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Electricity Demand Pricing

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ajm:
Has anybody had to pay the extra demand price in the residential power bill? Have just done a crash course in WTF-is-this? when looking for a new retailer.

Current retailer asked to install a smart meter two years ago spouting about how much easier it would make reading the meter. We were tired of their over estimations due to farm dogs being out. Sounded like a good idea.

What they didn't tell us was that it meant we were shifted to a new tariff. Hasn't been an issue yet.

In a nutshell, between 4pm and 9pm, electricity will be charged at a premium if you exceed a certain level of consumption. The best part is, if you go over that level by 1 zap, you will have to pay the entire month at the higher demand price. That sounds completely fair. NOT.

Now, nobody can tell me what the level is that triggers the demand pricing. Not the retailer. Not energex. Yet, they can put it on my bill.

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tom60:
AJM,
My understand of demand pricing is the user is always going to pay a higher price for electricity during the "demand pricing" period.  The additional cost is based upon how great the usage was during the demand period.  The user can reduce the cost during the demand pricing period by reducing the peak amount of electricity used during the period. 

Effectively, users on a demand pricing tarrif get rewarded with a lower unit price during the non demand recording period and can also reduce their demand price by reducing their peak demand during the demand period (ie, move their electricity requirement to the non demand period of the day). 

The overall objective is to flatten the demand curve which makes it easier to generate electricity. 

yvesjv:
The best way to avoid this is to go solar + batteries, wind or hydro on your property.
Check the 'preppers' sites... they always upgrading their kits in readiness for the soon to come apocalypse of civilisation.
Quite crazy at times they are but some of their ideas are quite good.

ajm:
Thanks Tom, I understand the concept but not the mechanics of demand pricing. Some articles says that your highest peak of demand within a month sets your demand tariff for every single day within the month. So, all your power is billed at the demand price. Other articles suggest that if the highest peak demand exceeds a certain threshold, you then get charged the demand tariff. Problem I am having is being told what is definitely going to happen. Which method will they use?

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ajm:

--- Quote from: yvesjv on Jul 22, 2022, 12:51:34 PM ---The best way to avoid this is to go solar + batteries, wind or hydro on your property.
Check the 'preppers' sites... they always upgrading their kits in readiness for the soon to come apocalypse of civilisation.
Quite crazy at times they are but some of their ideas are quite good.

--- End quote ---
Collating quotes today actually.

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