Modernising electricity pricing
Our customers use the most electricity each day between 4pm and 8pm (known as peak demand) when they've returned home for the day and use appliances such as televisions, computers, microwaves and air conditioners.
Due to the high (peak) demand, it costs more for us to maintain our network between these times. However, under the current pricing structure, customers simply pay a flat rate for electricity and aren't rewarded for using electricity outside of high demand times.
With technologies such as Solar PV and battery systems, customer behaviours have gradually changed but the electricity pricing structure and tariffs haven't evolved to reward customers for using these technologies in a way that reduces high demand on the electricity network.
By modernising electricity pricing, customers can take advantage of technology to help them save money. A new 'demand based tariff' means a portion of the electricity charges reflect the maximum amount of electricity used in high demand times. At all other times the electricity charges are lower rewarding customers who use electricity in these times.
Our tariff reform strategy is designed to understand what information and services customers need to transition to these new tariffs. We recognise that electricity prices are a key component of the cost of living and we're committed to working with customers and stakeholders as new tariffs are introduced. A key component of this strategy is a voluntary 'opt in' approach to ensure we can work with customers to understand and respond to the new tariffs.
Refer below for more information on our new demand-based approach to tariff reform.
The new demand-based pricing model is based on providing our customers with choice.
By making smart energy decisions and adopting new technologies, our customers will be able to reduce their electricity bills. For example, if they operate large, energy-intensive appliances such as pool pumps and hot water systems during low demand periods (in the middle of the day or after 8pm), they will pay cheaper rates for electricity.
This is a fairer system where customers can choose to use electricity at times when the price is cheaper or adopt new technologies, which reduce their reliance on the network.
We widely consult on our tariff reform processes and we'll continue to consult with customers and other key stakeholders to ensure tariff structures reflect our customers' needs and behaviours.
Publications and Presentations
We've produced a number of publications and presentations which outline our approach to tariff reform for 2015-2020. Visit our Your network, your choices, Tariffs beyond 2015 and Large customer tariff reform webpages for a list of these publications and presentations.
Through our Tariff Reform Implementation Partnership (TRIP), we work in conjunction with customers, government, retailers, and other stakeholders to implement future tariffs in South East Queensland.
A Real Time Tariff Study was conducted and we worked with a number of residential customers who adopted the voluntary demand tariff from 1 July 2016. The study, in partnership with retailers and key stakeholders, used data and research to understand customer experiences on the new tariff and how communication and services can assist them in responding in ways that allow them to reduce their electricity bills.
Participating customers were provided with information about how they can respond to the new structure and were surveyed about how well they understand it. Feedback from the study will be used to help inform our approach to tariff reform from 2020 onwards.