The network charge or tariff on your invoice is advised to us by your energy distributor. The tariff is a regulated charge invoiced to Origin and then passed through on your invoice to cover the cost of building, maintaining and operating the poles and wires and for delivering electricity to your site. The charge is calculated based on your consumption and will appear on your invoice as both a peak and off-peak components.
Network tariffs are detailed on your bill.
Other regulated charges
Reliability and Reserve Emergency Trader (RERT)
If you have sites located in Victoria or South Australia, you may have seen a RERT charge on your bill, typically after the summer months. In South Australia, the charge is called Directions.
What is RERT?
The RERT charge is similar to other market charges, but they are region and event specific.
Under the National Electricity Rules (NER), the Australian Energy Market Operator (AEMO) can take action, if required, to maintain or restore the power system to a reliable operating state.
Why are you charged RERT?
When an event occurs, AEMO may request generators to increase supply if possible as well as request large commercial users to significantly reduce load or shut down. In return, AEMO financially compensates those users. It is that cost that is then passed back to retailers, such as Origin, who then pass the cost to customers who had consumed electricity in that region. AEMO charges are based on market state regions and customers are charged based on the region their supply is connected to.
RERT has two components charged to energy retailers, who then pass the charge to customers in that area:
1. Capacity or sometimes referred to as a fixed charge.
This can be charged throughout October 2018 to March 2019 and represents payment for contracted participants to ensure they are available should AEMO deem it necessary to stabilise the power system.
2. Activation or variable charge
This charge is when the service is activated.
Frequently asked questions
Network charges can change due to:
Annual network tariff price change
Typically, network providers review the prices associated with their network tariffs on an annual basis. Each network provider submits a submission to the Australian Energy Regulator for review and approval, and Origin is formally notified of the changes to the network tariff.
Network review of your consumption
The network provider may also conduct a tariff review which may instigate a change of tariff for your site typically in response to a significant increase or decrease in demand or load at your site. Occasionally, network providers undertake a review of the overall tariff structure and make some tariffs obsolete or introduce new tariffs.
Origin/customer-instigated tariff review
Origin may, at your request, review the suitability of your existing network tariff and facilitate, on your behalf a formal request for change of network tariff to the network provider. Once approved by the network provider, this change will be reflected on your invoice from the nominated effective date. Your tariff can generally only be changed once per annum in this manner.
Network charges are rates multiplied by your consumption to calculate the charge that will appear on your invoice and typically have both a peak and off-peak component. Network charges are referenced on your invoice as:
- Network off-peak
- Network peak
- Network shoulder - where applicable
The network charges on your invoice will reflect the network tariff advised to us by your provider.
Demand is a measurement of capacity or the rate at which energy is used. Sometimes called a power charge or capacity charge, demand charges are measured in kilowatts (kW).
Demand represents the greatest amount of energy used in 15-30 minute intervals during a billing cycle. To measure demand, electric meters record the average demand usage over each 15-30 minute period and record the highest (peak) period for the month. Through the demand charge, each business pays its share of the utility's investment in generation, transmission and distribution equipment standing by to serve.