Western Australia's Electricity Costs: A Detailed Overview

what is the cost of electricity in western australia

The cost of electricity in Western Australia varies depending on several factors, including the region, power consumption, provider, and type of plan. The Western Australian Government regulates electricity prices for Synergy and Horizon Power, the two main electricity retailers in the state. Electricity prices in Western Australia are typically reviewed annually, with changes taking effect around July. As of July 2024, electricity in Western Australia was charged by the unit, with one unit representing one kilowatt-hour (kWh). The average cost per kWh in Australia is around 33 cents, but prices can differ across states and territories due to varying generation and network costs.

Characteristics Values
Basis of electricity cost Per unit of one Kilowatt-hour (kWh)
Average cost per unit 33 cents
Factors influencing electricity cost Power consumption, location, provider, type of plan
Tariff types Single rate, time of use
Tariff plans K2, L2, NML2, L4, C2, D2
Tariff plan factors Consumption, purpose (residential, business, charitable), device capacity
Price changes Around 1 July annually
Price change notice At least 5 days
Price influencers Generation costs, network costs
Generation cost example Renewable energy vs coal and gas plants
Network cost details Distributor responsibility, maintenance, supply
Network charge proportion Up to half of the energy bill
Western Australia electricity subsidies Funded by the WA State Government

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Electricity tariffs and fees

The cost of electricity in Western Australia is influenced by various factors, including power consumption, location, provider, and plan type. Electricity prices in the state are reviewed annually by the Western Australian Government as part of the State Budget process, with changes typically taking effect around July.

Western Australia has two primary electricity providers: Synergy and Horizon Power. Horizon Power delivers energy to regional and remote areas of the state, and their tariffs are subsidised by the WA State Government to ensure that customers pay lower than the actual cost of electricity supply.

Horizon Power offers various tariffs catering to different customer segments:

  • Residential Tariffs: The K2 tariff is designed for premises used for both residential and business purposes, with an annual consumption limit of less than 160 megawatt-hours.
  • Business Tariffs: The L2 tariff applies to business customers with electricity consumption of up to 50 megawatt-hours per annum (up to 137 units daily on average). The L4 tariff is for businesses that consume more than 50 megawatt-hours per annum or over 137 units daily on average.
  • Charitable Organisation Tariffs: The C2 tariff is available to small voluntary and charitable organisations, while the D2 tariff is designed for charitable or benevolent organisations providing residential accommodation.
  • Buyback Bonus: Horizon Power offers a buyback scheme for eligible customers with renewable energy systems over 5kW. Customers can export excess solar energy during peak hours and receive rewards, especially during the summer season.

Synergy's electricity rates are not readily available online, and customers are advised to contact them directly for their specific rates.

It is important to note that electricity prices in Western Australia can vary based on the provider and plan chosen. Customers are encouraged to review their plans and compare different providers to ensure they are getting the best value for their energy needs.

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Horizon Power fees

The cost of electricity in Western Australia (WA) varies depending on several factors, including the region, the electricity retailer, and the type of tariff or plan chosen. One of the unique features of the electricity market in WA is the presence of multiple electricity distributors or regional providers, each serving specific areas of the state. One such distributor is Horizon Power

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Business electricity tariffs

Electricity prices in Western Australia are regulated by the state government. The government-owned electricity retailers, Synergy and Horizon Power, supply electricity to the state. The Western Australian Government considers changes to electricity tariffs, fees, and charges annually as part of the State Budget process.

Horizon Power offers several business electricity tariffs. The K2 tariff is for premises used for both residential and business purposes, with electricity consumption of less than 160 megawatt-hours per year. The L2 tariff is for customers who use electricity solely for business purposes, with consumption of up to 50 megawatt-hours per year (up to 137 units per day on average). If your tariff is listed as 'NML2', it means you are being charged as a non-metered L2 customer. The L4 tariff is for business customers who consume more than 50 megawatt-hours per year (more than 137 units per day on average).

Synergy, the primary energy retailer for Western Australia's main grid network, also offers business electricity tariffs. Contestable customers outside the South West Interconnected System (SWIS) can choose their retailer and negotiate rates. Customers consuming between 50 and 160 megawatt-hours per year can either pay the capped tariff offered by Synergy or choose another retailer with negotiated prices.

