you should call your retailer. If you are eligible, once you have provided your concession details, your retailer will automatically apply the concession to your account.
For more guidance on what different parts of your bill mean, watch EWOV’s video, ‘Reading Your Bill’.