Understanding network tariffs

What is a network tariff?

A network tariff is a classification assigned by your electricity network distributor that determines how your electricity network usage is charged. It reflects the type of connection, usage patterns, and metering setup at your premises.

Network tariffs recover the costs to build, operate and maintain the poles and wires that are used to transport electricity. Network tariffs are targeted at retailers who package them with other costs, such as the cost of wholesale energy, in their service offerings to customers. As such, the retail electricity tariff may not directly reflect the network tariff.

The Network Tariff is represented by a Network Tariff Code. Each tariff code defines:

• The structure of charges (e.g., flat rate, time-of-use, demand-based)
• The technical requirements (e.g., smart meter, controlled load)
• The customer category (e.g., residential, business)

How do network tariff codes relate to retailer energy plans?

Retailers may use your network tariff code to determine which retail energy plans you are eligible for. This is because:

• Some retailers build their retail plans to align with the structure of network charges: Your tariff code communicates the underlying structure of network charges.
• Eligibility limitations: Retailers may require a customer to be on a specific network tariff to access some retail plans (e.g., time-of-use or solar feed-in) and so need to know your network tariff code.
• Metering requirements: Plans may require advanced metering that aligns with your tariff code.

Is it possible to request a new network tariff code?

If your electricity usage has changed or you’ve made upgrades (e.g., installed solar panels or changed business operations), you may be eligible for a different network tariff code.

To request the change simply contact your electricity retailer (the company that sends your bill) and provide a brief explanation of the change (e.g., added solar, wish to access different plans)

The retailer will:

• Assess your eligibility for a change (against the metering requirements of a different tariff and the network tariff assignment policies)
• If you are eligible, submit a request to the network distributor
• Inform you of any metering upgrades or costs involved