Peak Off Peak Changes
Peak Off Peak Changes
Network Distributor changes to tariffs
What changes are there to peak / off-peak tariffs?
You may be aware that your network distributor, and not your retailer (GloBird) is responsible for the wires and poles that connect energy to your property. But were you also aware that these distributors are also responsible for your meter at your property that records your usage?
And – they also set the ‘tariff’ for your meter. If you already know what a tariff is – great! Keep reading. If you are not sure – you can find out a bit more, further down this page including why your network distributor is making this change.
The good news and the bad
| Good News: | The Off-Peak price for electricity remains low and in some cases is lower. |
| Good News: | The Off-Peak period is much LONGER, so you pay the lower off-peak rates most of the day. |
| Good News: | Therefore the Peak period is SHORTER |
| Bad News: | The Peak rate has increased |
The difference looks a bit like this:
Image is for illustrative purposes only. Data pictured is not actual.
In the image above you’ll notice the peak period is very long, this is because most of the old two rate tariffs had a peak rate from 7 in the morning all the way through to 11 at night. However, below demonstrates that the new tariff peak rate costs more, but are only charged for a much shorter period.
Image is for illustrative purposes only. Data pictured is not actual.
The answers you seek are below. Or if you have any questions, you can drop us an email to cs@globirdenergy.com.au and we will explain the distributors decision and help you navigate the best outcome.
What is a tariff?
The way you are charged for power is determined by your tariff. The most common tariff type is a single rate (also known as a flat rate). This means you pay based solely on the amount of power you use, no matter what time it’s used.
Other tariffs are available. For example, the time-of-use tariff has two rates (peak/off-peak) depending on the time of day you use power. You can learn more about the other tariffs here.
Who/Why is changing the tariffs that are currently available?
The Distributors (CitiPower, Powercor, United, AusNet Services & Jemena) have decided to change the tariffs that are available to consumers. They are doing this to better manage their increased cost to maintain the grid. Specifically, they want to ensure the network can handle peak demand. Peak demand is occurring between a tighter time band in the evening (3pm – 9pm). Even though overall usage is lower the demand on the network during this time is higher than ever.
For the network WHEN you use the power is far more important than how much you use. For example, a customer who only uses a small amount of power all day, but then puts huge demand on the grid at say 6pm causes more stress on the grid than a customer who uses a flat amount all day. Read more about network changes to tariffs.
I’m a residential customer, what does that mean for me?
The single rate (flat rate) tariff that most of us are used to will no longer be the standard tariff and any new meters will instead be placed on a new two-rate tariff. Some customers who were on older (now expired) tariffs will be moved onto this new two-rate tariff.
This means that the time bands of peak and off-peak periods are changing compared to older (now expired) tariffs.
What peak and off-peak times apply for the new two-rate tariff?
The peak period is now shorter – between 3pm and 9pm every day (including public holidays and regardless of season). Off-peak will apply at all other times. Compared to many of the tariffs, this is a much smaller window for “peak” rates. Some expired tariffs had “peak” periods from 7am to 11pm, although usually weekends did not always have peak periods, now they do.
Who will be assigned to the new two rate time-of-use tariff?
The following customers will be assigned to the new two rate time-of-use tariff:
- New connections
- Customers who choose to install solar or battery power
- Customers on older (now expired) time-of-use tariffs
Can I opt-out and change to another tariff?
Yes. You may have the option to change to another tariff. Please be aware that GloBird does not control what tariff you can access, the network distributor has sole discretion. We are happy to assist you to apply for another tariff.
You can apply to opt-out and change to a single-rate tariff or single-rate-with-demand tariff if you’re not satisfied with the new time-of-use tariff. Please contact us on 13 3456 or email us at cs@globirdenergy.com.au if you would like to apply for another available tariff.
How can I find out more the distributors decision to changes tariffs?
Below is a link to some of Victorian distributor’s page that explains their plan in detail including listing the tariff codes: