Demand Charge

[Lindley]

Hi, 

Can anyone please clarify how demand charge is charge into my usage?  The exact word quoted below

"Demand Charge Non-Summer Demand Weekdays 3 pm - 9 pm.  Charge 12cenrs/kW per day.

Thank you!

[Gerard109]

Lindley,

I'd like to know that too.  Does anyone know?

G

[Giff]

Hi @Lindley  & @Gerard109 

The Demand Charge is actually separate from your usage charge. 

These are the definitiions from the AGL site for a NSW customer:

Residential Demand Tariff: 

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

High-season Demand - From 2 pm to 8 pm on working weekdays during 1 November to 31 March (inclusive) – the ‘summer months’. From 5 pm to 9 pm on working weekdays during 1 June to 31 August (inclusive) – the ‘winter months’.

Low-season Demand - From 2 pm to 8 pm on working weekdays during 1 April to 31 May and 1 September to 31 October (inclusive) – the non-summer and non-winter months.

The highest usage in any 30 minute period during the above Demand times is used to calculate the Demand Charge.

Demand Charge for the month is: (Max kWh in the 30 min) x 2 x Demand Tariff ($0.12)

Hope this helps.

[Gerard109]

Hi,

Thanks for the response.

I understand the concept but it worries me that collectively, we the consumer are being charged too much for it. There is no mention of the impact to the charging algorithm that comes from the fact that my peak period is not the same as my neighbours and hence collectively, the total of demand charges will be higher than the actual cost. A big win for the electricity providers.

Previously, this cost has been included in the normal usage costing. What has changed or is this just a means to extract more from the consumer base through a convoluted, not easy to understand, means? With it's introduction, I would have expected to see at least some reduction in usage rates to compensate. Has this been documented somewhere?

thanks,

Gerard B

[Gerard109]

Hi,

Thanks for the response.

I understand the concept but it worries me that collectively, we the consumer are being charged too much for it. There is no mention of the impact to the charging algorithm that comes from the fact that my peak period is not the same as my neighbours and hence collectively, the total of demand charges will be higher than the actual cost. A big win for the electricity providers.

Previously, this cost has been included in the normal usage costing. What has changed or is this just a means to extract more from the consumer base through a convoluted, not easy to understand, means? With it's introduction, I would have expected to see at least some reduction in usage rates to compensate. Has this been documented somewhere?

thanks,

Gerard Burns

[jackmcd]

I enquired by phone and AGL told me that the demand was charged once each day and was max half hour x 2 x demand charge, ie a daily charge, not a once per month

[dmothlogulea]

Demand Charge: A demand charge is an additional fee imposed by utility companies based on the highest level of electricity demand recorded during a specific period. It is separate from the charge based on the actual energy consumed (kWh). The demand charge aims to account for the strain on the electrical grid caused by peak demand.

Non-Summer: The demand charge mentioned applies during non-summer months. It implies that this particular charge is not in effect during summer months, which may have different pricing or peak periods.

Demand Weekdays: The demand charge applies on weekdays (Monday through Friday). It suggests that weekends might have different pricing or peak demand periods.

3 pm - 9 pm: The demand charge is applicable during the specified time frame, from 3 pm to 9 pm. This indicates that the utility company considers these hours as peak demand periods when electricity usage is typically higher.

Charge: The cost associated with the demand charge during the specified time frame is mentioned as 12 cents per kilowatt-hour (kW) per day. This means that for each kilowatt-hour of the highest demand recorded during the specified period, you would be charged an additional 12 cents.

It's important to note that electricity pricing and demand charge structures can vary depending on the utility company, region, and specific rate plan you are subscribed to. To get accurate and detailed information regarding your specific electricity usage and charges, it's best to consult your utility company directly or refer to your electricity bill, rate plan, or terms and conditions.

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