Customer Protections and Smart Meters – Issues for Victoria
Pensioner two rate (Peak Off Peak) consumption 35000 30000 Cents
25000 20000
Off Peak
15000
Peak
10000 5000 0 Dec/Feb
March/ May June/August
Sept/Nov
Date
4.1.4 TOU tariffs - impact on average household and pensioner household
The following analysis reallocates current peak rate consumption in the single rate and two-rate tariff scenarios into peak, shoulder and off-peak pricing. This reallocation is based on the assumption that households will use 30% of total consumption at peak times, 40% at shoulder times and 30% at off-peak times. 59 The rates and the time of day/week attracting peak, shoulder or off-peak rates are based on the Energy Australia Strategic Pricing Study as well as discussion had with Victorian distribution businesses. Table 11 Hypothetical TOU Tariff
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Peak: 2pm - 8pm Shoulder: 7am - 2pm 8pm -10pm 7am -10pm on weekends Off peak: All other times Fixed charge per day cents
Tariff rate
Proportion of total consumption allocated to that TOU rate
30 cents per kWh
30%
14 cents per kWh
40%
9 cents per kWh 51 cents per day
30%
4.2 Implications of tariff reassignments 61
59
However, it could be argued that households reassigned from a single rate tariff to a TOU tariff will have less than 30% off-peak consumption as hot water and heating systems are more likely to run on gas. 60 The allocation of peak consumption into the various TOU price intervals is based on an estimation of Victorian domestic energy consumption derived from http://www.aph.gov.au/library/pubs/rp/200809/09rp09.htm, Parliament of Australia, Parliamentary Library Research Paper Number 9 (2008-2009) Stewart Needham, The potential for renewable energy to provide base load power in Australia. This publication produces graphs that detail Victorian domestic electricity consumption in both summer and winter.
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