What is a Network Tariff Review?

Commercial Energy Brokers

There is no doubt that energy is a complex category and when it comes to commercial energy and MultiSites it can be even more confusing. 

In this series of articles, MIC Energy Brokers is here to help demystify commercial energy jargon and to help secure competitive energy rates for your business, that will help save you time and your business money. 

Network Tariff Reviews or NTR’s 

You may have seen Network Tariff charges on your energy bill, so what exactly are they? 

Network Tariffs have been a regulated charge set by the network distributor and approved by the Australian Energy Regulator (AER) since 2014. 

These charges cover the creation and maintenance of the poles and wires that deliver electricity to your business. 

For large market or commercial customers, these tariffs are “passed-through” from the distributor and will appear as a separate line item on your energy bill from your retailer. 

Tariffs can change by your network distributor, usually at the start of the Australian financial year for most states or in Victoria on January 1st. 

However, it is unlikely that your retailer will proactively review these charges and, in some circumstances, a one-off event that increases your demand/load could increase your Network Tariff charges, resulting in you ending up on the wrong tariff and end up that you may be overpaying, this is due to your network tariff being unique to the energy requirements of your business. As tariffs are unique to each site, if you have multisites this further complicates the energy landscape,  

How often should I get a tariff review? 

Network tariffs can be changed once a year. MIC Energy Brokers believe that reviewing your network tariff annually is beneficial as although routine price changes only occur once a year, your business’s energy profile may have changed which could impact what you pay for your network tariff charges.  

If you are in Victoria, we recommend that we review your charges in February, or in other states in August, this is so that we have a recent bill with any annual price changes that have been made by the network distributor. 

Secure your free Energy Tariff Review 

Whether or not you are a customer of MIC Energy Brokers, we are happy to provide you a complementary network tariff review. To get in touch email [email protected] or call our commercial team on 1300 957 721.

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