Energy prices explained
Understand the factors behind energy prices, what goes into an average Australian energy bill, and ways Origin can help you stay on top of your energy.
How can we help?
Energy plan pricing
Who sets energy prices?
Energy retailers generally offer two types of energy plans: Market Offers and Standing Offers.
While retailers set the price for what’s known as Market Offers, there is another type of offer called a Standing Offer which has terms set by the AER or, in Victoria, the Essential Services Commission (ESC). In Victoria, the Standing Offer for electricity is called the Victorian Default Offer.
No matter what kind of tariff you’re on, you can always choose between a Standing Offer or a Market Offer.
Feel free to contact us to speak to an energy specialist about which might be right for you.
Understanding tariffs
What is an energy tariff?
A tariff is the way that you’re charged for the energy you use.
Your tariff type is typically determined by the type of meter you have and how it’s been set up.
Most common forms of energy tariff pricing structures are flat tariff, where you pay the same rate no matter what time you use energy, and time-of-use tariff where usage rate is determined by the time you use electricity.
In addition to usage charges, most energy plans also include a daily supply charge. This is a charge for being connected to the electricity grid, no matter how much energy you use.
Energy retailers, like Origin, are responsible for setting prices – also known as rates – that apply to those tariffs.
What are the types of tariffs?
Like most energy retailers, we offer single rate, time-of-use, and natural gas tariffs with varying charges.
- Singe rate (flat rate) electricity – you pay the same rate for electricity all day, no matter what the time is.
- Time-of-use electricity – you pay different rates during different times of the day and night – generally peak, shoulder and off-peak. You can reduce your bills by trying to use less energy at peak times.
- Natural gas – you generally have a single rate tariff that sets out charges in “blocks” of usage. You ordinarily pay more for the first block of natural gas you use, a lower charge for the next block, and a lower charge again for the remaining block.
Useful information about tariffs
Tariffs are charges for your usage alongside your daily supply charges. When you look at your electricity bill or in the “View plan” area of My Account, can you see one usage rate labelled something like “General usage”? If so, you’re probably on a flat rate. If you see different types of usage charges, you’re likely on a time-of-use tariff.
You may notice your tariff changes when new energy prices or rates take effect.
What are solar feed-in tariffs?
A solar feed-in tariff (FiT) is a way for you to be paid for the electricity your solar panels create that you don’t use for your home.
- Time-Varying (Time-of-Use): You get different rates on your solar exports depending on when you export electricity into the grid.
- Retailer-Specific Rates: Currently, FiT rates are largely determined by individual electricity retailers. This means rates can vary significantly between different energy providers and even between different plans from the same retailer.
- Single Rate: You get a flat rate per kWh for all electricity exported, regardless of the time of day.
Useful information about solar feed-in tariffs
If your home generates more power than you use, that extra energy goes back into the main electricity grid, and your energy retailer pays you for it. If you have solar panels installed, you could be eligible for a feed-in tariff (FIT). A FIT is what we pay back on your electricity bill for every kWh of electricity your solar system exports back into the grid.
How do I check what tariff I am on?
To find out what tariff you are on with us, the easiest method is through My Account or the Origin app. Here’s a breakdown of the steps:
- Log in to My Account or the Origin app
- Navigate to “View plan”: this will display the details of your current energy plan.
- Check your plan details: on the “Plan details” screen, you should see information about your:
- Plan name
- Rate type (this indicates your tariff)
- Supply charge
- Usage charges
- Any applicable benefits or feed-in tariffs (if you have solar)
What to look for to identify your tariff type:
- Flat Rate: if you see a usage rate labelled “General usage” and no specific peak or off-peak times mentioned, you are likely on a single rate tariff. This means you pay the same rate for energy regardless of the time of day.
- Time of Use: if you see different types of usage charges, often broken down into “peak,” “shoulder,” and “off-peak” rates, you are on a Time of Use tariff. This means the price you pay for electricity varies depending on when you use it.
How can I check if I have a smart meter?
Smart meters provide accurate energy usage data, enabling you to better understand and manage your usage. Here’s how to check if you’re on a smart meter:
- Log in to My Account or the Origin app
- Navigate to the “Usage” screen
- Observe your usage view:
- If you have a smart digital meter: you will be able to see your usage broken down by hourly, daily, monthly, and bill period tabs.
- If you have a basic meter: you will typically only see your usage by bill periods.
What a smart meter physically looks like (general characteristics):
While you can determine if you have a smart meter via My Account, it’s also helpful to know what to look for on the meter itself:
- Digital display: smart meters are digital. However, it’s important to note that some older “basic” meters also have a digital display. The key difference is the ability to send data remotely.
- No manual reading required: if you’ve never had a meter reader visit your property, or if your bills are consistently based on “actual” reads rather than “estimated” ones, it’s highly likely you have a smart meter. Smart meters automatically send usage data at regular intervals (e.g., every 30 minutes) over secure mobile networks.
Variable rates and plan benefits explained
What is an energy variable rate?
A variable rate means your energy prices could go up or down during the length of your plan.
Variable rates can be influenced by various factors, including what it costs us to source and supply energy to you and conditions in the wider energy market.
