Also known as a service charge or fixed charge, the daily supply charge is essentially the cost you pay to be connected to the electricity grid.
The electricity grid is managed by a number of companies, called networks or distributors – think Ausgrid, Powercor, Citipower or Energex. Each distributor is responsible for a certain geographical area so regardless of which power company you decide to join, your distributor won’t change (unless you move to a new area.)
The daily service charge is a fixed daily amount that’s charged as part of the metering and distribution services provided by the distributor that looks after your area.
The distributors are responsible for maintaining the electricity poles and wires that are used to transport energy to your home. If you don’t have a smart meter, the distributor is also the company that sends someone out to read your electricity meter.
Essentially, the distributor passes it’s costs on to your power company who in turn pass those costs on to you.
The daily supply charge is a fixed daily charge which means it isn’t based on the amount of energy you use. If you’ve ever come home to a power bill after being away on holiday, chances are your daily supply charge is to blame.