COST comparison website Mozo has revealed the breakdown of how electricity is charged and explained why people in Dubbo are paying on average $650 or 37 per cent more a year than their counterparts in Sydney for power.
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Prices are set by distributors, which have been approved by the Australian Energy Regulator, and cover the running costs to supply electricity and their profit margin.
A Mozo spokesperson said location determines 50 per cent of the amount of your electricity bill, which goes toward paying for the maintenance, upgrading and operation of the poles and wires.
The cost of generating electricity makes up 20 per cent of your bill, while retail services such as managing your accounts, billing and customer services is 15 per cent, as does the government green scheme, which covers the national carbon price, renewable energy target and other state based schemes.
Looking at the average electricity prices across the central west based on a four person household, Dubbo, along with Cowra, tops the list at $599 per quarter, which equates to $2396 annually.
This is considerably more than people who live from Lithgow to Parramatta who pay $1739 annually, while people in Sydney or Newcastle pay $1744.
If you're in Bathurst, Orange and Mudgee you're looking at $489 per quarter, while Lithgow is lower at $404. While Dubbo residents don't have a choice but to be charged more for their electricity, Mozo Director Kirsty Lamont did give several tips which can help reduce your next bill.
"Use your latest bill to shop around and see how much you could save by switching," she said.
"Check to see that you're not on your provider's 'standing offer' as this generally the least competitive deal available.
"Take advantage of all discounts available to you such as pay on time or direct debit discounts."