kVA demand tariffs

Demand charges may be calculated on kVA (kilovolt ampere) or kW (kilowatt), depending on the classification of your business, your electricity retailer or which tariff you are on. kVA demand tariffs are based on 'total power' while kW demand tariffs are based on 'real power'.

Refer to our Understanding power factor for more information on the difference between kVA and kW.

For our largest business customers, kVA demand tariffs have been gradually introduced since 1 July 2014.

From 1 July 2020, our customers in the Standard Asset Class (SAC) Large Tariff Class will be added to the group that can have their demand charges calculated on kVA, with the exception of the SAC Large Seasonal Time of Use Demand Tariff, which will remain as a tariff with kW demand charging only (this tariff has been closed to new customers from 1 July 2002). This change will apply to customers who have a meter capable of measuring demand in kVa.

For our other customers, you'll continue to have your demand calculated on a kW basis and will have the choice to have your metering upgraded to move to kVA demand charging (exactly how your retailer passes on these charges may vary).

From 1 of July 2020, all new connections in this tariff class will be placed on the most appropriate kVA Demand Tariff. More information about our Network tariff structures, rates and eligibility can be found on our Network tariffs webpage.

Power factor and KVA tariffs

One of the main reasons kVA demand tariffs are being introduced is to encourage customers to improve their power factor. A site that has high power factor may benefit from moving to a kVA based tariff by having a lower bill.

Connection agreements between business customers and us require the maintenance of a minimum power factor of 0.80 – 0.90 (depending on the type of connection). A poor power factor places higher demands on the electricity network. There are benefits for customers and our network when power factor is improved.

How kVA and kW demand tariffs are applied

The following guide details how kVA and kW demand tariffs are applied across the various customer classes from 1 July 2020. Please speak to your electricity retailer to confirm what tariffs have been applied to your premises.

Customer classification1Ergon Energy Retail customersNon-Ergon Energy Retail customers2
Individually calculated customers (ICC) – consuming >40GWh/yearkVA


Connection asset customers (CAC) 4GWh - consuming 40GWh/year



Standard Asset Customers2 – Large (SAC Large – consuming 100MWh – 4GWh / year

Anytime demand tariffs kW or kVA (optional dependent on meter capability)

Seasonal Time of Use Demand (STOUD) – kW

Anytime demand tariffs  - kVA or kW (dependent on meter capability)

Time of use demand (LTOUD)  – kVA

Seasonal Time of Use Demand (STOUD) – kW

Standard Asset Customers – Small (SAC Small) - consuming <100MWh/year



  1. A customer's classification is normally shown on the electricity bill, or contact your electricity retailer.
  2. Requirements for SAC Large Customers vary from those for the Energex network area in South East Queensland.