Large users of electricity in New South Wales, nominally those using more than 160MWh per annum, must purchase their electricity from the National Electricity Market . In Queensland this figure is presently 200MWh.  The pricing formula which applies to this Market consists of a negotiable energy component, a non-contestible network charge, a metering component and some fixed fees and charges.  Consequently the ability to minimize electricity costs relates not only to the best price for the energy component but probably more importantly to the characteristics of the usage pattern.  The optimum purchase price would be achieved when the DEMAND (or instantaneous use of power) is as low as possible, and the maximum use is made of OFF-PEAK power.

EXAMPLE:  If an amount of 20,000kWh is used each month and the DEMAND was only 28kW, then for energy prices of 6 cents (peak and Shoulder) and 3 cents (off-peak), the average cents per unit of electricity would be 9.2 cents.  Should this DEMAND rise to say 50kW, then the average price changes to 10.3 cents (an increase of 12%).

For all electricity users the issue of how electricity is used and the value obtained from that energy is important.  The best way to reduce electricity costs is to not use it.  Apart from price we should also be remembering that every kWh of electricity that is produced from cola fired power stations we are producing 1 kg of CO2 (Greenhouse Gases).

Use the calculator to estimate your costs and how it would vary by modifying when you use the power.

Similar to many issues for the Large User, medium users need to consider what value they are getting for their electricity dollar.  The choice of tariff (formula) is greater and advice should be sought from Retailers or if you like Partners can offer some advice. 

EXAMPLE :  For a usage of 8,000 kWh a month and a usage pattern of 15% peak, 35% shoulder and 50% off-peak with a demand of 20kW in each period.  Use the calculator to find the best tariff.

Similar to other categories you have a choice.  Many domestic users have Off-Peak hot water and probably use about 50% of their electricity in this category.  As water heating is so critical to most household electricity bills it may be worthwhile considering different types of water heating, such as HEAT PUMPS.  Whilst they still use electricity, it isn’t much.  The QUANTUM Heat Pump uses only 25% of the power required to heat water, as an electric system.

Take a look at our Energy Management pages to research some of these options.

The opportunity to minimise electricity costs is as much related to the type of User as it is the buying price and energy management strategies employed. Under certain circumstances it may be beneficial to use one primary electricity account to purchase power for a development of Units in an Apartment block, group of shops, caravan park or resort. The electricity Act specifies circumstances when this may occur and these details can be found on the NSW Government Website . Each State has different Acts & Codes.

By using the purchasing power of several small electricity users in the one location, there may be benefits in the cost of the purchase.

NEMMCO is the Market Regulator and links up the de-regulated electricity market in SA, VIC, NSW and QLD.

Each State has a different timetable for implementing full de-regulation.  Click here to find the latest prices for electricity.

The contestable electricity market creates both opportunities and threats for electricity users in the eastern states of Australia.  The purchase price for electricity paid by Retailers changes every ¼ hour.