Total network charges, which Essential Energy passes to electricity retailers who recover these costs from customers through electricity bills, include:

• Essential Energy’s distribution network charges – revenue Essential Energy can recover from customers to fund network investment and maintenance
• Metering charges – which relate to legacy meters and were previously collected through Alternative Control Services fees
• Transmission network charges – from transmission network businesses
• Levies from government programs – including for the NSW Government Climate Change Fund, NSW Electricity Infrastructure Roadmap, and the Queensland Solar Scheme.

Retailers choose how they bundle the costs of these components into customers’ electricity bills.
Network charges make up about half of customers’ total retail bills, with generation and retailer charges making up the other half.

Essential Energy continues to work to keep customers’ network charges as low as possible. In real $2024–25 terms, a typical residential customer’s annual distribution network charge reduced to $854 in 2024–25, which was a saving of $543 per annum (39%) from the 2012–13 peak of $1,397. Over the same period, a typical small business customer’s annual distribution network charge reduced by $2,430 (39%), decreasing to $3,743 in 2024–25, from $6,173 in 2012–13.

Essential Energy’s proposed price increases for 2025–26 were approved by the AER and took effect on 1 July 2025. The increases incorporate the total network charges listed on this page. If passed on in full by retailers, compared to 2024–25, customers’ annual network electricity bills will increase by an average of $74 (7.5%) for residential customers and $203 (6.4%) for small business customers. More than half of this increase (55%) is due to increases in the costs that Essential Energy collects on behalf of others (transmission network charges and levies from government programs). The levies collected on behalf of the NSW Government go towards addressing climate change and promoting the energy transition for a lower emissions future.

2025–26 price increases for ancillary network services and public lighting were also approved by the AER, although overall the price increases approved for 2025–26 are lower than the cost-reflective prices of supplying these services. Ancillary network service fees increased by 3.95% from 1 July 2025 across both quoted service labour rates and fixed fees. This increase includes the Consumer Price Index (CPI) and the approved revenue path from the 2024–29 AER approved Final Determination. Public Lighting charges increased by 2.42%, in line with CPI and the AER approved Determination.

The AER also approved expenditure for an eight-year project to address bushfire risk in newly identified high risk areas.

Two-way pricing tariff structures encourage customers who generate energy behind the meter (such as from solar panels and batteries) to use the energy themselves when grid demand is low and to export into the network when grid demand is high. This is done by offering a rebate for exports into the grid during the evening peak and applying a charge for exports during the middle of the day (above a free basic export level).

Essential Energy introduced two-way pricing tariff structures from 1 July 2024, as part of the AER-approved Tariff Structure Statement (TSS) for 2024–29. Two-way pricing tariffs applied to all storage (battery) connections from 1 July 2024. They were also applied as the default Sun Soaker tariff from 1 July 2024 for all new customers, customers with meter changes, and new or updated consumer energy resources (such as solar panels). For these customers, export pricing commenced on 1 July 2025. Customers assigned to a Sun Soaker tariff can choose to switch to the Opt In Demand Time of Use tariff, a cost reflective tariff that includes a demand component without the export charge.

With 34% of our customers having solar panels, the two-way tariff structure is designed so that only customers who export electricity fund the network upgrades necessary to support this two-way flow of electricity. Funds received will be used to offset export rebates to customers and supplement the costs of upgrading the network.

As part of the ongoing energy transition, tariff trials are crucial for Essential Energy to design and test network charges that reflect the characteristics of our network and customers – addressing network challenges and embracing new technologies in cost-effective ways. Trials are undertaken in collaboration with customers and stakeholders, to facilitate new ideas, a shared understanding of the need for change, and consideration of the value proposition for all stakeholders. This approach also maintains flexibility for designing and implementing trial tariffs at a time of shifting government policy and rapid technological and regulatory change.

Two trial tariffs will operate in 2025–26:

1. Grid Connected Storage Tariffs (High Voltage (HV) and Low Voltage (LV) versions) – two tariffs that encourage the efficient use of storage technologies to assist with managing network issues.
2. Flexible Load Tariff – to support customers with highly flexible loads, including both large LV and HV customers, on dynamic connection agreements.

Learnings from these trials will inform our 2029–34 TSS engagement program.

Essential Water revenue and pricing information is provided in ‘Essential Water’.

Intium, Essential Energy’s commercial subsidiary, receives revenue from projects completed for customers. See ‘Intium’.