Understanding energy plans
Take charge of your energy choices with our guide to understanding your plans.
How your electricity rates are determined
Wholesale costs
The costs of purchasing electricity from wholesale markets.
Network costs
The costs of managing and maintaining the network of poles and wires that transfers electricity to your property.
Environmental costs
The costs of complying with important environmental initiatives, such as meeting the Renewable Energy Target (RET) and developing small scale solar schemes.
Retailer costs
Our costs for looking after our customers, including managing customer data and billing services, developing tools like the Nectr app, and running our award-winning customer care team.
Goods and services tax (GST)
Always included in the price.
Peak and off-peak electricity usage rates explained
Your energy bill is comprised of fixed and variable charges.
The fixed charge
The fixed charge (also known as the daily supply charge) will stay the same, regardless of how much energy you use.
Variable charges
Variable charges reflect the amount of electricity you consume. The rate that you are charged depends on your tariff set-up.
Tariffs
A tariff refers to the variable rate that you are charged for the electricity you use. It could, for example, mean that you are charged different rates depending on the time of day, or day of the week, that electricity is being used.
Single rate tariff
With a single rate tariff, usage charges will be applied at the same flat rate for all electricity used.
Time of use tariff
A time of use tariff means that you are charged different prices for electricity, at two different times of the day: peak times and off-peak times.
Peak times
Peak times describe the time of day when demand on the grid is highest. This is usually weekday afternoons and evenings, however these time periods may vary depending on where you live. You may be eligible for a time of use tariff, but this will depend on the type of meter you have, and the area in which you live.
Controlled load
With a controlled load (also known as a two-rate tariff), if you have one or more large appliances (such as hot water storage systems or pool pumps), you can nominate to have them metered separately at a lower rate than the rest of your property, while setting the specific times that electricity is supplied to them.
Feed-in tariff
If you have solar power, the feed-in tariff is a credit paid for each kWh of electricity produced from your solar panels, that is exported back into the grid.
FAQs about understanding energy plans
View all FAQs
A tariff refers to the variable rate that you are charged for your electricity usage. It could, for example, mean that you are charged different rates depending on the time of day, or day of the week, that electricity is being used, and could be dependent on where you live and the type of meter your place has.
A single rate tariff is a pricing structure offered by an energy retailer (like Nectr), which has no peak or off-peak time periods, and customers are charged the same flat rate.
Also known as an ‘anytime’ or ‘general usage’ rate, if you have a single rate tariff, you will pay the same price, regardless of the time of day, or day of the week, that you use the electricity.
A kilowatt hour (abbreviated as kWh) is a measurement of electrical energy usage.
Electricity is measured in watts, and a kilowatt is simply 1,000 watts – the same way that a kilogram is 1,000 grams, and how a kilometre is 1,000 metres.
One kilowatt-hour (1 kWh) is the amount of electricity that is used when you have a single 1,000-watt appliance continuously running for one hour. For example, if you turned on a 60-watt light bulb, it would take 6 hours to consume 1 kWh of electricity.
While Nectr is an electricity supplier, an electricity distributor own the poles, wires, and meters that delivers the power to your home. Distributors are the ones responsible for fixing faults and power outages.
The local energy network distributors differ in each state. Below is the list of distributors Nectr uses:
NSW
- Ausgrid
- Endeavour
- Essential
QLD
- Energex
SA
- SA Power
ACT
- Evoenergy
VIC
- Citipower
- Jemena
- United Energy
- Powercor
- AusNet
The Victorian Default offer is set by the Essential Services Commission, who determines the reference price each year, and it applies to small business and residential customers throughout Victoria.
To help customers compare the price of different offers, electricity retailers must show the price of their offer compared to the Victorian Default offer price, whenever they advertise or promote their offer pricing.
The default market offer (DMO) is set by the Australian Energy Regulator, who determines the reference price each year, and it applies to small business and residential customers in SA, NSW, and south-east QLD, where there is no other retail price regulation.
To help customers compare the price of different offers, electricity retailers must show the price of their offer compared to the DMO price, whenever they advertise or promote their offer pricing.
The wholesale national electricity market (NEM) is where generators sell the electricity they produce, and where retailers (like Nectr) buy electricity. Then, retailers can re-sell the electricity to you to use in your home or business.
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