kVA demand tariffs
The network charges for our major customers are progressively being revised to better match the demand customers have on the electricity network.
Since 1 July 2014 our largest business customers were charged for the monthly demand 'total power' (kVA) rather than 'real power' (kW). In addition, from 1 July 2015, we have introduced a supplementary charge for the excess 'reactive power' demand for these customers.
The above changes relate to how our network business (Ergon Energy Corporation Limited) passes on charges to electricity retailers. If you are on a notified retail tariff, i.e. billed by Ergon Energy Queensland Pty Ltd, the above changes do not apply to you at this time. We have written to all customers who will be affected by these changes.
One of the main reasons kVA tariffs are being introduced is to encourage customers to improve their power factor. A poor power factor places higher demands on the electricity network. There are benefits for customers and our network when power factor is improved.
For more information about why and how these charges are being applied to customers, please read Understanding kVA and kVAr Charges for Major Customers (PDF 1.2 mb).
For more information on network tariffs visit Network tariff strategy consultation.