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Summer Demand

At AGL we realise it’s important you understand how your charges are calculated. The example below aims to help illustrate how the Summer Demand charge on your electricity bill is calculated.

What is Summer Demand?

Summer Demand is a new rate introduced by some Electricity Distributors (the companies that own the poles, wires and meters in your area). Summer Demand has been introduced as an incentive for customers to reduce electricity usage during peak system times in summer. The charge applies from 1 November to 31 March, inclusive.

This rate is applicable only to customers who meet certain criteria, for example customers who use more than 20MWh per year, which is equivalent to an annual bill of approximately more than $4,500 per year.*

It is calculated by identifying the highest half hourly usage between 2.00–7.00pm Monday to Friday, for each relevant bill, and multiplying that by two to obtain the hourly demand. The hourly demand is then multiplied by the Summer Demand rate and the number of days on your bill that fall within 1 November to 31 March (inclusive), to obtain the billable amount.

Example of Summer Demand

For a bill period of 1 October to 31 December (92 days), the Summer Demand charge applies 1 November to 31 March (inclusive), so the Summer Demand bill period is 61 days of the 92 days in this example bill. 

 1. If 12 December between 4.00–4.30pm had the highest half hourly usage of 2 kilowatt hours (kWh), this is multiplied by two to obtain the hourly demand (2 X 2 = 4 kilowatts [kW]).

2. The hourly demand (4kW) is multiplied by the Summer Demand rate (4 X 0.4143 = $1.65[GST excl.]), and then by the Summer Demand days in the bill period being 61 days ($1.65 X 61 days = $100.65).

3. The Summer Demand charge for this bill is $100.65 (GST excluded).

your electricity usage sampletable

*Calculation is an approximation based on the average customer who consumes more that 20MWh per year. This amount may vary depending on location, tariff, and consumption profile.

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