Gas Tariffs Explained
A plain-English guide to gas tariffs in Australia, including supply charges, MJ rates, blocks and bundle checks.
Sancia PereiraEnergy Markets Analyst
Gas tariffs are usually easier to read than electricity tariffs, but they are still easy to oversimplify. In most cases, a gas tariff has two core parts: a daily supply charge and a usage charge measured in cents per megajoule.
What a gas tariff includes
Energy Made Easy's bill guidance makes the structure clear. Your gas bill will usually reflect:
- a daily supply charge, also called a fixed or service charge; and
- a usage charge based on how much gas you consume.
Supply charge and usage charge
The supply charge is the fixed cost of keeping the service connected. The usage charge is what you pay for the gas you use.
That means two gas tariffs can look similar on the usage side but still perform differently overall once the fixed charge is included.
How seasonal usage changes the picture
Gas tariff comparisons often change in winter. Homes that use gas heating can see a large jump in total consumption, which gives the usage rate much more influence over the annual bill. Homes that use gas only for cooking or hot water may find that the supply charge matters more.
How to compare gas tariffs
- Check the supply charge.
- Check the cents-per-MJ usage rate.
- Estimate your winter and non-winter usage.
- Review whether the plan is bundled with electricity.
- Compare the likely annual cost, not just the promo headline.
If your household also uses electricity, bring the result back into our main guide on how to compare electricity and gas plans so the final decision reflects the whole household budget.
Where should you go next?
FAQs
What does a gas tariff usually include?
Usually a daily supply charge and a usage charge based on cents per megajoule.
Why is the supply charge important on gas plans?
Because it is a fixed cost that applies even when your gas usage is relatively low.
How do I compare gas rates properly?
Compare the usage rate and supply charge together, then test them against your actual or expected seasonal usage.
Do gas tariffs change in importance during winter?
Yes. Gas-heating households often see winter usage rise sharply, which can make the usage rate much more important.
Should I compare gas tariffs together with electricity?
If both fuels affect your household budget, yes. The best gas tariff should still fit the broader energy picture.