Demand Tariffs are currently a hot topic in NSW and Queensland so here’s some info. If you’re located elsewhere, the below won’t apply to your energy costs with us.

What are demand tariffs? 
These tariffs are a special kind of electricity pricing, calculated based on the highest amount of electricity you use during any 30-minute period within a month. This means a short period of high usage could influence your entire month's bill.

Why are demand tariffs being introduced? 
The Australian Energy Regulators are rolling these out to some homes and businesses equipped with smart meters in NSW and Queensland. The goal? To nudge everyone towards using less power during peak times, easing the strain on our grid. This will impact all electricity retailers.

How is demand calculated? 

Let’s break it down:

1. Peak Demand:  Demand charge is based on the highest power level you recorded during any 30-minute period within the month. For example, let's assume the peak was 5 kW.

2. Hourly Rate: Since the peak demand is over a half-hour period, we double it to reflect an hourly rate. So 5 kW for 30 minutes becomes 10 kW for one hour.

3. Monthly Charge: Your monthly charge is then calculated by multiplying this adjusted hourly demand (10 kW) by the number of days in the month and your demand rate.

By understanding when and how you use your appliances, you can manage your electricity demand more efficiently and potentially lower your costs.

Can I opt out of demand tariffs? 
As demand tariffs are becoming more common, opting out may not always be possible. But don't worry! We can contact your network to explore alternative tariffs that might be better suited for you.

Tips to Manage Your Costs With a Demand Tariff:

  • Stagger Your Usage: Try not to run high-energy appliances like washing machines, dryers, and ovens at the same time.
  • Invest in Efficiency: Choose energy-efficient appliances—they save power and reduce peak demand.
  • Smart Timing: If you're on a time-of-use tariff, use major appliances during off-peak hours to cut costs.
  • Monitor your usage: Keep an eye on your electricity usage via our online portal at portal.energylocals.com.au. It’s a great tool to monitor daily trends and manage your usage effectively.
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