Demand tariffs
What is a demand tariff?
Under this tariff, special demand meters record the electricity used as well as the power measurement, known as the 'demand'.
Aurora Energy's kilowatt (kW) and kilovolt amp (kVA) demand tariffs consist of two separate metered components:
- a charge per kW or kVA for demand
- a charge per kilowatt hour (kWh or unit) for energy consumed.
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Saving money
A demand tariff can save you money when your electricity demand profile (load factor) is good, i.e. the electricity network capacity is being used optimally.
Generally, only high energy consumers with a load factor above 27% would find a demand tariff cost effective.
Many businesses that switch to a demand tariff are high Tariff 22 consumers but have low demand requirements - businesses that don't have big surges of energy demand.
Please note: Demand tariffs are based on measuring the maximum demand at any given time so if you can reduce your load factor or correct a poor power factor, you may be able to make savings by moving to a demand tariff.
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