How to Read CNI Power Bills

For large market NMI’s (sites using more than 100,000 kWh per year) there are a few elements to consider. “Peak” and “Off-peak” charges are only a part of the picture. Don't be misled into thinking that the $0.05 or $0.10 'retail charges' are what you pay. When you add up the other charges, $0.05 per kWh may actually be $0.15 per kWh.

There are generally 4 groups of charges on your bill:

WHOLESALE/RETAIL CHARGES

This is the cost of electricity generation, plus the retailer's margin. Usually more than 50% of your bill.

NETWORK CHARGES

These cover the cost of maintaining the network (e.g. the poles and wires) and are set state-wide. May be roughly 30% of your bill.

ENVIRONMENTAL CHARGES

This is to cover things like renewables subsidies. About 10% of your bill.

OTHER CHARGES

Covers costs such as admin and metering. Generally 1% of your bill.

Within these groups there are usually 3 types of charges on your bill:

CONSUMPTION CHARGES

This is charged per kWh of energy used, and is usually split into peak, off-peak or shoulder.

FIXED CHARGES

These are for costs such as metering and daily charges, which you pay regardless of how much energy you use.

PEAK DEMAND CHARGES

The purpose of this charge is to discourage energy spikes, which can overload the power grid. Peak Demand Charges are generally only charged to businesses that use more than 100MWH per year, and are charged for the one interval (eg. 30min) of the month (or sometimes day or even year) when the most power was being used.

This charge is measured in kW or kVA and can be reduced by things like staging equipment startups to flatten your usage profile. If you are being charged in kVA then improving your power factor can also help.

To calculate your actual electricity price per unit of power we follow these steps:

To more accurately calculate your per kWh rates:

For Peak - add together all kWh unit rates (excluding off-peak).

For Off-Peak - add together all kWh unit rates (excluding peak).

For example, the below bill has a Peak Rate of $0.065 and Off-Peak Rate of $0.050. However when you add together all the other kWh rates from Network, Environmental and Other charges, the actual Peak Rate is closer to $0.136 and Off-Peak is closer to $0.121).

At AUSTEP we provide comprehensive energy efficiency solutions with a focus on long-term sustainability. Our goal is to enhance the appearance, performance and safety of your buildings while helping you save on both energy and maintenance costs.