What the usage charge is
Your meter counts the kilowatt hours, or kWh, of electricity that flow into your home. The usage charge is that number multiplied by your rate. On a flat rate there is one price. On time of use, different hours have different prices, and controlled load appears as its own line at a cheaper rate.
A kilowatt is a rate of power use. A kilowatt hour is energy over time. A 1,000 watt microwave running for an hour uses 1 kWh. Running it for six minutes uses a tenth of that.
Usage rates by state for 2026-27
| State | Lowest | Highest |
|---|---|---|
| New South Wales | 33.14c | 35.01c |
| Victoria | 25.96c | 31.98c |
| Queensland | 27.97c | 28.89c |
| South Australia | 41.91c | 41.91c |
| Western Australia | 33.26c | 33.26c |
| Tasmania | 24.75c | 24.75c |
| Australian Capital Territory | 36.95c | 36.95c |
| Northern Territory | 31.68c | 31.68c |
What common appliances cost to run
To cost any appliance, multiply its power in kW by the hours it runs to get kWh, then by your rate. The table uses the Ausgrid reference rate of 33.14c/kWh and typical power draws.
| Appliance | Use | kWh | Cost |
|---|---|---|---|
| Split system air conditionerabout 1.5 kW | 6 h | 9.00 | $2.98 |
| Electric fan heaterabout 2 kW | 4 h | 8.00 | $2.65 |
| Clothes dryer, one loadabout 2.5 kW | 1 h | 2.50 | $0.83 |
| Dishwasher, one cycleabout 1.2 kW | 1.5 h | 1.80 | $0.60 |
| Pool pumpabout 1 kW | 8 h | 8.00 | $2.65 |
| LED light bulbabout 0.01 kW | 5 h | 0.05 | $0.02 |
Heating and cooling dominate
In most homes, heating, cooling and hot water make up the bulk of usage. A fan heater and a reverse cycle air conditioner can deliver the same warmth, but the air conditioner uses a fraction of the electricity because it moves heat rather than making it.
How to bring usage charges down
Find your daily usage
Divide the kWh on your bill by the days. Around 11 kWh a day is typical. Much more points to heating, cooling, hot water or a pool.
Target the big users first
Hot water, heating and cooling matter far more than lights or phone chargers. A heat pump hot water system or efficient air conditioner saves more than any number of switched-off standby lights.
Move usage to cheaper times
On time of use, the same kWh can cost half as much outside the peak. Free midday power plans make the middle of the day cheaper still.
Check your rate
If your usage is normal but your rate is above the regulated price for your network, compare plans.
Questions about usage charges
It is the cost of the electricity you used: the kWh recorded by your meter multiplied by your rate in cents per kWh. On a time-of-use plan it is split into peak, shoulder and off-peak lines, and controlled load appears separately at its own rate.
A kilowatt hour is the energy used by something drawing one kilowatt of power for one hour. A 2 kW heater running for an hour uses 2 kWh. A 10 watt LED bulb would take 100 hours to use 1 kWh.
On 2026-27 regulated flat rates, between 24.75c in Tasmania and 41.91c in South Australia, including GST. Most networks sit between about 26c and 34c. Market offers can be cheaper, and time-of-use plans charge different amounts at different times.
Multiply its power in kW by the hours it runs, then by your rate. A 1.5 kW air conditioner running for 6 hours uses 9 kWh. At 33.14c that costs about $2.98. The power rating is on the appliance label or in the manual.
Usually heating, cooling or hot water. Compare your kWh a day with the same bill last year. A sudden jump with no change in habits can point to a faulty hot water system, a pool pump timer, a second fridge or an estimated meter read.
Both help, and they add together. Switching lowers the price of every kWh. Cutting usage removes kWh altogether, saving the full rate each time. If your rate is already below the regulated price for your network, usage is where the next saving lies.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.