United Energy's New Network Tariffs

01 Oct 2001Archived News Climate Change Matters

Network Use of System tariffs represent approximately 35-50% of your total electricity costs. As the national electricity market has matured, distribution companies have introduced more complex and cost-reflective tariff structures.


In January this year, United Energy (UE) released network use of system charges that address the problem of high summer peak demand. With summer approaching, this has become increasingly important for customers in the UE network area.

UE developed the new tariff structure in accordance with the requirements of the Office of the Regulator General.

UE has restructured their "time of use" tariffs to include the following six tariff components:

Standing charge Fixed annual charge.

Off-Peak Energy

A charge in c/kWh for all energy used between 7pm and 7am working weekdays and all weekends. This is approximately 1,000 hours per year of additional off-peak when compared to traditional off-peak times (which are still applicable for some tariffs).

Non-summer peak energy charge

A charge in c/kWh for all energy used during the peak periods between 1 April and 31 October.

Summer peak energy charge

A charge in c/kWh for all energy used during the peak periods between 1 November and 31 March.

Rolling peak demand

A charge in $/kVA based on the highest half-hourly kVA recorded during peak periods over the previous twelve months.

Summer demand incentive charge

A charge in $/kW or $/kVA based on the monthly maximum demand recorded between 3pm and 6pm on working weekdays over the summer period. This is charged in addition to the rolling peak demand charge.

For some users, this may represent an opportunity to reduce costs if they have the ability to reduce demand over summer.

In addition to introducing new seasonal charges that provide an incentive to cut consumption over summer, UE has also introduced a new 'LVkWToU' ('interval' meter) tariff for medium and small customers, as well as 'interruptible' tariffs for large customers.

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