Following on from our article last week, we are breaking down the basic terms used by the energy industry, to help you understand your bill.
Tariff
For consumers a tariff is a code that represents how much you should be charged for your electricity. It is divided into two components: a fixed and variable charge. The fixed charge is also known as the service charge. Effectively this is the retailer charging you for letting you buy electricity from them – oh, and maintaining the lines and reading the meters. The variable charge is also known as the usage charge and is the cost in cents per Kilowatt hour (c/kWh) that you pay for each unit of electricity.
Single rate:
Sometimes referred to as peak rate tariff. On this tariff you are charged the same amount per unit of electricity for the entire day.
Block Tariff:
Are charges that are broken into specific blocks. When you reach the usage limit for the first block you are charged for any extra energy at the second block rate. For example, 0-2000 kWh charged at 22cents while the next 2100-5000kWh are charged at 32 c/kWh.
Off Peak Tariffs:
Are often used to power select items in the household, such as hot water systems. These systems are connected to a separate meter so that they can be powered at off-peak times. In these instances the rate is often called ‘controlled load’. Under this tariff the cost per unit of electricity is lower than the standard rate.
Time of Use Tariffs:
Does what it says on the pack. Charges customer’s different rates based on the time of day they are using electricity. Off peak times are cheaper than peak times and run in the evenings and weekends.
NMI/MIRN
The NMI and MIRN are a 16 digit number that is on every customer’s bill. They identify the property and what kind of tariff the customer should be paying. Basically it is an account number for the property. If the customer moves house their new bill will have the NMI and/or MIRN for their new house.
Should you have any queries about your bill or would like to discuss your energy needs further do not hesitate to give us a call on 1300 697 868.
