We know what you’re thinking. “Energy companies are always trying to confuse me to the point I give up and just pay the bill”. You are not alone.
8,000 businesses in the Ausnet Services distribution area (East of Melbourne and a large part of both Northern and Eastern Victoria) will be assigned to new energy tariffs in 2017.
United Energy customers may see the word “Demand” on their bill for the first time very shortly, whilst Powercor and Jemena have made changes to existing demand in switching to kVA by March this year.
Most business owners don’t have the time to keep up with it all.
All of these changes have one thing in common. While being confusing at first, with a bit of investigating and the right expertise, these tariff changes can actually benefit businesses. There is gold hidden for those willing to find it.
This is because cost-reflective demand charges will help reduce consumption costs because most of your bill is based on the maximum amount of power you require during a particular time of the day. By making some small changes to when power is used, businesses can drastically reduce their overall costs.
kVA demands are even more flexible. Improving your power factor means you can continue operating as normal but require less power.
Around 50% of businesses could be better off with demand tariffs, but to take advantage you may need to “opt in” to these tariffs. Enlist the help of an industry expert who can determine the cost-effectiveness of any changes for you.