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Networks and your bill

Electricity Network Charges and Their Share of Your Bill

Up to almost half of a household power bill pays for the networks that deliver the electricity. Here is what that money covers and how it is changing.

Checked against regulator sources, October 2026

How much of your bill goes to the network

Your bill pays for four main things: the wholesale cost of electricity, network costs, environmental and state scheme costs, and your retailer's own costs and margin. The AER found that network charges were as much as 46% of a residential bill in 2024. Within the network part:

What network charges pay for, maximum share of network costs, 2024
  1. Distribution network63% to 92%
  2. Transmission networkup to 27%
  3. State schemese.g. old premium feed-in tariffsup to 15%
  4. Meteringup to 8%

Source: AER, State of the energy market 2025. Ranges vary by network.

Where network charges appear on your bill

Your retailer pays the network and folds the cost into its own prices. Part of it goes into the daily supply charge and part into the usage rate. That is why supply charges vary so much between networks: from about $1.19 a day in Perth to $2.72 a day on Essential Energy in regional NSW on regulated 2026-27 prices.

Retailers do not have to copy the structure of the network tariff. A network might charge your retailer a time-of-use or demand tariff while the retailer sells you a flat rate, or the other way around. Our guide to network tariffs explains how that works.

How network charges are changing

Estimated average yearly change to the network part of a residential bill, current determination
  1. Power and Water2024-29+4.1% a year
  2. TasNetworks2024-29+2.3% a year
  3. Energex2025-30+2.2% a year
  4. Ergon Energy2025-30+2.2% a year
  5. Essential Energy2024-29+1.5% a year
  6. Endeavour Energy2024-29+1.1% a year
  7. Evoenergy2024-29+0.8% a year
  8. Ausgrid2024-29+0.7% a year
  9. SA Power Networks2025-30+0.4% a year

AER estimate of the impact of each network's current revenue determination on the network component of a typical residential bill. Source: AER, State of the energy market 2025.

Victoria's five networks started new five-year periods on 1 July 2026. The AER estimated the distribution part of a Victorian residential bill would fall by between $6 and $38 a year on average across 2026-31, because demand is forecast to grow and spread costs over more customers.

Why rural networks cost more

Essential Energy has about five customers per kilometre of line. Ausgrid has more than 40. Each kilometre needs poles, inspections, tree clearing and storm repairs, so the cost per customer is far higher in the country.

Common questions

It varies by network, but the AER found network charges made up as much as 46% of a residential bill in 2024. Wholesale energy, retail costs and environmental schemes make up the rest.

Not while you are connected to the grid. You can reduce the usage-based part by using less power or shifting it to cheaper times, but the daily supply charge applies every day you are connected.

Rural networks have much more line per customer. Essential Energy in regional NSW has about five customers per kilometre of line, against more than 40 for Ausgrid, so the cost of poles, maintenance and repairs is spread over fewer people.

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.