In 2017, Victorian distribution companies introduced a medium-business tariff. This was designed to fill a void in the existing tariff structure for customers who didn’t quite meet the classification for a large business.
The idea was to provide a more suitable pricing structure to medium-businesses, help networks manage their peak demand and upgrade systems to handle peak capacity.
The calculation of demand charges is based on your network tariff and your costs are determined by your own consumption patterns. The ability to decrease consumption during these set hours will provide a cost benefit to you, however large spikes in consumption can also lead to an increase in costs.
To find out if you’re on a demand based tariff – head to your Powershop online account and click on Your Rates under the Usage tab. You’ll see the demand charge listed as a Capacity Charge.
Medium-business demand based tariffs were a mandatory introduction by the distributors but in some cases there’s the ability to opt out should you feel it’s not beneficial based on your consumption patterns.
If you have any questions, please contact our dedicated business team on 1800 728 197.
For more information on when your tariff applies see below.
When do my demand charges apply?
If you’re on a residential tariff:
Summer Demand Charge (1 Dec to 31 Mar): based on monthly maximum demand between 3pm and 9pm local time Mon–Fri.
Non-Summer Demand Charge (1 Apr to 30 Nov): Based on monthly maximum demand occurring between 3pm and 9pm local time Mon–Fri.
Minimum monthly chargeable demand of 1.5 KW for United Energy distribution areas.
If you’re on a business tariff:
Summer Demand Charge (1 Dec to 31 Mar): based on monthly maximum demand between 10am and 6pm local time Mon–Fri (except AusNet which is 3pm–9pm local time Mon–Fri and Jemena which is 10am–8pm local time Mon–Fri).
Non-Summer Demand Charge (1 Apr to 30 Nov): based on monthly maximum demand occurring between 10am and 6pm local time Mon–Fri (except AusNet which is 3pm–9pm local time Mon–Fri and Jemena which is 10 am–8pm local time Mon–Fri).
AusNet Services Business Multi Rate Seasonal:
- Summer Peak: Dec–Mar from Mon to Fri between 2pm–6pm local time
- Summer Shoulder: Dec–Mar from Mon to Fri between 12pm–2pm and 6pm to 8pm local time
- Winter Peak: Jun–Aug from Mon to Fri between 4pm to 8pm local time
- Off Peak: all other times
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