How do demand tariffs work with Amber?

What is a demand tariff?

Demand tariffs includes charges for the amount of energy used (kWh), as well as the peak electricity demand during specified periods called "demand windows", usually measured in kilowatts (kW). If you're on a demand tariff, this means your bill reflects both how much electricity you consume overall, and the most electricity you used within a demand window. 

What are the benefits of being on a demand tariff?

Demand tariffs were created to encourage households to smooth their electricity usage throughout the day, easing the load on energy infrastructure during busy times. The usage rate (¢/kWh) is usually lower on a demand tariff which means that you can reduce your electricity costs if you can minimise your usage during the demand window.

What is the drawback of a demand tariff, and how do I minimise my demand charge?

The main downside of a demand tariff is that if your usage during the demand window is very high, you could face a high demand charge, increasing your overall bill. For example, charging an electric vehicle during a demand window would result in a very high demand charge. Though for most households and in most cases, you can keep your demand charge under control with some awareness and management.

To minimise your demand charge, there are three things to keep in mind during your applicable demand window:

1. If you have a battery, ensure it's charged up sufficiently beforehand to supply your home.
2. Avoid using multiple energy intensive appliances at the same time.
3. Shift as much of your usage to off-peak periods.

👉 The demand charge only applies to usage during the demand window and is not impacted by how much energy you use outside of this demand window.

How is my demand charge calculated?

The demand charge on your bill is based on the highest half-hour of electricity usage (kWh) during the demand window. Here's how your demand charge is calculated:

1. Take the highest 30 minute interval of usage within a demand window which is the peak usage in kWh.
2. Multiply the peak usage by 2 to calculate the peak demand in kW.
3. Multiply the peak demand kW, by the demand rate in ¢ by the number of days in the month.

Wait, why is my usage doubled?

A kilowatt is a unit of power which is the rate at which energy is being used, at a given instant. Mathematically it's equal to "kilowatt-hour per hour". A rate of 1 kW means that energy is flowing at a pace that would total 1 kWh if sustained for a full hour.

Your electricity meter doesn't measure kW directly as it records usage in kWh. To turn a 30-minute recording of electricity usage into an hourly rate, we double it, since 30 minutes is half an hour.

Example: Jack and Jill use the same amount of energy over the month but pay different demand charges

One night, Jack ran the air-conditioner, dishwasher and dryer at the same time, using 2.5 kWh in a single 30-minute window. Jill spread the same appliances by using them at different times, so her highest 30-minute window only reached 1.5 kWh. Over the full month, they used the same total energy but Jack's peak usage was more intense.

*Different networks have different demand tariff structures including the rate, the demand window duration and demand window timing. Skip to When is my demand window? or What other tariff options are available? to learn more.

Where do I see my demand charges?

If a demand charge applies, you'll see it in two places on your bill:

1. Charges Summary on page 2 where it is listed as "Network Demand Charges" and shows the total cost for the billing period.
2. Demand Charges section on page 3 where it is listed as "Network - Peak Demand" and is broken down in more detail, including:
   - Dates: start and end dates of the billing period
   - Amount: your peak demand in kW
   - Price: the demand rate expressed as $/kW/day
   - Cost: the total for that line item 

How does my battery with SmartShift work on a Demand tariff?

SmartShift knows you're on a demand tariff and is designed to reduce your exposure to high demand charges by ensuring the battery is charged sufficiently ahead of the demand window, prioritising self-consumption during the demand window and smoothing demand if the battery is expected to run out.

Learn more: How do demand tariffs work with a battery?

When is my demand window?

You can see your demand windows in the Amber app, on the Live Prices tab – it's usually highlighted and labelled accordingly. You can also check via the Settings tab by tapping on View tariff details.

If you're not sure when the demand window applies, please write to info@amber.com.au and we can let you know what your demand window is.

What other tariff options are available?

To avoid the demand charge altogether, you may consider switching to a different tariff. It's important that you understand each network has different tariffs available and there are rules about switching – in general, tariff changes are limited to once every 12 months.

To view your options, we recommend visiting your network distributor's website and searching for their tariff structure statement for the current financial year. Tariff suitability is unique to each household's consumption profile, so it's generally not something we can advise on. That said, if you're unsure, please write to info@amber.com.au so we can let you know which tariffs are available for you.