Part 1: Essential Energy's role

Essential Energy operates and maintains one of Australia’s largest electricity distribution networks (poles and wires). We provide electricity to 95 per cent of NSW and parts of southern Queensland through 183,612 kilometres of powerlines covering 737,000 square kilometres of landmass.

We serve more than 865,000 customers – homes, hospitals, schools, businesses and community services.

But Essential Energy’s role as an electricity distributor is just one part of the total electricity supply cost. Our costs represent about 35 percent of an average NSW customer’s retail electricity bill, however it is not our network prices that you see on your retail bill.

This is because all the electricity supply chain costs are compiled by retailers into a range of tariff products from which customers can choose. The tariff you see on your electricity bill (of which our network charges form a part) is directly related to the retail product you have chosen and can be structured very differently from our network tariffs.

Bill percentages based on 2018-19 data from AEMC, Residential electricity price trends 2019, Final report, 9 December 2019, p.7

So, when we talk about Essential Energy’s tariffs, we are just talking about that 35% component of your bill. However, to ensure we can send accurate price signals and drive fairer prices for our customers, we will be partnering with some retailers as part of our trials so they can develop and trial associated retail prices. As these retailers are taking part in our 'Talking Tariffs' engagement, they will be privy to the feedback from our engagement parties.

Click this link to move on to the next section Part 2: How do tariffs work now?

Essential Energy operates and maintains one of Australia’s largest electricity distribution networks (poles and wires). We provide electricity to 95 per cent of NSW and parts of southern Queensland through 183,612 kilometres of powerlines covering 737,000 square kilometres of landmass.

We serve more than 865,000 customers – homes, hospitals, schools, businesses and community services.

But Essential Energy’s role as an electricity distributor is just one part of the total electricity supply cost. Our costs represent about 35 percent of an average NSW customer’s retail electricity bill, however it is not our network prices that you see on your retail bill.

This is because all the electricity supply chain costs are compiled by retailers into a range of tariff products from which customers can choose. The tariff you see on your electricity bill (of which our network charges form a part) is directly related to the retail product you have chosen and can be structured very differently from our network tariffs.

Bill percentages based on 2018-19 data from AEMC, Residential electricity price trends 2019, Final report, 9 December 2019, p.7

So, when we talk about Essential Energy’s tariffs, we are just talking about that 35% component of your bill. However, to ensure we can send accurate price signals and drive fairer prices for our customers, we will be partnering with some retailers as part of our trials so they can develop and trial associated retail prices. As these retailers are taking part in our 'Talking Tariffs' engagement, they will be privy to the feedback from our engagement parties.

Click this link to move on to the next section Part 2: How do tariffs work now?

Page last updated: 08 Oct 2020, 02:10 PM