Electrical Connection Autumn 2016

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48 E L EC TR I C AL CONNEC T I ON AU T UMN 20 1 6
A TARIFF-IC OPPORTUNITY
D o you remember when reading
a power bill was simple? When
there were two tariffs – peak
and off-peak – and you could pay the bill
knowing that it was probably correct?
Times certainly have changed. Under
the guise of ‘making things fair’, utilities
have added so much complexity to the
process that these days your power
bill may as well be written in Farsi.
Surprisingly, though, the increased
convolution of power bills could be a
good thing for electrical contractors,
particularly those with SME customers.
Glenn Platt leads the Grids and Energy
Efficiency program within CSIRO’s
Energy Flagship, which focuses on solving
the energy challenges of consumers,
business and grids. He says the issue of
complex tariffs presents an interesting
business opportunity to contractors –
that of education as well as upselling
new technologies.
“Utilities are trying to make things a lot
more complicated,” Glenn says.
“The increased complexity of tariffs
solves a number of problems for people
who run the electricity network. The
theory is that you can use higher prices to
get people to spread their usage out, which
means there will be less peak demand.
“Another problem utilities are facing
is around the use of solar and the fact
that people who have lots of solar often
don’t use a lot of electricity from the
grid, but still require access at night
or on overcast days. As a result, these
customers don’t really pay much for
the grid, which makes grid-reliant users
believe they are subsidising them.
“As a result, utilities are using a
‘demand tariff’, where you get pinged
based on the maximum load you draw
from the grid.”
Glenn explains that the theory behind
the introduction of multiple tariffs is to
steer people’s behaviour.
“From a customer’s perspective, things
are getting a lot more complicated. They
now have to understand all of these
new tariffs and change their behaviour
accordingly, which in some cases just isn’t
possible,” he says.
“A few electrical students I know
struggle to tell the difference between
power and energy, so how will home
owners fare?”
This is where educated contractors
come into play.
“People are starting to call out for
help. Home owners and small business
operators are looking for clarity in
regards to tariffs and how to save money.
This means there’s an opportunity for
contractors to be providing advice to
their customers.
“At the other end of the spectrum,
there’s an opportunity for contractors
to be installing new technologies, like
batteries, which are really well suited
to helping customers save money given
the new tariff structure. Alternatively,
you could install load management
technology or timers on some circuits.
The truth is, there are a range of options
available to contractors.
“This is a complex issue and people
will pay more should they not change
behaviour, which many people don’t
know how to do.”
Glenn suggests contractors look at
the Federal Government’s Energy Made
Easy website, which offers guidance on
all the tariffs in Australia. It will help to
get a better understanding of how to
assist your customers.
> Energy Made Easy
AS POWER BILLS BECOME
INCREASINGLY CONFUSING,
ELECTRICIANS SHOULD USE THE
OPPORTUNITY TO EDUCATE THEIR
CUSTOMERS ON HOW TO SAVE
MONEY. PAUL SKELTON EXPLAINS.
BILLING