Electricity Shoulder prices

[PEng1]

Why are the new off peak prices 40% higher than the shoulder prices. It should be the other way around. My latest electricity bill for a quarter , is $23 more than it should be. AGL has approximately 4.5 Million customers. This could be costing Australians $500 Million to $1.5 Billion  a year.  This is a serious, serious error, or are AGL farming unsuspecting Customers. 

[Lester]

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Hi @PEng1 

I'm just an AGL customer too, but know that all shoulder Australia wide is pretty much less than off peak now, due to solar soak excess energy from solar between 1000 and 1500.

In reality, off peak is still a middle ground for those wee hours of the morning to keep things like fridges ticking over, but it's really becoming less important now.

What are you running in off peak still ?

A HWS ?

If so, you might have to get that onto your shoulder times to take advantage of the lower pricing.

You might be able to do this in metering, after all it is just a timing thing . . . if on CL (controlled load) you might need some electrician type work.

I had my sparky put my HWS onto normal circuit a while ago, and install a simple analogue timer to my HWS, so I can set it for solar hours (free) when fine, or like now in winter another cheap time for a top off.

My cheap time is EV rate between 0000 and 0600, but usually on most plans the cehpest tariff will be shoulder, usually 1000 - 1500. 

[PEng1]

Hi Lester, 

Very interesting, what you are saying is not in accordance with what Energy Australia, google searches, and everybody old and young I have spoken to, and even the AGL chat line says.  They all say peak most expensive, off peak cheapest , shoulder in between.

If what you are saying is correct , AGL is carrying out gross misrepresentation.

I and a lot of people use off peak for high energy use activities such as nightly pool pump, dishwasher, clothes dryer, oven self cleaning .  

Then there is the Hot Water heating issue.  This has always been off peak as it is the cheapest. AGL should be making it abundantly that people are being overcharged , approximately 50% for , for using off-peak hot water 

I hope AGL can clarify and make this very clear to all its customers.

A lot of customers are carrying out activities at off peak thinking that they are doing the cheapest and most environmentally friendly thing.

AGL. Please comment 

I will be approaching news media, local members and Climate Change Council to get their opinions

This is a major cost of living issue.

Does AGL even look at these chats, if not, it is a complete waste of time, and a source of misinformation.

AGL   PICK YOUR ACT UP 

[Lester]

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@PEng1 it's quite possible different DNSPs in the various states and regions have very different charging methods, and timings could have as much variation as supply charges and tariffs between states.

It used to be that there was peak obviously dearest, then shoulder, then off peak.

Here in SA renewables are very high in solar soak, so shoulder is now much less.

My new rates from July 1 and timings for the various tariffs . . .

Note, I don't really have an off peak any longer, with the EV rate overriding all of that tariff period.

Likewise, CL (controlled load) doesn't apply to me now either, as I put that onto the normal circuit with a timer, and just the HW either free from solar, or at the 8c rate.

You'll probably see too that our peak tariff is for 13 hours a day !!

The early morning pre work type 4 hours, then the really long 1500 - midnight period that is very bad for bill with people using perhaps most of their power during the week with late pm / early evening usage.

AGL do come by here quite often, probably every few days at most between rep visits.

[Raj_AU]

Hi All 

It will be great to obtain some clarity around this :

AGL Rates as follows (from Smart Saver Plan) 

General Usage c/kWh 27.621

Demand price c/KW/day 18.546

(Peak demand applies 4pm - 9pm weekdays and weekends all year)

So its cheaper to use the Electricity during peak Demand?

[Lester]

No, it's certainly not cheaper for most consumers, unless you can consume a very low amount during peak demand times . . . consistantly.
It punishes you if you muck up once in a certain time of use period, applying the higher usage for that 30 minute period to ALL the demand peiod for the whole billing period.

You want to avoid power use in demand times, and even swap to a simpler single tariff or TOU plan of you have a choice.

From AI, and a few links below to help you find out more . . .

AI Overview

A peak demand charge is applied to a regular electricity tariff

as an additional, separate line item on your bill, calculated based on the highest 30-minute electricity consumption spike during specific "peak" times. This charge is usually applied in addition to your standard daily supply charge and total energy usage charge (kWh). 

Here is a detailed breakdown of how it works:

1. Calculation Mechanism

• Measurement: A smart meter records your electricity usage in 30-minute intervals (or 15-minute, depending on the network).
• Peak Window: The highest 30-minute usage, measured in kilowatts (kW), within a specific "demand window" (e.g., 3pm–9pm on weekdays) determines the charge.
• Billing Application: This peak value (kW) is multiplied by a set dollar rate per month.
• Reset: The peak demand charge usually resets monthly, meaning a single, high-usage event (e.g., running AC, oven, and washing machine at once) can increase your demand charges for the entire billing period. 

2. When Demand Charges Apply

• Smart Meters Required: Demand charges are generally only applicable to homes with a smart meter.
• Seasonal Variations: Demand charges may differ by season, often higher in summer (high AC usage) or winter.
• Default or Opt-in: In some areas (e.g., Ausgrid NSW), demand tariffs are applied by default to new, upgraded, or re-metered connections. 

3. Impact on Regular Tariff Structure

• Lower Usage Charges: In many cases, plans with demand charges offer lower per-kWh usage rates (c/kWh) than standard flat-rate plans to compensate for the additional fee.
• Penalty for Spikes: If you have high, intermittent, or concentrated usage, your bill could be significantly higher than a standard plan.
• Benefit for Consistency: If you can spread out your appliance usage, the lower energy rates on a demand tariff can lead to savings. 

4. Summary Table of Charges

Charge Type  Basis

Supply Charge	Fixed daily rate (regardless of use)
Usage Charge	Total energy consumed (kWh)
Demand Charge	Highest 30-min power spike (kW) in peak window

5. Strategies to Lower Demand Charges

• Stagger Appliance Use: Avoid running the dishwasher, washing machine, dryer, and air conditioning simultaneously.
• Shift Usage: Move usage to early morning or late evening (outside of the 3pm–9pm peak window).
• Use Solar: Use solar energy or battery storage to cover peak demands. 

Check out Ausgrid overview, they are one ofthe largest DNSPs in NSW demographics wise.

https://www.ausgrid.com.au/Your-Energy-Use/Understanding-tariffs/An-introduction-to-demand-pricing

AGL has a small mention of Demand charges here . . .

https://www.agl.com.au/help-support/billing-payments/electricity-tariffs 

Interestingly, it says there "AGL no longer offers Demand to homes not already using a Demand tariff."