How do demand charges work?

A demand charge on your electricity bill is typically calculated on the level of your household’s demand on the electricity network (i.e. the poles and wires) during a specified time period or window.

Demand charges encourage you to use electricity more often outside of peak times. The lower your demand in those peak times, the less you pay for using the network. A monthly demand charge changes depending on your demand. With demand charging, you can benefit by lowering your electricity demand during the busiest times. You’ll pay no more than your share for the load you place on the network.

For residential customers: Ausgrid’s peak pricing window is every day between 3pm and 9pm all days in the June-August and November-March periods.

For small business customers: Ausgrid’s peak pricing window is Monday to Friday (working weekdays) between 3pm and 9pm all days in the June-August and November-March periods. 

If you are on a Demand Pricing Plan:

• Ask your retailer for the days and times their peak window applies.
• Ask your retailer how they calculate your demand charge. This will usually be the one day of the month when the highest 30-minute period of consumption occurs, during that day’s peak demand window, measured in kilowatts and multiplied by the number of days in that month.

Your Energy Retailer may show the demand charge on your electricity bill depending on the type of plan you choose.

Demand Tariffs require smart meters

Demand Tariffs are only available to customers who have a smart meter installed. If your meter has recently been upgraded to a smart meter you may have been put onto a Demand Tariff or Demand Pricing Plan. If demand based usage does not suit your energy use, you can ask your Energy Retailer to be reassigned to another available tariff option, such as Time of Use Pricing.

How will a demand tariff affect customers with solar panels?

Many customers with solar panels currently receive a feed-in tariff for energy they feed into the network. Solar customers will still receive a feed-in tariff from their retailer. For customers on a demand tariff, solar customer usage and demand will be charged in the same way as other customers on the tariff.

Those solar customers drawing on batteries for energy during the peak demand window can expect a minimal monthly demand charge. For solar customers using no electricity at all from the grid, they will continue only to pay the fixed daily supply charge on their bill. A metering service charge may also apply.

Customers and/or Energy Retailers can opt in to Ausgrid’s Export Tariff, which features a low charge for energy exported into the network between 10am and 3pm, and an export reward between 4pm and 9pm.

From 1 July 2026 all small customers who are export capable will be assigned to this export tariff. We expect this change will have a minimal impact on overall electricity costs for our solar exporting customers. Find out more about Solar Tariffs.

Controlling your costs

If you are on a demand pricing plan and you experience a bill increase, there are ways to take control of your costs. 

Are you on the best deal?

Ask your retailer for a different plan or shop around for a better deal.

Do you have access to your electricity use data?

Many retailers offer internet and mobile apps that make your smart meter data easy to understand. With these online tools you can typically see your daily, weekly and monthly usage patterns, including your demand during the peak demand window. If your electricity retailer does not offer these tools, you can shop around for a retailer that does.

A smart meter can give you a clear picture of your electricity usage. If you don’t already have one, you can ask your retailer for a meter upgrade. Remember that this will trigger a demand network tariff to be applied to your property by Ausgrid.

Tips for controlling your demand

If you do see a bill increase, you can control your demand charge with some simple changes to your household routines. Find out more via the link below. 

The peak demand window

Bill control tip 1: Check your peak demand window

When demand is measured, is typically between the afternoon and mid-evening. Check with your retailer for the exact times the demand window applies.

Bill control tip 2: Taking turns

Your demand is measured in 30-minute blocks during the peak demand window. So, by taking turns with some appliances, rather than running many at once, you can avoid high demand peaks during any 30 minute block. For example, running your clothes dryer after cooking dinner rather than using your cooktop and clothes dryer at the same time. 

Another way to reduce your demand charge is to change your household routines and where possible shift your appliance use outside the peak demand window. For example running your dishwasher or pool pump overnight or during the earlier part of the day. 

Find out more tips and how you can reduce your energy bill in 'Ways to save on your energy bill'.

What if my bill goes up on a demand pricing plan with my retailer?

If your bill goes up and you can’t change how you use electricity to reduce it, you don’t you don’t have to have a demand charge. Ask your retailer for a different electricity plan or shop around retailers for a better deal.

Are flat rate consumption (or usage) tariffs still available?

While your retailer can still offer you a flat energy plan, Ausgrid’s flat network tariffs are now closed to new customers to help make energy more affordable for the long term.

What if my bill goes up on a demand pricing plan with my retailer?

If your bill goes up and you can’t change how you use electricity to reduce it, you don’t you don’t have to have a demand charge. Ask your retailer for a different electricity plan or shop around retailers for a better deal.

Are flat rate consumption (or usage) tariffs still available?

While your retailer can still offer you a flat energy plan, Ausgrid’s flat network tariffs are now closed to new customers to help make energy more affordable for the long term.