idea Retail time-of-day tariffs in AGL Energy Ideas

Retail time-of-day tariffs

gazthewiz — Mon, 28 Oct 2024 07:34:22 GMT

There has been much discussion in the media lately about the push to convert all domestic electricity meters to Smart Meters, accompanied by retailers encouraging customers to go onto "time-of-day" or "demand" tariffs. The thinking behind this move is to set price signals for electricity consumers to change their usage habits as the grid transitions to renewables.

However, there has also been much discussion about the fact that "time-of-day" and "demand" tariffs are much too complex for the average user to comprehend, and will likely penalise those least able to take advantage of potential benefits.

I have a suggestion that might help achieve the objective of reducing demand in peak periods and encouraging demand at times of plentiful supply.

Instead of "time-of-day" tariffs only applying to electricity imported from the grid, how about AGL and other retailers offering "time-of-day" variations to exports as well? This would involve offering less payment for power exported during times of plentiful supply, and higher payment for power exported in peak times.

This would only work for customers with batteries, but isn't it desirable to encourage more customers to install batteries and use them to firm up capacity in peak times??

Re: Retail time-of-day tariffs

Lester — Tue, 29 Oct 2024 05:16:20 GMT

This is already happening, in a variety of ways.

AGL has Peak Energy Rewards to give a rebate to people that can beat a certain low energy use during peak times.

Many say it's too hard to beat . . . https://neighbourhood.agl.com.au/t5/General-Ideas/agl-Peak-Energy-Rewards/idi-p/39097

"time-of-day" tariffs for exports ?"

With a battery, it's called a VPP, not a lot of benefit though from what I can see, better if it suits (and you can work it properly) to go with Amber.

We are seeing the reverse happening with FITs, with some states already having, and some states to get it July 2025, this so called 'sun tax' (it's not really a tax . . . yet), but it's a small penalty off your feed in solar during the hours between 1000-1500 . . . how much will this increase in future years ?

A battery will certainly make all of that less relevant.

Mostly retailers plans are geared to force people with (suitable) solar into a battery too, and plans / vpp type setups aren't really encouraging solar / battery owners to participate to great extent, better they use one's own solar / battery investment wisely to eliminate their own bills totally, or reduce bills to a very negligible amount.

I agree, the near future of renewables, we should be getting people with suitable solar systems into installing a battery, and get those without solar into solar and battery.

Then offer real incentive(s) for them to provide an agreed amount of that battery reserve to the grid at peak times.

Right now none do that in the traditional power retailers, Amber is different, but can work for a lot of people if set up right.

Re: Retail time-of-day tariffs

HLF — Sun, 12 Jan 2025 05:15:48 GMT

Good point but why limit it to batteries. Its about time AGL offered a higher fit in the peak hours of 3pm to 9pm. As there is now a move to reduce the fit to 0 following most of the other states. I am supplying renewable energy to the grid but not going to buy a battery to help stabilise the grid totally at my expense. When the Government gets some serious rebates happening then I will reassess. A loan is of no assistance to me.

Re: Retail time-of-day tariffs

HLF — Sun, 12 Jan 2025 05:21:37 GMT

Peak energy rewards is to reduce loads when the grid cannot supply enough energy. Naming is misleading.

VPP plans only get used for frequency adjustment or high intermittent demand.

But a variable fit could be used most days.

Re: Retail time-of-day tariffs

Lester — Sun, 12 Jan 2025 06:04:46 GMT

Personally, if I end up getting a battery eventually (likely with shifting 'rules'), it will be to make us self sufficient totally here.

If ever FIT goes to nil, and / or the 'sun tax' when it comes makes it prohibitive (in slight cost) to export between 1000 and 1500, I will either use battery software to not export in those times, or get a Catch Control to look after that.

The whole electricity market is complex and confusing already, and seems to be getting worse with all these introduced elements.

Re: Retail time-of-day tariffs

gazthewiz — Sun, 12 Jan 2025 09:52:01 GMT

Couldn't agree more about the complexity getting worse.

If the government wants to get everyone on board, things need to get
much much easier for the general public to understand. I'm a retired
professional electrical engineer, and even I have trouble getting my
head around it all.

I think this all comes down to the fact that customers have to deal with
retailers, and it is in the retailers' interests to have offerings that
are deliberately confusing. Not only that, but it is also in their
interests to keep moving the goalposts.

The government's answer is for customers to shop around, but who has the
time and energy to do that every year, along with all the other big
expenses?

Re: Retail time-of-day tariffs

HLF — Mon, 13 Jan 2025 02:10:01 GMT

Zero fit is not too far away. Several other states have done this, Victoria
is considering an almost Zero fit.

Re: Retail time-of-day tariffs

gazthewiz — Mon, 13 Jan 2025 02:53:01 GMT

I am in the very fortunate position that I still qualify for the
Queensland Government feedin tariff of 44c in addition to the AGL fit. I
haven't had to pay an electricity bill for over 10 years - AGL pays me
instead. As well as that, my meter has not yet been upgraded to a smart
meter. I don't have a battery, but there is currently nil incentive for
me to make any changes to my existing solar installation.

However, I am trying to keep in touch with any policy changes that might
affect me in future, and at the same time preparing for the 44c tariff
to cease in 2028.

I have time on my side, but hopefully everyone's options will be much
better (and much easier to understand) by then.