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kVA demand tariffs

Demand charges may be calculated on kVA or kW, 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'.

For our largest business customers, kVA demand tariffs have been gradually introduced since 1 July 2014, and from 1 July 2015 we introduced a supplementary charge for the excess 'reactive power' demand, known as an excess kVAr charge.

One of the main reasons kVA demand 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.

The following guide details how kVA and kW demand tariffs are applied across the various customer classes1 from 1 July 2017. Please speak to your electricity retailer to confirm what tariffs have been applied to your premises.

Customer classification1Demand charging (kVA or kW)Excess kVAr charge
Individually calculated customers (ICC) – consuming >40GWh/yearNon-Ergon Energy Retail customers: kVA

Non-Ergon Energy Retail customers: Yes

Ergon Energy Retail customers – kVA or kW, dependent on customers tariff

Ergon Energy Retail customers – Yes or No,  dependent on customers tariff

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

Non-Ergon Energy Retail customers: kVA

Non-Ergon Energy Retail customers: Yes

Ergon Energy Retail customers – kVA or kW, dependent on customers tariff

Ergon Energy Retail customers – Yes or No,  dependent on customers tariff

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

kWN/A

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

kWN/A

Footnotes

  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. As per our Tariff Strategy Statement (PDF 2.3 mb), there is no intention to introduce kVA demand charging in our Network area for SAC Large Customers prior to 2020.
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