What is a utility bill?

Fact Checked

You’ve probably come across the term ‘utility bill’ before and scratched your head. So, what is a utility bill and more importantly, why should you care? There are several different types of utility bills you are likely paying for right now, so understanding what these are could make a huge difference to how you budget your home spending in future. In this article, we go through what these costs may be for you and reveal what the average Aussie household pays for each.

What is a utility bill?

A utility bill is a detailed invoice for using services generally associated with households. Utility bills, or utilities as they’re commonly known, are issued to customers who use essential services, such as energy, water and sewage. As an example, a utility could refer to a quarterly electricity bill or monthly water charges.

Utility bills usually represent a wide range of ongoing household expenses, so think of it like ‘overheads’ for a business, which are costs set aside to cover a specific service. In Australia, there are normally more utilities related to owning a home or business, including council rates, water and sewage charges.

Types of utility bills

There are many types of utility bills, but as a general guide, the most common utilities you’ll find in Australia are energy, sewage, water and rates. We’ve gone into further details about each of these utility billing types below.

Keep in mind that, although these may not always be considered essential services, charges from telecommunications companies for internet and phone services can sometimes be considered as a utility bill.

Electricity

Electricity bills are issued by an energy provider for consuming energy and being connected to an electricity grid.

Natural gas

Natural gas bills are sent by a gas supplier for using natural gas and being connected to a gas mains network.

LPG

LPG bills come from a gas retailer for restocking or refilling cylinders of LPG gas at a property.

Council rates

This is a rate levied by a council which covers maintenance and improvements to local services.

Water

A water bill is issued by a utilities company for consuming water at a household or business.

Sewage

Sewage is a separate charge on a water bill to cover maintenance of local sewage and stormwater drains.

Compare cheap electricity prices

Energy bills are one of the biggest utilities for households, so it’s important to compare providers on a regular basis. Given that electricity prices change all the time, it’s always good to know what deals are on offer in your state. Check them out below to start comparing today.

Utility bill examples

To help further your understanding, we’ve provided an example of a utility bill from Alinta Energy, which is an electricity and gas provider operating across New South Wales, Victoria, south-east Queensland, South Australia and Western Australia. This particular utility bill sample is an electricity invoice from Alinta Energy. As you’ll see, it outlines the total payable amount, a due date, plus other relevant details specific to this customer’s service address.

For more information about electricity bills check out our step-by-step guide on how to read your power bill.

Average utility bills in Australia

You might be shocked by how much utility bills vary in price around the country, which is why we’ve done some of the legwork for you. While these are a great reference point to see what the average utility bill looks like, our findings are a general guide only. Other factors that impact utility bills include your location, how much energy or water you use, the size of your home and various other personal circumstances.

What is the average electricity bill?

If there’s one utility that’s almost impossible to escape paying, it’s electricity. Data from a Canstar Blue survey finalised in December 2023 revealed the average electricity bill in Australia differs in price according to each state or territory. Below are the average quarterly electricity bills for households of all sizes reported by our survey respondents:

• Western Australia: $296
• Queensland: $315
• Victoria: $320
• Australian Capital Territory: $321
• New South Wales: $345
• South Australia: $352
• Tasmania: $372

According to our findings, it seems that customers in Western Australia pay less for electricity than most other states and territories whilst Tasmanians pay the most.

What is the average gas bill?

Natural gas is another utility that can quickly bust budgets, particularly if customers don’t compare gas prices regularly. A Canstar Blue survey conducted in December 2023 uncovered that the average gas bill costs much more depending on location. This could be as a result of lifestyle factors or a difference in gas rates. Here’s the average quarterly gas bill according to each state as reported by survey respondents:

• Western Australia: $143
• Queensland: $179
• New South Wales: $192
• Australian Capital Territory: $197
• South Australia: $224
• Victoria: $237

As you can see, there’s a massive difference between what households in Western Australia pay on average compared to those in Victoria.

What is the average water bill?

Water is a resource many of us take for granted until we have to pay for it. This type of utility bill comes in all shapes and sizes due to a range of factors. But as a way of a general guide, we asked Australians how much they pay on average per quarter for their water use. Here are the average water bills in each state as found in our January 2024 survey data:

• South Australia: $200
• Tasmania: $200
• Victoria: $208
• New South Wales: $216
• Western Australia: $233
• Queensland: $235

Our findings revealed that customers in Queensland pay the most for water, while those in South Australia and Tasmania pay much less.

What to do if you can’t pay your utility bills

If you find yourself in a position where you can’t afford to pay your utility bills, the first and most important thing to do is contact your billing provider directly. Whether it be for electricity, gas or water bills, pick up the phone, explain the situation to your relevant provider and ask if there is anything they can do to help.

Providers are required to help customers experiencing hardship or distress and, in most instances, will offer an extension on the due date to help ease the pressure. Others may offer to set out a payment plan with affordable repayments over a set time period.

Depending on the severity of the situation, you may also become eligible for additional support from your provider in the form of its hardship program. These programs can allow access to things such as free financial counselling services, helpful guides and information around how to lower your costs and eligibility criteria for concessions and rebates in your area.

Whether you are struggling with an energy bill or water bill may change the outcome of what’s available to you from the above suggestions. However, as mentioned previously, all providers are required to assist struggling customers, so there should be some utility bill support available to you from your provider.

If you are unhappy with the service or support you receive at any time from your provider and would like further support or investigation into the situation, you can also contact the relevant ombudsman in your state or territory.

See what else may be applicable to you if you cannot afford your energy bill in Canstar Blue’s energy bill payment guide.

How to save on utility bills

So, how can you drive the unavoidable costs of utility bills down? Well contrary to what you may think, saving on utilities doesn’t have to be a challenge. It will, however, require a bit of patience and homework on your behalf, such as comparing utility companies for services like electricity and gas.

For energy, it’s all about getting familiar with your bills and understanding your usage habits. From here, you’ll be able to see which providers offer plans and rates that suit your lifestyle. You may be pleasantly surprised by how many deals are available to you in your area by dedicating just a few minutes of your time.

Unfortunately for council and water utility bills, rates are usually set in stone and you won’t be able to ask for a better price or deal. Still, there are ways to better manage your water costs, like cutting back on showers and using water-efficient appliances.

Image credits: panuwat phimpha/Shutterstock.com, Alinta Energy.

Original Author: Jared Mullane