Rates and charges are the actual prices you pay for your energy.
They’re normally split into usage charges (the variable part of your bill that changes according to how much energy you use) and supply charges (the daily charge to get an energy supply to your property).
Useful information about rates and charges
Comparison to the reference price: when we advertise electricity plans, we’re required by law to compare the plan to a regulated comparison price. In NSW, SA and parts of QLD, this is the Default Market Offer (DMO) – a comparison price set by the Australian Energy Regulator (AER). In Victoria, it’s the Victorian Default Offer (VDO) reference price. In the ACT, it’s the ACT reference price. All plans are compared against this benchmark price. The idea is that all energy providers use the same benchmark prices, so you can easily weigh up one plan against another when you’re shopping around.
What’s important to understand is that the comparison to the reference price is not a discount off your bill. It’s in place to let you compare our prices against the reference price and other energy retailers’ prices at a specific point in time.
What are plan benefits?
Plan benefits are features of the plan that last for the length of the plan.
They can be things like Everyday Rewards points, special feed-in tariff rates, discounts or credits.
Some examples of plan benefits include:
- Home assistance and emergency cover: Some plans offer membership to programs that provide support for common home emergencies like blackouts or leaks.
- Rewards programs: Like earning Everyday Rewards points on eligible energy plan usage and supply, which can then be converted into dollars to save on your shopping.
- Solar incentives: Higher feed-in tariffs (FITs) for customers with solar panels on eligible plans who export excess energy back to the grid.
How the electricity market works
There are four key stages in the lifecycle of how energy gets to your home or business. The National Electricity Market (NEM) is made up of Generators, Distributors, Retailers and Consumers.
Generators
Generators create electricity from sources like coal, gas, wind, hydro, and solar. They sell this power to retailers like Origin and on the National Electricity Market (NEM)^.
Distributors
Energy is supplied to customers via distributors, who own and maintain the network of power lines and poles used to deliver electricity to you.
Retailers
Retailers buy energy from generators and the NEM at a wholesale cost and sell it to customers at a retail cost. Origin is both a generator and retailer of electricity.
Consumers
Consumers (including residential and business customers) buy electricity from retailers, like Origin, at a retail cost by signing up to an energy plan.
^NEM prices, which change every five minutes, reflect supply and demand and are influenced by factors such as weather, season, time, and fuel costs.
We can help you identify who your energy distributor is, which is based on where you live.
What goes into an average Australian electricity bill?
We know understanding your energy bill can feel a bit overwhelming sometimes, so we’ve put together a simple
breakdown of what made up a typical household electricity bill*.
The slices of the pie that make up a typical household electricity bill
While exact numbers can vary depending on the market, where you live, and the time of year, these ratios provide a general idea of what makes up a typical household electricity bill.
Retail
~19%*
This includes energy retailers’ – like Origin’s – running costs, such as customer service and billing, management of your account, and other operating costs and retail margin.
Environment
~5%*
These costs relate to government programs aimed at promoting renewable energy generation.
Network
~39%*
This is usually a significant part of your bill. It covers the costs of building and running the power lines used to supply electricity to you.
Wholesale
~37%*
What retailers pay to buy electricity from the National Electricity Market (NEM) to supply households and businesses. NEM prices can fluctuate every five minutes.
*Source: ACCC, Inquiry into the National Electricity Market report: December 2024, Figure 3.6, report p. 67 / PDF p. 68. Figures are based on the ACCC’s average residential electricity customer cost-stack analysis for the National Electricity Market in 2023-24, nominal, excluding GST. Figures are a general NEM average and do not represent an Origin-specific bill, a current-year estimate, all jurisdictions or all tariff types. Figures are rounded.
Energy price changes Easy English guide
Everyone understands things differently. That’s why we’ve created an Easy English guide to understand energy price changes (PDF 1MB). Our goal is to make things helpful and accessible for everyone.
Home energy savings advice
Better managing your energy usage costs could mean a few simple changes that can make a big difference to your bill. Head to our energy savings advice hub for simple tips and tricks you may find useful.
Need more guidance? We’re here to support
We understand the cost-of-living pressures mean challenging financial times for our customers, who are juggling other household bills. Regardless of your situation, we have options to help you stay on top of your Origin energy bills.
Chip away with smaller payments
We get that high bills can put a lot of pressure on households, especially with energy prices increasing and utility bills hitting all at once.
You can spread out your payment into regular instalments, through BPay, Centrepay and more. You’ll pay the same amount every week, fortnight or month, making budgeting just that little bit easier.
Our team will work with you to find what suits you best. Get in touch with an energy specialist to talk through your options.
Financial support for your energy bills
Customers facing payment difficulties or hardship have our support and reassurance that we won’t turn the lights off when the going gets tough.
Our Power On program helps ease the burden of paying your energy bills. We’ll work with you to understand your situation and offer a payment plan that helps you stay on top of your bills. We can also give you practical energy efficiency tips to help you reduce your bills.
Support for Victorian customers in payment difficulty
We support our Victorian energy customers under the Payment Difficulty Framework.
Our team will work with you to understand your personal circumstances. We’ll arrange a payment plan that’s suitable for your needs and provide energy efficiency tips to reduce your energy bills.