Retail time-of-day tariffs

gazthewiz
1 Reply 126 Views

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??

1 Comment
Lester
Powerhouse

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.