Analysis

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What’s behind the bill? Unpacking the cost components of household electricity bills

With ongoing scrutiny of household energy costs and more recently retail costs, it is timely to revisit the structure of electricity bills and the cost components that drive them. While price trends often attract public attention, the composition of a bill reflects a mix of wholesale market outcomes, regulated network charges, environmental policy costs, and retailer operating expenses. Understanding what goes into an energy bill helps make sense of why prices vary between regions and how default and market offers are set. We break down the main cost components of a typical residential electricity bill and look at how customers can use comparison tools to check if they’re on the right plan.

BY Tom Monaghan Jun 19 2025

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Regulated Electricity Prices: A look at network and wholesale costs

Retail costs have recently received much attention in the draft regulated Default Market Offer, but network and wholesale costs have also risen. These two components make up the bulk of the final bill, accounting for 33-48 per cent (network) and 31-44 per cent (wholesale) of DMO 7 draft prices. As the energy transition progresses with new network investments and the shift to renewables, storage, and gas, these costs will require closer focus. Last week, we explored retail costs; this week, we examine the network and wholesale cost components.

BY Australian Energy Council Mar 27 2025