Your power bill just arrived, but you’re kinda scared to look at it. It seems like every time it arrives, the number gets bigger.

Unfortunately, at some point you’ll have to work up the courage and see what you’re in for this cycle. However, understanding a bit more about how your electric bill works means you could bring that price down the next time you get your bill.

Read on to learn what you need to know!

Electricity Service Charges

Service charges are a set cost of electricity that everybody pays for the privilege of being connected to electricity. Different service providers charge different fees, but within the same provider, everybody pays the same.

Pretty much the only way to bring this charge down is to switch to a different service provider. With government-regulated tariffs, though, these fees don’t change much. In Canberra, they range from about $0.80 to $1.50.

Usage Fees for Electricity

The usage fees are where you can really make a difference. These are the charges for how many kWh you actually use. Again, different companies have slightly different rates. However, you can make the biggest difference with your energy use habits.

Tips for Reducing Electricity Use

Thankfully, there are many tricks you can take advantage of to reduce your electric bill. Don’t worry, they don’t all involve turning down the heat and wrapping up in a blanket.

Time Your Electricity Use
You’ll notice that there isn’t one set price per kWh on your bill. During peak times of energy use, the price per kWh tends to go up. Your bill may label the rate as peak, demand, or single.

Find out what those times are and try to use your heaviest appliances during off-peak hours when the tariff is lower. You can even put appliances like the hot water heater or pool pumps onto a separately metered electrical supply that will only use off-peak rates.

Add Solar Panels
Solar panels are a hefty investment up front, but incentives from the government bring the cost down considerably. With part or all of your electricity coming from the panels, your bills will drop significantly.

Unplug Unused Appliances
Electrical devices like computers, microwaves, TVs, and even phone chargers draw a small amount of power even when they’re off. You can reduce this energy drain by unplugging appliances when they are not in use.

Turn on the Eco Mode
Modern appliances give you the option of running on an eco mode. However, this mode only helps you save energy if you use it.
Also, make sure to efficiently use your appliances. For example, always run a full load in the dishwasher and choose the appropriate water level for your laundry machine.

Bring on the Lower Power Bills!

Follow these tips and perhaps the next time you open your power bill, the amount will have gone down a little. Small changes in our daily habits can make a huge difference over time.