Off-peak electricity pricing coming to South Australia
UPDATED: HOUSEHOLDS will be able to take advantage of peak and off-peak pricing under changes that the national energy regulator says will give consumers more control over their bills.
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READ BELOW: One place unhappy with the lights on
HOUSEHOLDS will be able to take advantage of peak and off-peak pricing under changes that the national energy regulator says will give consumers more control over their bills.
The Australian Energy Regulator believes the change could reduce peak demand in the state, protecting against future blackouts caused from a lack of supply.
It comes as the Australian Energy Market Operator released a statement this morning saying SA should avoid forced blackouts over the coming week of hot weather as long as the high temperatures don’t cause unexpected equipment failures.
Smart meters will also be introduced in SA from December which measure and record how much electricity a household or business uses at 30 minute intervals.
Currently, most power bills in SA are based simply on how much electricity a customer uses without taking into account the time of day.
AER board member Jim Cox said the new tariffs, coupled with smart meters reforms, would allow energy retailers to develop more tailored offers for consumers.
Details of the proposed peak and off-peak rates should be released later in the year. Retailers would then choose how that was passed on to customers.
By allowing consumers to choose how and when they use electricity and take advantage of peak and off-peak pricing, Mr Cox said people would have more control over their bills.
“These changes to network tariffs allow retailers to develop offers that help consumers get better value from the energy choices they make,” he said.
“These tariff reforms will also help promote better use of the existing poles and wires by rewarding customers for shifting their electricity consumption to off-peak periods.”
Mr Cox said much of the cost of building the South Australian network was to deal with only a few days of very high electricity demand during the height of summer each year.
“This will help reduce the need for future network upgrades and replacement, lowering prices for all customers in the long run,” he said.
“SA stands to achieve bigger long term gains than other states and territories through lower network investment and lower prices for consumers if peak demand can be reduced.”
Differential pricing would be offered through retailers such as AGL, Origin and Simply Energy on an opt-in basis.
The decision does not change how much revenue distributor — SA Power Networks — was able to recoup from customers in charges in total.
The next step in the reform process and relates to how distributors divide up that total amount of revenue into network prices that apply to individual consumers. Likely it would mean peak prices would be higher than the current price and off-peak would be lower.
Energy Minister Tom Koutsantonis said it was disappointing AER have determined to introduce cost-reflective pricing on an opt-in basis because it could mean no retailers would offer this type of demand tariff pricing.
“In our submission to the AER we requested cost-reflective prices be phased in on an opt-in as well as mandatory basis for new customers, so that retailers would be forced to offer these services,” he said.
“Unless retailers choose to offer these services in SA this determination from the AER will have no impact on customers’ power bills.”
AEMO has been criticised for its handling of a heatwave earlier this month in which 90,000 homes were blacked out.
It says there are currently no forecast shortfalls in power supply against demand, but: “changes in weather forecasts and or equipment failures all can impact the situation quite quickly”.
“AEMO is not forecasting electricity supply shortfalls for the high temperatures anticipated for the next four days in SA,” it said.
“However these conditions can change quickly due to unexpected generator or network issues.
“Indications suggest that generation supply in the power system will be able to meet demand.
“However given the dynamic nature of the power system, changes in weather forecasts and or equipment failures, all can impact the situation quite quickly.
A protracted heat period, while not necessarily classed as “extreme weather”, has the potential to impact the performance of some electricity equipment and infrastructure over the course of that period.
“AEMO is engaging closely with local generators, network businesses and the SA government regarding reserve levels, generator availability, network outages and the forecast conditions to securely manage the power system. AEMO will continue to monitor the market and the integrity of the power system and will inform of any updates as required,” it said.
Temperatures are expected to rise to 37C in Adelaide today and remain in the mid to high 30s until Thursday. Friday is forecast for 34C, with declining temperatures for the rest of the week.
One place unhappy when the lights stay on
By Kurtis Eichler
THE rope lights on Peel St were designed to create a soothing ambience for after-dark diners.
Instead, revellers, traders and some councillors are complaining the illumination is far too bright, with one describing it as “lit up like an operating table”. They say the intensity clashes with the mood of the popular bar and eating strip.
Councillor Anne Moran is pushing for a “small budget” from Adelaide City Council to replace the bulbs with duller ones. The council spent $14,000 to install the lights last year as a trial to “enhance the night-time economy”.
“The whole point ... is the ambience,” Cr Moran said. “So if it is lit up like an operating theatre, I’m disappointed.”
Alfred’s manager Matt Holding said many customers seated outside the bar complained about the glow. “They call it the spotlight. It’s way too bright,” he said .
La Moka manager Manuel Francesconi said duller bulbs would be better. “They are bright,” he said.
Diner Florence Holland, 22, said the idea was “not the council’s brightest”.
The council’s operations director, Beth Davidson-Park, said the council was trialling lighting options for the laneway and said the design was “heavily driven by the traders”.