Company Electricity Bills Explained
All customers are eligible to negotiate a contract with retailers to obtain discounts. The discounts and types of offers differ pending on the size of usage and what market you fit into.
There are a lot of customers who are eligible to negotiate market contracts that are still on a tariff. These customers could be saving 10-52% if they asked for advice.
There are 2 types of customers in the electricity market. In our last article “What Type of Electricity customer are you” we defined these in more detail. Non-Market Customers (On Tariff) and Market Customers. Customers are also classified as small or large.
In QLD a Non Market Customer is a residential account or small business customer with electricity usage less than 100 MWh (100,000 KWh) (Approx $2000 P/M) or less than 160 MWh in NSW/VIC ($2700 P/M Approx). To calculated where you fit look at your KWh usage and do a rough calculation and calculate it out per annum.
What is a Market Customer
In QLD a market customer Usage more than 100 MWh ($2000 P/M) in QLD or 160 MWh in NSW or VIC
Customer who enters into contract with the market once they leave the regulated tariff rate they cannot go back.
Have to Re-Negotiate contracts
Negotiated Rate with Market + Network Charges and Other
Many Factors Determine Savings
Peak and Off Peak Splits
KW Demand and Load Factor
Market Customers Bills Explained
Bill is broken up into 2 sections.
A contestable bill is generally 50% usage charges (Peak and Off Peak) – these rates you can fix for the contract period.
50% of the bill is Network/Transmission/Distribution and other charges (these charges are controlled and regulated by the government you cannot fix these rates)
Pk – Contract Rate x Energy Loss Factors kWh used = $ Value of Peak Usage
Off Peak – Contract Rates x Energy Loss Factors x kWh used = $ Value of Peak Usage
+ Multipliers on Metered Usage
MLF Marginal Loss Factor : Electricity energy losses on the high voltage lines from generator to regional substation.
DLF Distribution Loss Factor: Electricity energy losses on the electricity distribution system
This is what is applied to a bill to cover the cost of delivering electricity to your business through the network. These are regulated pass through charges.
Network Peak and Off Peak
Network Fixed Charge
Demand Charge : A component of Network Charges based on the maximum amount of electricity drawn from the electricity network during a specified time period.
+ Environmental initiatives
LRET – “Large-Scale Renewable Energy Target” This Federal Government environmental charge applies to customers in all states.
SRES – “Small Renewable Energy Scheme” This Federal Government environmental charge applies to customers in all states.
VEET- Victorian Energy Efficiency Scheme
QLD - GEC Charge – “Gas Energy Cert”
ACT - NGAC – ACT Greenhouse Gas Abatement Scheme.
NSW - ESC – Energy Savings Credit
NSW NGAC – NSW Greenhouse Gas Abatement Scheme Charge.
Carbon Charge – Federal Government Tax.