How knowing the anatomy of your energy bill could help you save

Ever stared at your energy bill and wondered where all that power is going? Understanding the anatomy of your energy bill can help you make smarter choices and potentially save some serious cash. 

Decoding your energy bill

First things first - let’s dissect your energy bill. Much like a tasty apple pie, your energy bill is made up of several slices. Each slice represents a different part of your household energy consumption. So, what are the biggest culprits gobbling up your power? Well, according to government statistics;

1. Heating and cooling: This is the biggest slice of the pie, consuming about 40% of the average Australian household’s energy. Whether you’re cranking up the air con in summer or the heater in winter, climate control is a major energy hog.
   
2. Water heating: This takes another hefty bite, using around 21% of your energy. From morning showers to washing dishes, heating water is a daily necessity that adds up.
   
3. Appliances: Fridges, washing machines, and other household gadgets account for about 18% of your energy use.
   
4. Lighting: All those lights you leave on when you’re not in the room? They make up about 6% of your bill. Switching to energy-efficient bulbs can make a big difference here.
   
5. Standby power: Devices left on standby, like your TV or game console, contribute to about 3% of your energy usage. Turning these off at the wall can save you a few bucks.
   
6. Other: The remaining 12%^ goes to various other uses, from powering your Wi-Fi to charging your devices.

Visualising your energy pie

Imagine your energy consumption as a pie chart. Each slice represents a different category of usage. Here’s what your pie might look like based on average Australian data:

How to trim down your slices

Now that you know what’s gobbling up your energy, here are some tips to trim those slices and save on your bill:

• Heating and cooling: Use ceiling fans, set your temperature a few degrees lower in winter and higher in summer, and make sure your home is well-insulated.
• Water heating: Install a water-efficient shower head, fix any leaks, and consider a solar hot water system. Swap baths for showers and batch wash your dishes.
• Appliances: Upgrade to energy-efficient appliances and use them wisely. For instance, wash clothes in cold water and hang them out to dry instead of using a dryer.
• Lighting: Switch to LED bulbs and turn off lights when not needed. You’d be surprised how many lights we leave on around the house that are not needed.
• Standby power: Unplug devices when not in use or use a smart power strip or timer to control when your devices need to be switched on and off.

According to Mozo research and the ABS Data, energy costs have risen over the past few years. 

"Excluding rebates, since the June quarter of 2023 electricity and gas prices have risen by 17%^, which is a significant jump in cost for an expense you can't really live without," said Rachel Wastell, Mozo money expert. 

Mozo research shows that by making simple changes and comparing providers, you can reduce your energy usage by up to $447* annually and save hundreds of dollars each year.

So what now?

Understanding the anatomy of your energy bill can help you make smarter choices about your energy use. By knowing where your power goes, you can take steps to reduce consumption, save money, and do your bit for the environment. 

So, next time you look at your energy bill, you’ll know exactly what each slice of that pie represents. And remember, it always pays to compare energy providers to know that you’re getting the best bang for your buck.

https://www.actewagl.com.au/news-and-info/energy-savings https://www.energy.gov.au/households/appliances

^Latest Australian Consumer Price Index

*The savings were calculated by comparing the market average cost of electricity and gas to the cheapest on offer based on medium usage. This is based on the Mozo database and the data was collected as part of the Mozo Experts Choice Awards for Energy 2023, where experts reviewed over 2,438 energy products from 37 energy retailers at the end of August 2023.