Auswell Energy provides a comprehensive guide to the new tariff changes and how you can prepare.
From July 1st, 2021, the Transitional Demand tariff will become the default tariff for all residential and small business customers with smart meters and customers who upgrade to a smart meter.
About smart meters:
Every 30 minutes smart meters record your electricity usage (per kWh), sending this information back to your electricity provider, for Queensland this would either be Energex or Ergon Energy. Smart meters, give a more accurate meter reading, meaning you should never receive an estimated power bill again.
What this change means for you:
What this change means for you is that demand tariffs are coming in for when your solar panels are not producing solar, which is at night-time, charging you a higher rate.
A demand tariff is a part of electricity billing, where the daily fee is set by the highest power demand in a particular period. For example, between 4pm and 10pm.
- Peak (4pm – 9pm): This is when electricity is most expensive as it is in peak demand.
- Off-peak (9am – 4pm): During these times demand for power is lower and therefore electricity is cheaper.
- Shoulder (9pm to 9am): This electricity rate is more expensive than Off-peak but cheaper than Peak.
How to prepare for these changes:
One key way to prepare for this change is to invest in solar batteries. The reason batteries are such a great investment is because they maximise your solar self-consumption, reducing how much electricity you need to purchase from the grid.
Batteries are also invaluable when it comes to demand charges. Batteries store the excess solar energy produced during the day, so it is available to use when you need it. This then reduces the amount of solar you need to purchase from the grid. Auswell Energy has a wide range of home batteries and will customise a system to meet your needs.
Another way to prepare is to research your energy provider, making sure you have the best deal possible. Deals are out there, you just have to make sure you are looking for them. Our expert tip is to have as high a feed in tariff as possible, with the lowest charge for power usage available.