Red Energy - Demand Tariffs Summer / Temperate / non-summer

I need some help understanding Red Energy's new billing structure. They've gone and added a whole new billing item called Demand Summer / Temperate/ non-summer.

It seems that they show you your peak demand and times that c/kW/Day

Summer = 24c c/kW/Day (ex GST)
Temperate = 14c c/kW/Day (ex GST)
Summer = 24c c/kW/Day (ex GST)

So if your peak demand at any point during a billing cycle was say 7 KW in summer (Microwave,aircon,kettle,dishwasher,dryer all going at once) then that would be 7 kW * .24 c* 91 days = $152.88 extra on the bill

Is that correct?

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Comments

  • where did you get this?
    I am with RedEnergy, but on their Fixed contract, prior to the hikes.

    • Most recent change email they sent a day or two ago?

      The email starts with good news! your solar FIT rate is going up! (from 6 to 7c) and then says oh we upping your other rates by about 75%

      • Maybe because im on a fix contract.

  • Yes, that's correct, but peak demand is calculated based on half hour block so you're unlikely to hit 3.5kwh, unless you're pulling it through your tesla. All the above appliances are unlikely to pull that sustained load for long.
    The key point is avoiding that peak, even if you're consistently pulling 1kw max most day, it only takes a single day to destroy all the hard savings. Not sure if the billing period is 30 or 90 days.

  • Isnt this a result of metering configuration change by the distributor? Someone more knowledgeable may know, but do you have a say in what metering configuration you're on?

    I ask because I was forced to change from peak only (no demand) to peak/offpeak (no demand) when my solar was setup, but was able to switch it back straight away to peak only (no demand), as I knew based on my usage, i'd be worse off with peak/offpeak split rather than just the single, flat rate peak. This is in VIC.

    Does anyone actually know? It feels so murky to me that there are single rate / two rate / three rate / demand profliles (and my assumption that the retailer does not look for your best interests), and I cant seem to get a clear understanding on what users rights are to be able to select what configuration they are on.

    • +1

      In VIC when you add solar to your meter your distributor will automatically move you to TOU (Time of Use) billing. The tariff assigned to your meter is set by your network not your retailer. However, like you did some networks do not lock in TOU tariff and as long as you call your retailer you can change back.
      This is happening all over the country with the smart meter roll out. You will find customers who had an old basic meter (read manually by a meter reader) when they switch to a smart meter their tariff is automatically changing to TOU and in some cases, looking at your Ausgrid!, a demand and season component is added.
      The worst part is some networks will not allow you to switch back, so once the smart meter is in you go from a single flat rate to a TOU and demand and majority of people going on demand have no idea how it works - it’s shocking they are allow to do this to consumers who just use power as normal and pay a bill, now you need to understand max demands and seasonal changes otherwise you cop a hefty penalty come bill time.
      I don’t agree at all with how this has come about, in 10 years since the smart meter roll out started in VIC it was never discussed that residential consumers will be forced to pay charges which are and have always been reserved for commercial companies. Within 5 years all tariffs will be changed by the network and a demand and season component will form part of every one’s bills. Sad but the media spin over the past few years that consumers using aircons in summer and having TVs at the same time is causing the entire energy system to melt down every summer is a complete joke, but that spin has allowed networks to basically do as they please with tariffs.

      • Thank you for this information, so I just had solar installed and I have a cheap flat rate with glo bird but they want to use me to time of use with 5c p/kW with time of use tariff what should I do , do you think I can retain my old bill/pay structure?

        • +1

          If you can keep your flat rate while getting the 5 cents solar buy back, do that and avoid changing to TOU. I’ve been in the energy industry for over 10 years and almost always your better off on a flat rate, unless you can really alter your usage to peak and off peak times. There is a very good reason they are trying to move people to time of use tariffs (peak, off peak and shoulder) because they make more money off this and the consumer does not save. Ask globird if you can stay on flat/single rate and get the same feed in tariff

    • I cant seem to get a clear understanding on what users rights are to be able to select what configuration they are on.

      I don't think there are any rights. You get what you're given. When I last moved retailers (from ReAmped) I was trying to get a normal tarriff, and the plan I found and picked (through Finder) made no mention of it being a demand tarriff, but when I got the documents from AGL it was a demand tarriff (I don't pin the blame here on AGL but on Finder). Figured I'd give it a go and see if it ends up being comparable, as it's a significantly cheaper rate for normal usage.

      With ReAmped, I was on a ("normal") tarrif, flat non-fixed rate of $0.1413 per kWh + $1.0530 per day supply charge.

      With AGL we're on a Demand Tarriff, with a flat non-fixed rate of $0.1336 per kWh + $0.9251 per day supply charge + $0.0758 / kWh demand charge.

      I've just compared a bill for the same period (July 2022 vs July 2021) and it's comparable, although we did use almost 40% more electricity this year. Total bills equate to $0.20 per kWh for ReAmped and $0.19 per kWh with AGL. If you ignore the supply charges, they both equate to $0.16 per kWh. Demand charge on the AGL bill was $12.

    • If you're in United zone then yes they'll automatically put you in You when you apply for solar meter reconfiguration, but legally you can request to go back to single tariff, only have to wait out the 12 month period as you can only change it once per 12 month

  • It also seems Red is dumping 'Time Of Use' TOU type billing as well. They've moved me onto the same rates for Peak /Off-Peak / Shoulder

    In one of my last bills, I had a peak of 7.9 kW

    I think this type of billing is rather unfair as it's not based on actual energy usage. It's based on a single peak which isn't representative of regular use. It's like being fined for speeding by accelerating fast when you haven't even broken the speed limit.

  • Geez, I'm in VIC haven't heard about putting people on these demand type plans!

    https://www.canstarblue.com.au/electricity/demand-tariffs/

    For the most part however, customers will only be put on a demand tariff if they explicitly opt in.

    The peak usage resets each month

    • I didn't opt in for anything like this. I presume they slipped it in when I moved house and installed Solar in Nov.

      • Some more good info here (varies depending on your location distributor):-
        https://support.billhero.com.au/article/41-what-about-demand…

        NSW - Ausgrid
        Since 1 July 2019, demand tariffs have been assigned by default for all new residential and small business connections and for existing customers on flat tariffs who have chosen to upgrade to a smart meter.

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