Normalised Demand To Be Explained

[FrankJ]

How is Normalised Demand calculated?  For example:

• Is Normalised Demand the instantaneous total to the property at any time, including both General and T33 Hot Water use?
• How does normalisation work?

[Lester]

Because AGL apparently doesn't offer or impose demand tariffs on residential any longer, there isn't much easily found on their website.

If already on demand then you can stay on this, or you might be able to get off it.

I don't think it would include HWS controlled load, just peak general usage between x and x depending on your DNSP.

Google AI response to the question > AGL normalised demand . . .

"Normalised Demand" on an AGL bill refers to

a calculation method used for demand tariffs, where your peak energy load is adjusted (normalised) to reflect a daily rate over a specific billing period. 

Instead of charging you based on a single moment of high usage, AGL calculates this charge using your highest 30-minute interval of energy consumption during designated "demand" hours (typically in the late afternoon/evening). 

Key Components of Normalised Demand

• The "Peak" Measurement: AGL identifies the single highest 30-minute block of usage (measured in kW) during your demand window for the entire month.
• The Multiplier: Because this is a 30-minute measurement, it is multiplied by 2 to convert it into an hourly load figure (kW).
• Daily Normalisation: The resulting figure is then "normalised" across the number of days in your billing cycle. This allows the retailer to apply a daily charge (c/kW/day) rather than a one-off lump sum.
• Timing: This charge is often calculated based on the previous month's peak and applied to the subsequent billing period. 

Why is it used?

• Network Load Management: It is designed to encourage customers to spread their energy usage throughout the day rather than using multiple heavy appliances (like a dryer, oven, and air conditioner) simultaneously during peak times.
• Cost Distribution: Distributors use these charges to cover the costs of maintaining a network capable of handling those extreme "spikes" in demand. 

If you find this tariff structure confusing or expensive, you can often opt out by contacting AGL and requesting a switch back to a standard "Time of Use" or "Single Rate" plan. 

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[koena57jim]

So, normalised demand is really just a way to think about the way in which energy or water is being used in that space, without the influence of unusual events, like weather. It’s really just the normal, or expected, demand at any given time. And that means you can compare one day to another, one week to another, one space to another, on a completely equal footing. For example, normalised demand for hot water usage would be all hot water usage—both general usage and special usage like T33 hot water—combined and then normalised to remove the influence of unusual events, like a big party, or unusually cold weather. The actual process of normalisation is really just looking at what’s going on and then adjusting the raw numbers to reflect what would be normal, typical usage.

[Lester]

@koena57jim not at all . . . demand tariff is a punishment for high usage during a paricular high demand 30 minute interval, within a billing period.

Even once.

Eg. say you're on monthly billing, and you are very careful to keep usage as low as you can during the demand window set by your DNSP (the supplier, not the retailer, AGL is this case).

Demand widow can vary in length of time and time of day I believe.

Say you can keep every 30 minute interval within a 3 hour demand block to a maximum of 300w for a period, double that is 600w for the hourly charge . . . EVERY 30 minute interval for that 3 hours will be charged at the demand rate for every day of your billing period, so for example 3 hours x 30 days x 600w (0.6kwh) is what you'd be charged for demand for that month at whatever rate it is for your plan.

But one day, someone turns on a kettle, oven, microwave, or any other high usage items at the same time, and for half an hour you use say a 1kwh instead . . . you'd then have a demand charge for the month of 3hrs x 30 days x 1kwh, or 66.66666% higher than a normal month you might usually have.

We don't have demand charges in SA, so I'm not sure what the typical demand rate is . . . AI says between 10c - 15c per kwh for is a usual demand charge, so the normal month above would be 54kwh x demand rate, that would be between $5.40 (@ 10c) or $8.10 (@ 15c) EXTRA on your bill for the month . . .

For the month someone accidentally used 1 kwh for that 30 minute period, that would be a demand of $9.00 (@ 10c) or $13.50 (@ 15c).

This is on top of your normal tariff for the same power, esentially you pay twice for the same power !
Note, AI also says the most common demand period is 1500 - 2100 for example, so not 3 hours as my example above, but 6 hours, so double the above figures . . . you'd have to check your own plan if on demand tariff.
Power pricing can be complex, thankfully it seems residential demand tariffs are falling out of fashion, perhaps becasue they appear very unfair on consumers.

* Normalised demand, found these little notations in an AI response, this one working on a daily demand period or 1600 - 2100, 5 hours a day . . .

Example of Demand Charging

If your highest 30-minute usage during the 4 PM–9 PM window in January was 10kW, and the demand rate is $4/kW per month, you would pay a $40 demand charge on top of your daily supply and usage charges. 

Why "Normalised" is Used

• "Normalised for 31 days": As seen on some bills, this phrase indicates that the peak charge calculated is adjusted to account for the varying number of days in a billing period, making sure the rate is fair.
• Cost-Reflective: It encourages consumers to move high-power activities (running multiple air conditioners, dishwashers, and pool pumps simultaneously) to off-peak times to avoid the high cost of a single "spike".

[FrankJ]

Many thanks to those who have replied.

But, as I have conflicting comments, I was hoping someone on behalf of AGL could perhaps confirm "Does normalised demand include BOTH standard tariff and T33 HWS simultaneous demand"?

[ChrisE_AGL · Accepted solution]

Hi @FrankJ 

I'm sorry for the delay in responding to this thread. I wanted to make sure I was bringing the most accurate information. 

Demand Tariff does not include both the standard tariff and control load tariff (T33), The control load is it's own tariff and demand is based on your standard usage. 

As mentioned by Lester, you are able to contact us and we will be able to take a look at what electricity tariff will work best for you. 

Thanks, Chris

[FrankJ]

Great, thanks Chris.