Glossary of Electricity Terms

The Australian Energy Regulator (AER) regulates electricity markets in NSW, South East Queensland and South Australia. It sets the Comparison Price and Tariff Caps that apply to Standing Offers used to protect customers.

An Anytime Tariff charges the same rate for electricity no matter what time of day you use it. It’s also known as a flat-rate or single-rate tariff.

The Benefit Period is how long your plan’s advertised rates or discounts apply, usually 12 months. When it ends, your retailer may move you to new rates or a Standing Offer.

A Carbon Offset helps balance the emissions created by your electricity use by supporting projects that reduce or remove greenhouse gases, such as renewable energy or tree planting.

The Comparison Price is a benchmark annual electricity cost set by the AER that applies NSW, SE QLD and SA. Retailers must compare their market offers against it so you can more easily compare plans. For example, if the annual cost of a plan is 5% less than the Standing Offer tariff for a representative customer, the retailer will need to state “This offer is 5% less than the Comparison Price”.

The Contract Term is how long your electricity contract lasts. There is generally no-lock in contract if you decide to change or cancel the plan before the contract term ends.

A Controlled Load is a separate electricity supply for appliances like electric hot water systems, pool pumps or underfloor heating. Controlled Loads are metered separately from the main circuit and are usually charged at a different rate from your general household electricity. Check your bill to see whether you have Controlled Load 1 or 2 or both.

A Demand Tariff includes normal electricity charges plus an extra charge based on your highest level of electricity use during a set peak period each month. Demand charges typically apply during a set high-demand “peak window” (such as 4:00 PM to 9:00 PM), and are calculated based on the highest 30-minute reading during the peak window eacg month. The biggest spike sets the cost of demand charges so watch out! Residential customers have the option to switch to a Time of Use tariff.

The Default Market Offer (DMO) is the maximum annual cost of a Standing Offer in NSW, South East Queensland and South Australia. It provides price protection for customers who don’t choose a market offer.

A Feed-in Tariff (FiT) is the rate your retailer pays you for excess solar electricity exported from your solar system to the grid.

A Fixed Rate Plan locks in your electricity rates for a set period, usually 12 months. This protects you from price increases during that time, although prices are typically higher than variable plans. Very few retailers offer Fixed Rate Plans.

General Usage is the electricity used at your home on the main circuit. On Anytime Tariffs, all electricity is charged as General Usage. Also referred to as anytime usage or peak usage on some bills.

GreenPower is a government-accredited program that lets you choose electricity backed by renewable energy. By purchasing GreenPower, you help support renewable electricity generation in Australia. You can view GreenPower rates for each retailer here. For more information on the GreenPower scheme see the GreenPower web site.

Plans that offer a guaranteed discount mean that you will receive a discount on usage and/or supply charges without having to meet any conditions such as paying on time. These are sometimes referred to as unconditional discounts.

kVA is an abbreviation of kilovolt amp which is a unit of measurement for apparent power used for Demand/Capacity charges on some business tariffs.

kWh is an abbreviation for kilowatt hour and is the common unit of measurement for electricity usage.

A Market Offer is an electricity plan offered by a retailer with prices and conditions that are not regulated by government. These plans may include discounts or special features.

Refers to the electricity consumed during the off-peak time period of time of use (TOU) or flexible tariff plans.

Some plans that offer a discount require you to pay your bill by the due date or you will not receive the discount. These discounts are called Pay On Time discounts.

Refers to the electricity consumed during the peak period in a time of use (TOU) or flexible tariff plans.

The Reference Price was replaced by the Comparison Price (and applies in NSW, SE QLD and SA) from 1 July 2026. Older electricity information may still refer to the Reference Price.

Regulated tariffs (in NSW, SE QLD SA) include flat rate, time of use or Solar Sharer tariffs where a “tariff cap” has been set by the AER. A Regulated tariff has a maximum price on fixed supply and usage rates that apply for customers on a Standing Offer or Solar Sharer Offer. The tariff cap DOES NOT apply to Market Offers.

A Retailer Green Rating compares electricity retailers based on their environmental performance, including renewable energy investment and climate policies. Greenpeace and the Total Environment Centre prepared the Green Electricity Guide, most recently updated in 2018.

Shoulder Usage is electricity used between Peak and Off-Peak periods on plans with a time of use (TOU) tariff. Shoulder rates are lower than Peak rates but higher than Off-Peak rates.

A digital electricity meter that automatically records your electricity use and supports Time of Use and Demand Tariffs. Many Smart Meters communicate usage back to the retailer, removing the need for physical meter read and also enabling customers to access better information about their electricity use.

Solar PV refers to a solar photovoltaic system that uses a series of panels to convert light energy into electricity. Not to be confused with solar hot water systems that use encased copper pipes or evacuated tubes to use heat from the sun to heat hot water.

The Solar Sharer Offer (SSO) is a regulated Time of Use tariff available in NSW, South East Queensland and South Australia. It includes three hours of free electricity each day, with higher rates at other times and a daily fair-use limit during the free period. Households considering this tariff should aim to shift their power use into the free period.

A Standing Offer is the default electricity plan provided by your retailer if you haven’t chosen a Market Offer. It provides regulated pricing and customer protections. Retailers may move customers on Market Offer to a Standing Offer at the end of their market offer benefit period.

Super Off-Peak is a very low-cost electricity period offered on some Time of Use plans, including “free electricity” plans. It’s commonly designed to encourage EV charging or shifting electricity use.

The fixed daily charge you pay for being connected to the electricity network, regardless of how much electricity you use.

A Tariff Cap is the maximum usage and supply price allowed on a regulated Standing Offer (in NSW, SE QLD and SA). It does not limit the prices charged on Market Offers.

A Time of Use Tariff charges different electricity rates depending on when you use electricity. Rates are typically split into Peak, Shoulder and Off-Peak periods. Click here to view Time Of Use periods by Electricity Network

An Unregulated Tariff is a tariff where the AER does not set maximum usage or supply rates. Demand Tariffs are the most common example. However there is still a maximum annual cost which applies, called the Comparison Price. The Comparison Price for Demand tariffs does not include Demand Charges, so customers should be aware that additional charges will apply.

The amount you pay for the electricity you use, usually charged per kWh. This is a Variable cost, and depends on how much electricity you use.

The Victorian Default Offer (VDO) is the maximum annual cost of a Standing Offer in Victoria. It provides price protection for customers who haven’t chosen a Market Offer.