Tariffs Explained

What is a network tariff?

• Every home connected to the grid is on a network tariff
• It's assigned to your property by your network / local distributor (the company that owns the poles and wires in your area), and it determines how and when network charges apply to your bill
  • Each network has a set of network tariffs you can choose from

Every retailer passes on these network charges, but most blend them into rates and add a margin on top, so you'll rarely see the true network tariff prices.

Amber passes network charges straight through, so they appear on your bill exactly as per network documents.

How it affects your prices

Your Live Prices screen already includes your current network tariff.

It stacks up like a cake: the network charge is the base, other fees (e.g. hedging, environmental, market fees) and GST sit in the middle, and the wholesale price is the icing on top. The wholesale price moves every 5 minutes, while the network charge only changes if you switch tariff.

Note: Live Prices does not reflect daily costs (such as Amber's Monthly Subscription, Network Daily Supply charges)

Types of network tariff

From most to least common:

1. Time of use: network charge depends on the time of day
2. Demand: time of use rates plus a separate charge for your highest usage, calculated at end-of-month
3. Two-way: time of use rates, plus export bonuses and charges (generally best if you have a battery)
4. Flat: network charge is same all day (older style, being phased out)

Your Live Prices screen will reflect and incorporate what network tariff you're on. SmartShift takes these live prices into account when it makes decisions.

Most network tariffs only impact your usage price. Two-way tariffs also impact your export price.

Time of use

You pay more when the network is busiest (usually late afternoon and evening) and less when it's quiet. Most have two or three bands: peak, shoulder and off-peak.

Example: Ausgrid EA025 Time-of-Use (NSW)

Making the most of it: shift flexible usage out of peak. Dishwashers, washing machines and dryers are easy wins, and most have a delay start. With a battery, SmartShift aims to cover your peak usage so you're not buying from the grid.

Time of use tariffs generally impact only your usage costs, and not your export price

Demand

Cheaper usage rates (usually time of use) plus a demand charge. The demand charge is set by your single highest half-hour of usage in a daily window. The daily window differs by network, but is generally in the afternoon to evening (e.g. 3pm–9pm). One busy half-hour sets the charge for the whole month. It's billed separately, so it won't show in your live price.

Example: Ausgrid EA116 Time-of-Use (NSW)

Run the oven, air conditioner and kettle together at 6pm and draw 5kW for half an hour, and that 5kW sets your demand charge for the month.

Making the most of it: during the demand window, run one high-power appliance at a time. See what common appliances draw, or read How do demand tariffs work with Amber?

Demand tariffs generally impact only your usage costs, and not your export price

Two-way

Time of use rates for imports, plus a bonus for exporting in the evening peak and a small charge for exporting at midday, when the grid is already full of solar. Also called a solar export / network export credit / CER tariff.

Example: Energex 96200 two-way tariff (QLD)

Making the most of it: two-way tariffs suit homes with a battery that can export in the evening and use most of their own solar at midday. SmartShift times your exports for the reward window. See the two-way tariff on your network.

Two-way tariffs will also impact your export price, as well as your usage cost. 

Click here to find out more about two-way tariffs

Flat

One rate, added to the wholesale price regardless of the time. Also called an anytime or single rate tariff. It used to be the default but has since been phased out, with most networks moving towards time-of-use.

Example: Endeavour N70 Flat (NSW)

Making the most of it: the network charge never changes, so follow the wholesale price. Your total usage price is usually lowest in the middle of the day, when there's plenty of solar on the grid.