demand charges

Maximum Demand = Energy consumption over ½ hr period/ Time (1/2 hr). The Rolling Peak Demand Charge is based on the highest power (kVA at the highest kW) delivered during Peak periods (defined as 7am to 7pm Local Time weekdays excluding public holidays) over 12 months to the end of the billing period.

TOU tariff customers have their maximum demand measured in kW

LVkVATOU and HVkVATOU tariff customers have their maximum demand measured in kVA. kVA is measured at the highest kW for the period.

For further explanation of the tariffs please refer to Assigning Network Tariffs.

1. Rolling Peak Demand Charge:

The following customer groups are charged for a Rolling 12 month Peak Demand component. The minimum chargeable demand for each level is:

LVkVATOU 150 kVA

HVkVATOU 1150 KVA

Increase in Maximum Rolling Peak Demand:

If an increase in maximum demand has not been applied for and the maximum demand in a billing period exceeds the chargeable demand, then a new chargeable demand is established equal to the recent highest maximum demand. If the capacity of the distribution system at peak loading can't accommodate the new chargeable demand, the customer will be advised and will need to formally apply for the increased capacity.

If a customer intends to significantly increase their demand, eg. new plant and equipment, they must make a written request using the Demand Reset Form. The increased level will apply from the requested date and is subject to any required work being completed by United Energy for which a charge may be made. This process is to ensure that the UED network connection assets are of sufficient size and that the Distribution system's integrity is not affected by the new Maximum Demand.

A temporary increase in maximum demand can usually be accommodated to cover specific short-term needs. This requires one month's written notice by the customer and prior agreement from United Energy.

Reduction in Maximum Rolling Peak Demand:

Eg. a reduction in demand which is charged on a customer's bill.

A customer can request a reduction in the maximum demand they get charged for if they are not currently signed onto a Supply Contract with a fixed Rolling Peak Minimum Demand charge.

In the past, demand was calculated on an on-going basis ie. as demand increased, so did the maximum demand charged. Even if that customer dropped the level of demand after the highest period, they were still charged for the highest level prior to the drop, unless demand dropped for at least 12 months and the customer made an application for a reduction.

Nowadays, United Energy has devised a fairer system where the base demand charge is calculated over a rolling 12-month period for Peak times only. From one month to the next, demand is re-calculated on the previous 12-month Peak period to that particular month. Therefore, an abnormal month will be discarded out of the calculation after a 12-month period.

However, if a particular customer has changed their electricity usage over a shorter term (eg. 3 - 6 months), then they are eligible (on their request) to accelerate their reduction in demand before the 12 month period is up.

If a customer wants to reduce their chargeable demand, they must complete a "Demand Reset Form". This should be faxed or emailed to: UED Billing - 03 9256 5590

The form allows for input of the reason for the demand reset being requested. If the reset is being requested due to Power Factor Correction being installed, the demand will be monitored/trialed for 3 months from the time of installation, and where a reduction is substantiated, the chargeable demand to the customer will be altered after the 3-month "trial" period

If the reset is being requested because of an unusual event that has caused a peak during one month that is outside the normal operating thresholds for the business, this event will be investigated. If it is substantiated then a reset may be approved.

2. Summer Demand Incentive Charge (SDIC)

LVkVATOU and HVkVATOU customers are charged a kVA based Summer Demand Incentive Charge.

TOU customers are charged a kW based Summer Demand Incentive Charge.

This charge is applied to every summer day in a billing period, and therefore gives an incentive to reduce demand during peak system times in summer.

For ease of explanation, the means of SDIC charge calculation is split into:

Periods when maximum demand may be measured for calculating an SDIC quantity.
Calculation of the SDIC quantity to be applied to the billing calculations.
How the SDIC quantity is applied in the billing period to produce a final SDIC charge.

Periods when maximum demand may be measured for calculating an SDIC quantity:- SDIC is only monitored over:

Summer months; where summer is defined as 1 November to 31 March.
Weekdays; excluding public holidays.
Half hours between 3pm and 6pm local time for LVkVATOU and HVkVATOU tariffs, and half hours between 2pm and 7pm local time for the TOU tariff.

The SDIC quantity to be applied to the billing calculation is:

The highest half hour of consumption in the monitored periods during each billing period is identified
For kVA based tariffs, power is defined as the actual KVAh at time of highest kWh consumption in a ½ hour period.
For kW based tariffs, power is defined as the highest kWh consumption in a ½ hour period.
The power measurement is then converted into demand – as this is a demand charge (ie 2kWh of power delivered in a ½ hour period is a demand of 4 kW).

Application of SDIC quantity to the billing period:

The billing period is the period covered by the bill which is generally a period between; scheduled meter reads, or special meter reads.
The SDIC charge for the billing period is the product of; the SDIC quantity multiplied by the SDIC daily unit rate (from UED's NUOS tariff sheet) multiplied by the number of days in the billing period (including all days in the billing period irrespective whether they are public holidays, weekends).

There is no minimum chargeable demand for the SDIC.