It is important to note that electricity tariffs in Western Australia are subject to change, and customers should contact their electricity retailer or refer to their pricing information to determine the specific tariffs that apply to them.

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Electricity pricing rules

Electricity consumers in Western Australia are classified as either contestable or non-contestable customers. Non-contestable customers are those within the South West Interconnected System (SWIS) who consume less than or equal to 50 megawatt-hours of electricity annually (an average of 137 units per day). These customers are supplied by Synergy and pay electricity prices set by the Western Australian government under the relevant electricity by-laws. Residential households and small businesses typically fall into this category.

Contestable customers, on the other hand, are those within the SWIS who consume more than 50 megawatt-hours of electricity per year (again, an average of 137 units per day). These customers have a choice of electricity retailer and can select from a range of tariffs and plans.

The Uniform Tariff Policy ensures that small-use customers of Synergy and Horizon Power are charged the same rate, regardless of their location. This policy is particularly relevant for remote regions, where the costs of supplying electricity are typically higher. The additional costs of supplying these areas are partially funded by the Tariff Equalisation Contribution, which is included in electricity network charges in the SWIS.

Horizon Power offers a range of tariffs for different customer types, including residential, business, and charitable organisations. Their tariffs are generally lower than the actual cost of purchasing, generating, distributing, and retailing electricity, with the difference subsidised by the WA State Government.

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Average electricity cost

The average cost of electricity in Western Australia varies depending on several factors, including the region, power consumption, provider, and type of plan. Western Australia has two main electricity providers: Synergy and Horizon Power.

Synergy

Synergy's electricity prices are regulated by the Western Australian Government and are determined under electricity by-laws. Residential households and small businesses that consume less than or equal to 50 megawatt-hours of electricity annually (an average of 137 units per day) are typically considered non-contestable customers and are supplied by Synergy. These customers pay electricity prices regulated by the government.

Horizon Power

Horizon Power services regional and remote areas of Western Australia. Their tariffs are generally lower than the actual cost of purchasing, generating, distributing, and retailing electricity. The difference between the tariffs customers pay and the actual cost is subsidised by the Western Australian Government. Horizon Power offers various tariffs, including the K2 tariff for premises used for a combination of residential and business purposes with consumption below 160 megawatt-hours per annum. The L2 tariff is for business purposes with consumption up to 50 megawatt-hours per annum, and the L4 tariff is for business purposes with consumption above 50 megawatt-hours per annum.

The cost of electricity in Western Australia is typically charged by the unit, with one unit representing one kilowatt-hour (kWh). The average cost per kWh in Australia is around 33 cents, but prices can vary across states and territories. Western Australia's electricity prices are reviewed annually, with changes typically taking effect from 1 July each year.

Frequently asked questions

The cost of electricity in Western Australia varies depending on factors such as power consumption, location, provider, and plan type. The average cost of electricity in Australia is around 33 cents per kilowatt-hour (kWh). Western Australia has two main electricity providers: Synergy and Horizon Power. These providers offer different tariffs based on usage and customer category.

Western Australia has a range of electricity tariffs, including:

- K2: For premises used for both residential and business purposes, consuming less than 160 megawatt hours per annum.

- L2: For business purposes, with consumption up to 50 megawatt hours per annum (up to 137 units or kWh per day on average).

- L4: For business purposes, with consumption of 50 megawatt hours or more per annum (more than 137 units or kWh per day on average). This tariff also applies to customers with mixed residential and business use exceeding 160 megawatt hours per annum.

- C2: Available to small voluntary and charitable organizations.

- D2: Applicable to charitable or benevolent organizations providing residential accommodation.

Electricity prices in Australia typically change once a year, around July 1st. The Australian Energy Regulator (AER) and state bodies set new reference prices, and most retailers adjust their rates accordingly. However, some retailers may stagger changes between July and September, and prices can also be modified at other times with at least five days' notice.

In Western Australia, electricity consumers are categorized as contestable or non-contestable customers. Non-contestable customers do not have a choice of electricity retailer and are typically supplied by Synergy. These customers consume less than or equal to 50 megawatt hours of electricity per year (an average of 137 units or kWh per day) within the South West Interconnected System (SWIS). Residential households and small businesses usually fall into this category. Contestable customers, on the other hand, have a choice of electricity retailer and consume more than 50 megawatt hours per year (more than 137 units or kWh per day) within the SWIS.

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