Breaking Down the Electricity Supply Charge: What It Really Means for Aussies
Published October 25, 2025
Electricity bills can be mind-boggling. With a variety of tariffs, discounts and charges, trying to work out what you are being charged for each time can be a full-time job in itself. One fee that seems to raise a lot of eyebrows is the electricity supply charge, which is a daily fee you’re charged, no matter what amount of electricity you end up using.
If you ever sat down to look at your bill and thought, “Why am I being charged for electricity on days when my place is unoccupied?” then you’re not alone. Knowing about supply charges can allow you to better manage your electricity bills and even save money by comparing the best electricity plans and electricity retailers in Australia.
What is an electricity supply charge?
An electricity supply charge, which is also referred to as a daily supply charge, is a daily charge that your energy retailer imposes on you for simply being on the electricity grid. It’s charged every day and is whether or not you utilize any electricity on any given day.
This fee pays for the upkeep of the infrastructure providing electricity to your property – poles, wires, meters, and grid upkeep. It also helps pay for administration and retail services by your electricity provider.
How to find the cheapest electricity supply charge
Not all supply charges are created equal. Electricity retailers can set different supply charges depending on your location, distributor, and plan type. Here’s how to find the most affordable option:
- Use a reputable energy comparison service to compare supply charges across different providers in your area.
- Basic Plan Information Documents or Energy Price Fact Sheets must be provided by retailers listing all charges.
- A low supply charge can have associated higher usage rates, so compare overall estimated costs, not a single charge in isolation.
- Discounts that reduce both supply and usage charges are offered if you pay on time or through direct debit.
If you’re not sure which plan represents the best value, calling an electricity comparison broker will save you time and money.
Who determines the charges?
Electricity supply charges are determined by your Australian energy retailer, but they’re affected by the electricity distributor in your area. Distributors deliver electricity to your home or business physically, and prices differ by region.
These distribution costs are factored in by retailers, and they then impose supply charges accordingly. In regulated markets, like some regional Queensland, supply charges might be fixed or authorize a government regulator, like the Queensland Competition Authority.
For all of Australia’s capital cities – Sydney, Melbourne, Brisbane, Adelaide, and Perth – traders are in a competitive environment, so businesses can charge the price, allowing customers to go around to different places.
What do electricity supply charges pay for?
Electricity supply charges finance the permanent costs of providing the electricity network and powering your house. These pay for:
- Fixing poles and wires
- Grid upgrades and maintenance
- Meter administration and metering services
- Safety and emergency infrastructure
- Operational costs for retailer
Even if you’re living off solar power or reducing your energy consumption, this fee still exists because you’re still effectively plugged into the grid and prepared to tap electricity whenever you need it.
Switch Energy Providers For getting the best deal
Electricity supply charge can have a big impact on your overall energy costs, especially if your usage is low. That’s why it’s so important to compare not just usage rates, but fixed daily charges as well.
If you’re on the optimal plan or just need assistance reducing your energy costs, contact the Aussie-based staff at Utility Market. Call Utility Market to talk to a local expert and take control of your electricity bills.
