I'm a newbie to this forum.
I dont really understand the AGL's "General Usage Demand Opt-In" rates. The demand charge is in units of c/kW/day for usage between the hours of 1500-2100. That doesnt appear to be a unit of enrgy consumption, do they mean c/kWDay or c/kWHr ? Is it an additional charge on top of the normal c/kWHr rate? Can anyone give me a simple worked example of how this rate works ?
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Thank you for getting in touch!
Demand charges are calculated by looking at a customers highest 30 minutes of energy usage during this peak time for the billing period Mon-Fri (excluding public holidays). This amount is then used to calculate the customer's bill and is reset at the beginning of the next billing period. This means that if customers lower or restrict how much power they're using during those peak times, they can potentially save on their final bill.
The formula for calculating this charge is as follows: KW consumption x Days in billing period x Demand charge.
For example, if your highest 30 minutes of usage for a 90-day billing period was 9.6KW with a demand charge of 15c, this'd be calculated as follows: 9.6 x 90 x 15 = $129.60 (excl. GST).
Hopefully this helps!
Thanks Jayden that makes it much clearer.
A followup question: is the demand charge in addition to the normal c/kwhr consumption charge during the demand period or does it completely replace it?
The demand charge is in addition to the usage during these periods, however it's important to keep in mind that you receive a considerably lower kWh rate in exchange for the demand charge.