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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.

From the 1 July 2020 our customers in the Connection Asset Customers (SAC) Large Tariff Class will be added to the group that will have their Demand charges calculated on kVA. This change will apply to customers that have a meter configured to calculate the Demand in kVA. For our other customers, you'll continue to have your demand calculated in kW. You can have your metering upgraded and move to kVA demand charging. From 1 July 2020, all new connections in this tariff class will be placed on the most appropriate kVA Demand Tariff.

One of the main reasons kVA demand tariffs are being introduced is to encourage customers to improve their power factor. Connection agreements between business customers and us require the maintenance of a minimum power factor of 0.XX.  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 classes from 1 July 2020. 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.