Energy Management

Looking for tips or advice on energy efficiency around the home? See what others are doing or share your experience!

Looking for tips or advice on energy efficiency around the home? See what others are doing or share your experience!

Demand rates

Switched-on

Hello,

I'm a newbie to this forum.

 

I dont really understand the AGL's "General Usage Demand Opt-In" rates.  The demand charge is in units of c/kW/day for usage between the hours of 1500-2100.  That doesnt appear to be a unit of enrgy consumption, do they mean c/kWDay or c/kWHr ?   Is it an additional charge on top of the normal c/kWHr rate?  Can anyone give me a simple worked example of how this rate works ? 

 

thanks  Jan

24 REPLIES 24

Switched-on

Greetings NeilC,

 

My neighbourhood acquaintance ‘Spydah’ thought I might find this forum of interest. I’ve now read it right through and note that you posed him a couple of challenges in your final post. As it appears that discussion between you two has now ceased, I thought that I might post a response for your interest. Here goes:

 

1. First challenge: I have yet to see any DEMAND price deals that are 7 days a week, I will leave it up to you now to show me a RETAILER'S plan that is not a MON - FRI (less public holidays).

Well here's the answer.  The AGL Solar Savers Demand plan for South Australia 5008 states:

Demand Charge Peak of $0.3505/kW/day.  Peak Period applies 4pm - 9pm weekday and weekends all year.

and the AGL Solar Savers Demand plan for Queensland 4070 (Distributor: Energex) states:

Demand  of $0.2644 per kW of chargeable demand per day

 

Both of the above are 7 days a week and for Queensland 4070, the peak period is not stated. I would be interested to see an example of a DEMAND price deal that is MON - FRI (less public holidays)?   Could you provide one please?

 

The charges above are for AGL. I checked other major suppliers in SA: Origin, Energy Australia, Lumo and none of them even listed Demand type plans. Also, no AGL Demand plans were found for NSW, VIC or WA.   Or am I missing something here?

 

2. Second challenge: I also challenge YOU to show me (and this community) the plan that your family member is now on.

Here it is: https://www.energymadeeasy.gov.au/plan?id=ALI154002MRE&postcode=4070

It commenced on 22/03/21, the day of installation of the Smart meter and no proactive advice of its implementation was received from Alinta. It is now intended to switch to:

https://www.energymadeeasy.gov.au/plan?id=AGL15270MRE&postcode=4070

 

3. You suggested referring to https://www.aer.gov.au/consumers/my-energy-bill/tariff-and-fees-explained However, there's no mention of a Demand tariff so that’s not helpful.

 

4. You suggest: Look at the Energy Made Easy Australian web site to see what plans are available. (This is the site that AGL sends you to after you make a decision from the THREE basic choices that are shown on their site)

 

The EnergyMadeEasy web site lists suppliers based on estimated annual cost, but only non-Demand plans are listed. This makes sense as there's no way that the demand can be costed as it's a future unknowable parameter.

 

To find a Demand plan, you need to enter a retailer's web site (eg agl.com.au) and proceed from there. Having selected a suitable Demand plan, if available, you are then led to the EnergyMadeEasy page for details of that plan. Of course, the page includes the warning: This plan includes demand charges. We are unable to provide an estimate. For AGL (with Energex as the distributor), the Demand charge is common to all THREE basic choices and these give rise to eight AGL Demand plans.

As a matter of interest, I adhere to the following terms: Consumption = Usage = kWh and Demand = (Connected) Load = kW The interchanging of them leads to confusion as ‘Electrons’ noted in his forum post.

 

And I cringe when I read in some posts the use of KW for kW and KWH (and other variants) for kWh.

 

Finally, AGL is both a generator and retailer (also referred to as provider or supplier), and Energex is a distributor.

 

Best regards,

Neil

Powerhouse

@NeilB 

 

Glad to see you on board with your mate!

Why didn't he/she ask you for help before.

 

Yep you have all the answers.

 

Keep up the good work

Switched-on

I need to know the exact period during which the demand Charge is set for the billing period. 

I also need to know if I am already paying for the power I use during that period and if the demand charge is levied on top of that. i.e. Am I paying 15.559 cents for the power PLUS the demand charge at a rate of .2404

for that period.

Thanks.

Powerhouse

@Noid,

These are Pages supported by AGL users.

I suggest you look at your plan.

DEMAND CHARGES ARE VERY EXPENSIVE.

How does a demand charge work?

For an illustration on how demand charges works, we’ll run you through an example based on the below sample from an old energy price fact sheet. Let’s say a household in summer (between 3pm and 9pm) usually runs a fridge, TV and a few lights at the same time. The maximum amount of electricity it draws from the grid at any one moment is 3kW. The demand charge would therefore be 101.904 cents (3kW x 33.968c) for each day of the month. This is on top of standard electricity usage and supply charges.

Now let’s assume that one evening this household runs the TV, lights, fridge, air conditioner, dishwasher and cooktop all at the same time, drawing 7kW of electricity from the grid at once. This now becomes the new peak demand, and a demand charge of 237.776 cents per day (7kW x 33.968c) would be applied every day, again for the entire month.

 

The above is from a website.

 

So the answer is you are paying 15.559 cents for every kWh plus 24.04 * the max kWh * a month for your usage.

 

Imagine on the 1st Oct your peak hourly consumption between 3&9pm was 10kw then your charge would be 10* 0.2404 per Day (extra $2.404) a day.

Yes you are paying the $0.15559 for every kWh you use plus the $2.408 demand charge.

 

Next day you realise your error and reduce your power during that time.

 

You still pay the higher amount till the end of the month.

 

Great deal, stick with it and hope that you don't have a hot day and someone turns on the AC on full.

 

Hope this helps.

 

If you like my response click the LIKE button.

 

Cheers

Neil.

 

 

So lets image the next day you have a max demand of 20kWh,

now you are paying $0.15559 for every kWh you use plus the $4.804 demand charge.

 

 

Switched-on

Noid

I would need to know which state/region you reside in as peak times and days varies.  Also, what is your AGL plan eg Flexible Saver, Solar Saver, Super Saver etc.  Each has a unique set of tariffs. 

NeilB