Decode your gas bill! Learn about megajoules (MJ), gas rates in Australia, and tips to save on energy costs with efficient usage and smarter comparisons.
Published on 07/01/2025
By Shweta Mittal
Energy Comparison
It is overwhelming to understand your gas bill and usage; the technical jargon and units are rampant. But at its base, it is really about one fundamental measurement: megajoules (MJ). Knowing how megajoules work not only helps Australian homeowners, gas consumers, and energy analysts better decode their bill but also potentially save money.
This guide demystifies megajoules, describes how they feature in gas billing, and provides actionable tips on how to save money on gas.
A megajoule (MJ) is a unit of energy equal to one million joules. It's the standard measurement used to track how much gas your appliances consume.
For example: A gas heater labeled 25 MJ/h means it uses 25 megajoules per hour. A cooking stove or water heater might also show MJ/h, which would tell you how much energy it uses at any given time.
If it shows kilowatts (kW), it's heat output. The two units are easily interchangeable: 1 kW of heat output is equal to 3.6 MJ of gas use at 100% efficiency.
Your household's total megajoule usage is recorded by the gas meters and forms the basis of your gas bill.
Gas prices in Australia are typically charged per megajoule (MJ) and often follow a block rate system. This system means your gas provider charges different rates depending on how much gas you consume. For example:
Disclaimer: The figures in this table are for illustrative purposes only. Actual prices may vary based on the provider and region.
This tiered system rewards lower usage by charging less for smaller consumption. However, the exact pricing and block structure depend on your gas provider and state regulations.
Gas prices also vary between Australian states due to supply infrastructure, demand, and regulatory differences:
Disclaimer: Gas prices vary by state due to infrastructure, demand, and regulations. Check local providers for accurate rates.
How much gas does the average household use? According to recent surveys, usage can vary widely across regions:
Your household’s specific usage will depend on factors like the size of your home, how many gas appliances you use, and whether your home relies on gas for heating.
Disclaimer: These figures represent average gas consumption and may vary depending on household size, appliance usage, climate, and reliance on gas for heating. Always consider your specific circumstances for more accurate insights.
Cutting down on your gas usage doesn’t mean compromising comfort. Here are some efficient ways to keep your bill under control:
1. Choose Energy-Efficient Gas Appliances
When purchasing gas heaters, stoves, or water heaters, look for models with higher energy efficiency ratings. These appliances use less energy (MJ) to accomplish the same tasks, saving you money in the long run.
2. Fix Drafts and Insulation
For households relying on gas heating, sealing drafts and improving insulation can reduce heat loss. This means your heater won’t need to work as hard (or use as much gas) to keep your home warm.
3. Monitor and Manage Usage
Pay attention to your gas bill and note seasonal spikes. For instance, if you consume significantly more in winter due to heating, consider setting a programmable thermostat to lower temperatures during hours you're asleep or not home.
4. Compare Gas Providers
Different gas retailers offer varying rates and discounts. Use online comparison tools to find gas providers that cater to your usage patterns. Smaller providers often offer competitive rates to attract new customers.
5. Maintain Your Appliances
A poorly maintained gas appliance can consume more energy. Schedule regular servicing to ensure peak performance and avoid potential gas leaks or inefficiencies.
Check Gas and Electricity Bundles
If you’ve been staring at your gas bill, unsure of how everything ties together, you’re not alone. Here’s a breakdown of key sections to pay attention to:
1. Usage Summary
This section lists your total household gas usage in megajoules (MJ) for the billing period. By comparing this with previous bills, you can spot trends and monitor changes in usage over time.
2. Meter Readings
Most bills indicate whether the provider used an actual meter reading or an estimated reading. Estimated readings can sometimes be higher than your real usage, so ensure your bill reflects accurate data.
3. Gas Rates and Charges
This section outlines your block rates (e.g., $0.03 per MJ for the first 80 MJ/day). If your bill is higher than expected, review these rates and see if your usage exceeded the lower-cost tier limits.
4. Supply Charges
These are fixed daily fees your provider charges for maintaining your gas connection. Even if you use no gas during a billing cycle, you’ll still pay this fee.
5. Discounts and Incentives
Check for discounts applied to your account, such as on-time payment discounts or loyalty incentives. If none are listed, ask your provider if you’re eligible.
To save on gas bills, consider switching to a new provider. Many retailers offer introductory discounts for new customers or plans tailored to specific usage patterns.
Here’s how easy it is to compare and switch:
Enter your postcode/suburb into an online comparison tool to see available plans in your area.
Examine the plans, including rates, supply charges, and potential exit fees from your current provider.
Once you’ve found the best deal as per your need, contact the new provider to arrange the switch. They’ll handle the transition, including notifying your old provider.
By switching providers, customers can save money that could go toward other household priorities.
Unlike other Australian states, Western Australian gas providers use “units” instead of megajoules. One unit equals 3.6 MJ, making it simpler to compare gas prices with electricity rates.
Despite this unique measurement system, WA households generally face higher gas prices due to government-regulated pricing and fewer providers.
Understanding megajoules (MJ) and how they relate to your gas bill is the first step toward lower costs and smarter consumption. Every small change – whether it's upgrading appliances, negotiating your rate, or comparing providers – adds up.
Armed with this knowledge, you’re ready to take control of your household’s gas usage and costs. Start by reviewing your latest bill or exploring a comparison tool such as Econnex to check if there’s a better deal out there for your home from Econnex’s range of providers.
