Demand Tarrif Should be Charged Daily

runbren
Conductor
5 Replies 274196 Views

Hi All,

 

I don't understand why we are being charged the Demand Charge rate for the worst day for the billing period across the entire period.

Doesn't it make more sense to apply that on a daily basis?

For example, if someone turns on the kettle, toaster and then a heater on one of the days of my billing period, I get charged as if I did that everyday.

My demand on the power grid was only applicable on that one day, so it makes sense to do this on a daily basis.

52 REPLIES 52
NeilC
Powerhouse
0 Replies 11 Views

@Pooks 

 

Why are you on a demand tariff, they are meant for businesses.

AGL is cheating you.

Read the whole post

Cheers Neil


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Lester
Powerhouse
1 Reply 5 Views

I'm not sure if some of the eastern states residential are only offered plans with demand charges, I have read that on some of the energy groups online, and I know AGL has stated on numerous threads they no longer apply demand tariff to new residential consumers.

Why can't they just take if off those residential that are still on it ?

If you can change, do so, but there might be higher tariffs for non demand plans, maybe higher daily supply charge too, but you need to do you sums based on YOUR usage patterns, adapt if possible to suit the best plan for YOUR home usage.

 

@Pooks your post "That means if I only use lights every day then use the oven etc on one day only, every day I pay to use the oven that I'm actually only using once? Please clarify because I am most dissatisfied if that's correct."

 

Remember, demand ONLY applies for the demand periods (certain times of day), and those are usually in peak times like mid - late afternoon and into evenings.

If you use high power items outside that time, it doesn’t apply . . . eg your oven analogy, if you cook the meal to be finished before the start of a demand period, then all good.

 

I am pretty sure that there are seasonal demand changes too, and some only apply to part of the year that peak power demand is an issue.

A quick google > what seasons are residential electricity demand charges applied < came up these generally now being applied only for winter and summer.

Summer and Winter Focus

 

  • Summer Peak: Usually runs from November to March (or December to March depending on the distributor), driven by high air conditioning usage.
  • Winter Peak: Usually runs from June to August, driven by heating needs.
  • Off-Season Months: Many networks (such as Ausgrid) have eliminated low-season demand charges for spring and autumn (April, May, September, October) because overall network stress is lower.

Summer Time Windows: Usually mid-to-late afternoon and evening (e.g., 2:00 PM to 8:00 PM, 3:00 PM to 9:00 PM, or 4:00 PM to 9:00 PM) on weekdays or all days depending on the tariff.

 

Winter Time Windows: Often shifted later in the evening (e.g., 5:00 PM to 9:00 PM) or priced at a lower rate tier compared to summer.

Johnmollenhauer
Conductor
0 Replies 4 Views
What are the tariffs that you are being charged and how much power are you using.
It is impossible to agree or disagree with you with out having all the facts.

Agreeing to Demand Tariff regime, one has to set up a strict timeframe for when power can be used and when not, bearing in mind that one slip up in the timing can be costly because of the month issue penalty. Remember nothing in this life is for free.
I personally do not use the Demand Tariff method for paying for my power usage.
Some time back I completed a comparison and evaluation of a number of the supply contracts offered and went with the single rate tariff for each of -
Tariff 11 General
Tariff 33 Controlled load
Tariff 31 Hot Water (not used anymore)

Regards,
John Mollenhauer