How is the Demand Tariff determined?

[Giff]

I am trying to understand how the "Demand Tariff" is determined.

AGL Description: Demand Charges are based on the load you place on the electricity network. It is measured over 30-minute intervals during your demand time period. The highest measure for the billing month is used to calculate your Demand charge for the entire month.

The unit for charging is c/kW/day.

As this is kW and not kWh, I presume this is the peak "instantaneous" kW consumption during the any 30-minute interval during the demand time period. [it would seem that the 30-minute interval is redundant]

[Giff]

Hi Matt

It's not easy to track down the actual parameters, but below is what I've found. Note: the tariff refers to working days, so you need to take public holidays into account) as well as different time periods for the Hi (Summer), Hi (Winter) and Low seasons.

Understanding Tariffs

(from agl.com.au/rates-contracts/electricity-tariffs)

Demand Charges are based on the load you place on the electricity network. It is measured over 30-minute intervals during your demand time period. The highest measure for the billing month is used to calculate your Demand charge for the entire month. Demand charges may also change by season.

Demand charges

(from energymadeeasy.gov.au/plan?id=AGL239344MRE&postcode=2113)

High-Season Demand - Summer

From 2pm to 8pm on working weekdays during 1 November to 31 March (inclusive)

High-Season Demand - Winter

From 5pm to 9pm on working weekdays during 1 June to 31 August (inclusive)

Low Season Demand

From 2pm to 8pm on working weekdays during 1 April to 31 May and 1 September to 31 October (inclusive)

Cheers

       Giff

[mcrib91]

a smart meter was just installed at my home approx 3 months (not at my request) and i was subsequently informed my tariff would be changed. having read the canstar article, i was quite concerned at the time. i have not yet received my first post-smart-meter bill, however having entered all my smart meter data to date into a spreadsheet, i expect my bill will be slightly lower than before. My (high season) demand charge for the quarter will come to approx $150. As easily as you can **bleep** yourself over with the demand charge (or be screwed over), you can also be smart with usage: during peak, start your oven at 15 or 45 past the hour, same if you want just a 30min blast of the A/C - start at 15 or 45, minimise simultaneous usage of high wattage appliances. you can also have real time usage displays fitted to your smart meter so you can see what's happening now, rather than use the 2 day old data provided by the distributor/retailer. so even though my peak/shoulder/offpeak rates are the same, i am mindful of the demand charge and adjust my usage to keep it at a minimum

[NeilC]

@Giff @mcrib91 

Hi,

AGL is requesting to Suppliers that your meter be changed to 5 min Intervals.

I get my usage download file from my Supplier (SA Power Networks) in 5m intervals. AGL gets the same data but the download file in my account is in 30min intervals.

But you will be charged at the highest 5m interval in your demand charge.

Unless you are happy with this I would suggest that you look at different plans that may save you money.

[Loretta]

From what I can see from my bill it is just an extra charge to increase the profits of AGL.

I have a solar system and Tesla battery and my last bill I imported 257.45 kwh (90 days) from AGL.

It is not about the cost but the principle on how AGL is using a concept of "demand placed on the system' to get an increase in the tariff rate so politicians can grand stand that they have put a cap on the tarrifs, or $275 saving. 

Yes the politicians have capped oil and gas prices.

But yes the way around this is the 'demand placed on the system'

My rate is $0.1747 so a cost of $44.97. But my AGL Demand fee was $44.60.

On a total basis the cost is  $89.59 divided by 257.45 KwH (90 day use) or $0.348 per KwH.

So my standard tarrif of $0.1747 doubled (close to).

Makes a mockery out of the Australian Energy Market Commission.

As an aside I am paid $0.05 for the solar exported, whole rate.

No wonder AGL can pay such big bonuses.

So in answer to your question, it is just a con.

[NeilC]

@Loretta 

Demand charge is something that was added to commercial users to try and decrease there usage during peak hours.

AGL and others have added this to their billing as a way to further increase their profits.

You talk about a 17c per kW (kWh for the purists).

In SA the charge is 30.5c per kW  and 35c for the demand kW.

Gee if you lived here using your calculations you would be paying 70c per  kWh.

So you Eastern state people complain about Electricity prices and us SA people pay approximately twice your rates.

What I am amazed about is that no-one has picked up that at 5c per kWh AGL (and all retailers) are charging users that consume the solar you generate, up to 50c per kWh.

AGL and Origin (as Generators) are triple dipping, profit from generating, profit from retailing and then profiting from on-selling to their own clients from excess solar generating.

Any way I digress, do you realise under demand charges, if you go away you still have to pay all fees and charges, in your case, supply and demand charges.

There is a rider in your contract that states a minimum of 1 kwh....

Now if it was a fair, a demand charge minimum should be say 8 kWh per day before the demand would be payable.

AGL has also increased their meter readings from once every 30 mins to once every 5 mins without informing anyone.

I have stated this before but I will take the time to explain this to you.

At 30 min intervals your highest consumption (in kW) for a half hour period (during the demand time) is then multiplied by TWO to give your DEMAND RATE for the day.

Your highest demand rate (for your billing period) is then multiplied by your billing days to give your demand cost.

Now lets say that your 30 min demand rate was 1.3 kW multiply that by 2 will give 2.6 kWh then multiply by 90 days to give 234 kWh at your demand rate.

Now in 5 min intervals that works out to be .217 kW (or .217 * 6 =1.302) pretty close, but lets say in the period (5min intervals) you went to the stupid amount of .25 kW not much but this now means you are going to have to pay .25* 12 or

3 kWh demand rate.

Now multiply this by 90  you will now be paying 270 kWh at your demand rate.

We are not big users and our average is about 4.3 kWh a day, but I have seen our demand rate (which we don't use) go as high as 3 kWh in a 30min period. If we were on demand that would equate to  6*90 or 540 kWh.

You can change plans, look at the facts and solve your issue.

[Palmplex]

Thanks for your info. I'm currently on a fixed Red Energy tariff . They
defaulted me initially on to a 90 days billing cycle , so I quickly changed
it to monthly.

Why ?

Well, because of the demand charges.

My consumption is very "lumpy". Our AC is the biggest consumer. Some weeks
it's used, other weeks it's not at all.

If we had a 90 day billing cycle , it means if I had one single heavy usage
day ( say we had AC and the oven on), we would be penalised for 90 days of
demand charges.

Whereas for monthly billing we only get penalised for a month. I'd actually
prefer weekly billing !

This method doesn't benefit you if you're peak demand is exactly the same
every day but for me it works really well, as most times we don't have AC
on.