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.
Non-Market Customer
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
Network Charges
Other Charges
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)
Energy Use
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
Network Charges
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
Actual Demand
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.
Updated 14/5/12
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