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Network Tariff Reform - Demand Charges

New demand charges and what they will mean for your business from 1 January 2017.

Victorian electricity distributors are introducing new demand charges for certain business customers as part of pricing reforms within the National Electricity Market (NEM).

If a new demand charge is assigned to you by your distributor, the demand charge will be included as a separate line item on your Momentum Energy bill, separate from your electricity usage and other existing charges.

What are Demand Charges?

These charges are an initiative to encourage businesses to use electricity more efficiently during high demand periods - for example, during the busiest commercial hours and summer months when air conditioners are most widely used.

Who will be affected?

Whether a new demand charge will apply to you from 1 January 2017 depends on your distributor (see the list below) and your electricity usage.To check who your distributor is, please refer to the top right corner on the front page of your bill.

United Energy:

Starting 1 January 2017, a demand charge will apply to customers in the United Energy distribution area who use in excess of 40 MWh of electricity per year.

Read more on United Energy's website.

Jemena:

We are currently waiting on further information from Jemena and will update impacted customers within the Jemena network shortly.

Citipower and Powercor:

Citipower and Powercor will be introducing a new demand charge structure for certain business customers, but will not be implementing these new demand charges until 2018.

From 1 January 2017 customers in this category will see a separate line item for demand charges on their bill at a $0 cost which means it will not change the amount of the bill.

The monthly maximum half hourly demand will also be displayed on the bill - from 2018 this will be used to calculate an additional demand charge.

We encourage customers to monitor their monthly usage to better prepare for these new demand charges in 2018.

Ausnet:

Ausnet have deferred the introduction of new demand charges for 12 months.

How will demand charges be calculated?

Only United Energy customers are affected at this stage. This page will be updated as more information becomes available.

United Energy customers:

United Energy will advise us of your highest 30-minute period of electricity usage recorded between 10am and 6pm on business days. This figure is then used to calculate your demand charges.

They are calculated as:

Maximum monthly half-hourly demand (in kW) x demand charge rate (in $/kW) = $ demand charges.

Once calculated, demand charges are then displayed as a separate line item on the invoice.

Your demand charge rate will vary depending on the season. Summer Demand Charges are applicable from 1 December to 31 March and other Demand Charges are applicable from 1 April to 30 November.

What options are available?

Momentum is committed to helping our customers manage their energy costs and some customers may experience some variability on their energy bills due to this change. We are developing a new product which will be available in early 2017 and we will contact affected customers to provide more information on how this may help you.

How can I manage my energy consumption?

For information on how businesses can reduce their energy costs, download the Clean Energy Council's Guide to Improving Energy Use in Your Business.

Who can I speak to if I have more questions?

Call our Australian-based Customer Care Team on 1300 662 778 on weekdays between 8am and 6pm (AEST), or you can email info@momentum.com.au.

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