Your Electricity Bill Is Higher Than Expected: What to Check First

The bill is $40 more than last time. Your first thought is that something's gone wrong. Your second is whether you can pay it by the due date.

Before you do anything else, give the bill ten minutes. A higher total can come from several places, and only some of them mean you used more electricity. Working out which one it is tells you what to do next: adjust your budget, query the bill, or look at a different plan.

Here's a step-by-step check, using a clearly made-up bill as an example.

Step 1: Compare billing days, not just totals

The total on the front of your bill is the least useful number on it. What matters is how many days the bill covers and what you paid per day.

Billing periods vary. One bill might cover 28 days and the next 35, depending on when your meter was read. A longer period means a higher total even if your daily usage hasn't changed at all.

Here's an illustration with fictional numbers. Say your plan charges a supply charge of $1.20 a day, plus 30 cents per kilowatt hour (kWh), and you use 14 kWh a day:

• Bill A, 28 days: $151.20 total, which is $5.40 a day
• Bill B, 35 days: $189.00 total, which is still $5.40 a day

Bill B is $37.80 higher, but your daily cost is identical. Nothing changed except the length of the billing period.

To check your own bill, divide the total by the number of days. Do the same for your last bill, ideally the same season last year too. If the daily cost is similar, the bill probably isn't wrong. It's just longer.

Step 2: Check your daily usage

Most bills show your average daily usage in kWh, often with a small graph comparing recent periods. This tells you whether you actually used more power.

If daily usage has gone up, think about what changed in that period:

• Heating or cooling running more often
• More people at home during the day
• A new appliance, a second fridge or a pool pump
• School holidays or working from home

Comparing to the same season last year is more useful than comparing to last quarter, because heating and cooling make such a difference. Our guide to winter energy bills has ideas for the colder months.

Step 3: Check rates, supply charges, credits and discounts

If your usage is steady but the daily cost has gone up, the price may have changed. Look at:

• Usage rates. The cents per kWh you pay. Retailers can change these, usually with notice.
• Supply charge. The fixed daily amount you pay regardless of usage.
• Expired discounts. Many plans offer a discount that ends after 12 months, or one that only applies if you pay on time.
• Missing credits. Government rebates, concessions or solar feed-in credits that appeared last time but not this time.

Check your inbox or letterbox for any notice of a price change from your retailer. If a discount has ended, that alone can explain a noticeable jump.

Step 4: Find out if the meter reading was actual or estimated

Your bill should say whether the reading was actual or estimated. Sometimes a meter can't be read, for example because of a locked gate or a dog in the yard, so the retailer estimates your usage instead.

Estimates can be too high or too low. If it's too low, your next actual reading catches up and that bill looks bigger. If it's too high, you may be paying for power you didn't use.

If you think an estimate is off, take a clear photo of your meter showing the reading and the date, and contact your retailer to ask for a review. The government's Energy Made Easy site explains how to read your bill and what to do about estimated readings.

Step 5: Ask your retailer specific questions

Once you've done the checks, you're in a much stronger position to call or message your retailer. Specific questions get specific answers. Here's a short template you can adapt:

"Hi, I'm calling about my latest bill for account [number]. It covers [X] days, compared with [Y] days last time. My daily cost has gone from $[A] to $[B]. Can you tell me: was the reading actual or estimated? Have my rates or supply charge changed? Has any discount or credit ended? And is there a better plan available to me with you right now?"

A few things to keep in mind:

• Don't ignore the due date. If you're querying the bill, ask how that affects the payment date. Don't assume a query pauses it.
• Don't expect a particular result. The bill may be correct. The point is to understand it.
• Ask about help if paying is hard. Retailers have to offer support to customers having trouble paying, such as payment plans or a hardship program. You can ask without having to explain everything.

Step 6: Then, and only then, compare plans

If the bill is correct but your rates are simply higher than what's available, it may be worth comparing plans. Start with free government comparison tools:

• NSW, Queensland, South Australia, Tasmania and the ACT: Energy Made Easy
• Victoria: Victorian Energy Compare
• Western Australia: the Economic Regulation Authority
• Northern Territory: Power and Water

You can also ask your current retailer to move you onto their best available offer. Our guide on how to compare utility providers covers switching in more detail. Beforepay's free Compare & Save also lets you compare plans from a range of electricity, gas, internet and mobile providers, so you can see options side by side.

Your next step

Grab your last two bills. For each one, write down the number of days, the total, the daily cost and whether the reading was actual or estimated. That one table usually tells you which of the steps above explains the difference. If it doesn't, you've got exactly the questions to ask your retailer.

And if the bill is right but the timing is tough, our 30-minute bill reset can help you find room elsewhere before the next one arrives.

This article is general information only. It does not take your personal circumstances into account and it is not financial, tax or legal advice.