4F

Household bills

Reading electricity, gas and water bills: meter readings, usage charges, daily supply charges, solar feed-in credits, GST, and the running cost of appliances in kWh.

Every household pays for electricity, water and usually gas. The bills look complicated, but each one is the same two parts: what you used, times a rate, plus a fixed charge for being connected. Once you can read one, you can read them all, and you can check whether switching to a cheaper plan is worth it.

Electricity bills

Electricity is measured in kilowatt-hours (kWh). One kWh is the energy used by a $1$ kW appliance running for $1$ hour. A bill has:

  • a usage charge: kWh used $\times$ price per kWh;
  • a daily supply charge: a fixed amount for every day of the billing period, even if you use nothing.

Usage is the difference between the current and previous meter readings. Prices on residential bills include GST.

Example 1●●

A household's meter read $48\,213$ kWh at the last bill and $49\,152$ kWh now, $91$ days later. The plan charges $34.10$ cents per kWh and a supply charge of $115.2$ cents a day. Find the bill.

Usage $= 49\,152 - 48\,213 = 939$ kWh
Usage is current minus previous reading.
Usage charge $= 939 \times 0.3410 = \$320.20$
Change cents to dollars: 34.10 cents = 0.3410 dollars.
Supply charge $= 91 \times 1.152 = \$104.83$
The supply charge applies to every day of the period.
Bill $= 320.20 + 104.83 = \$425.03$
Add the two parts.
InteractiveRead the meter, build the bill
Try this

Check Example 1. Then work out what share of the bill is the supply charge. Would halving your usage halve your bill?

Add $400$ kWh of solar exports. How much does that save? Compare with using those $400$ kWh yourself instead of buying them at $34.10$ cents.

Solar feed-in credits

Homes with rooftop solar sell the power they don't use back to the grid and get a feed-in credit, often only a few cents per kWh. Because buying power costs about ten times as much as selling it, solar saves the most when you use it as it's made: running the dishwasher or charging the car in the middle of the day.

Gas and water

Gas works the same way, but usage is measured in megajoules (MJ). Water is measured in kilolitres (kL), where $1$ kL $= 1000$ L. In Sydney, water bills also include fixed service charges for water and wastewater.

Example 2●

With example prices: (a) a gas bill for $4350$ MJ at $3.9$ cents per MJ plus $70$ cents a day for $91$ days; (b) water usage of $62$ kL at $\$2.67$ per kL. Find each charge.

(a) $4350 \times 0.039 + 91 \times 0.70 = 169.65 + 63.70 = \$233.35$
Usage times rate, plus supply charge times days.
(b) $62 \times 2.67 = \$165.54$
Kilolitres times the price per kilolitre.

Running an appliance

Energy used (kWh) $=$ power (kW) $\times$ time (hours). A $2400$ W heater is $2.4$ kW. Run for $5$ hours a day for $30$ days, it uses $2.4 \times 5 \times 30 = 360$ kWh. At $32$ cents per kWh, that's $\$115.20$ a month, which is why heating shows up on winter bills.

Your turn

A bill covers $90$ days. The household used $1240$ kWh at $30.8$ cents per kWh, and the supply charge is $110$ cents a day. Find the total.

Show the working

Usage: $1240 \times 0.308 = \$381.92$. Supply: $90 \times 1.10 = \$99$. Total: $\$480.92$.

Flashcards
Usage from a meter
Current reading $-$ previous reading
Bill
Usage $\times$ rate $+$ days $\times$ supply charge
Energy in kWh
Power in kW $\times$ hours
Practice
  1. An electricity meter read $12\,480$ kWh last quarter and reads $13\,215$ kWh now. Find the usage.

  2. Find the usage charge for $735$ kWh at $32$ cents per kWh.

  3. Find the supply charge for $92$ days at $98$ cents a day.

  4. A home exports $420$ kWh of solar power at a feed-in rate of $6$ cents per kWh. Find the credit.

  5. An electricity bill is $\$286$, including GST. How much GST does it include?

  6. Find the cost of $48$ kL of water at $\$2.67$ per kL.

  7. Which statement about the daily supply charge is true?

  8. A $\$425.03$ bill covers $91$ days. Find the average cost per day, to the nearest cent.

  9. Exam style: A $2400$ W heater runs $5$ hours a day for $30$ days. Electricity costs $32$ cents per kWh. Find the cost.

  10. Exam style: A $92$-day bill has usage of $860$ kWh at $33$ cents per kWh, a supply charge of $105$ cents a day, and a solar credit of $310$ kWh at $5$ cents per kWh. Find the amount due.

Formula sheet