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LoadSmart or “Time of Use” is a new system of pricing electricity for businesses which EnergyAustralia is progressively implementing throughout its electricity network. LoadSmart applies for small and medium business customers who have electricity bills greater than about $4000 per year.
Why is EnergyAustralia implementing LoadSmart?
Over time there has been a substantial growth in electricity demand, in particular an increase at certain times, known as ‘peak demand’. Increased business demand together with increased usage of appliances such as reverse cycle air conditioners and the use of more and bigger electrical appliances in peoples' homes is driving this trend.
Electricity prices in Australia are among the cheapest in the world. By encouraging more efficient use of electricity, we may be able to avoid additional infrastructure expenditure and, as a result, keep electricity price increases to a minimum. So, like many utilities around the world, EnergyAustralia wants to actively work with its customers to help achieve this objective.
In moving to this new system, EnergyAustralia understands electricity customers want to be able to continue with normal activities while continuing to receive an affordable electricity bill.
EnergyAustralia is currently rolling out new ‘smart’ meters that are able to record consumption during the peak, shoulder and off peak periods. The new meters and LoadSmart pricing will be implemented progressively over the next decade as part of a long term plan to help reduce the increasing peaks in electricity demand by spreading electricity consumption more evenly across the day.
What are the changes?
- Up until now, the price you have paid for electricity has been the same throughout the day, except for some limited controlled load off-peak rates. Your current pricing will be replaced by ‘time of use’ pricing called LoadSmart which is broken up into peak, shoulder and off-peak time bands.
- LoadSmart enables you to save money by moving some of your energy consumption away from the more expensive peak period to the less expensive shoulder and off-peak periods.
- Your electricity consumption will be recorded over half-hour intervals, 24 hours a day and stored in the meter, recording the amount of electricity that is used and the time of day it is used.
- The price depends on the time of day and whether it is a working weekday or weekend. This will reflect more accurately the costs of supplying electricity to you.
- A capacity charge has been introduced to contribute to the cost of network capacity required to deliver electricity to your premises. This will be based on your maximum demand for the year to date. It only applies for the peak period (2pm - 8pm on working weekdays).
The good news is that even if customers don't feel it's possible to move some of their usage to cheaper time periods, in most cases their bills will not increase under LoadSmart.
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