Financial incentives are headed for customers in New South Wales who invest in technology that limits their electricity use during peak demand periods.
As part of a world-first energy efficiency scheme, consumers are expected to save $1.2 billion on their power bills between 2022 and 2040, according to the NSW government.
Under the Peak Demand Reduction Scheme (PDRS), households and businesses will be rewarded for installing smarter equipment that reduces energy consumption when demand on the grid is high.
“By reducing peak demand we can supply power to everyone who needs it, when they need it, at a lower cost,” NSW energy minister Matt Kean said.
“We are investing $25 million in the scheme to support the development of emerging technologies and software that allow households and businesses to use power when it is cheap and abundant.”
The NSW government stated that discounts will be provided to customers who purchase energy-efficient appliances that run mostly during off-peak periods, like smart pool pumps and solar batteries.
“If all the backyard pool pumps and filters across New South Wales were used outside of peak periods, we could save up to 450 MW (megawatt) – that’s more than the capacity of a generating unit at the Liddell Power Station,” Mr Kean said.
The regulatory framework aims to gradually cut peak demand for electricity over the next two decades, reaching a 10 per cent reduction by 2030.
The PDRS is scheduled to kick off for the 2022-23 summer, as part of the wider Energy Savings Scheme that incentivises the uptake of energy-efficient appliances across NSW.
These savings are tipped to encourage more residents to invest in solar, while also rewarding businesses that rely less on fossil fuels for power.
Compare NSW Energy Providers
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The next three tabs feature products exclusively from AGL, EnergyAustralia and Origin.
Here are the AGL Energy plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the EnergyAustralia plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are the Origin Energy plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
What are peak demand periods?
A peak demand period refers to a time when electricity consumption is at its highest, usually on weekdays from around mid-afternoon to the earlier hours of the evening. Peak times in New South Wales are between 2:30pm and 8:30pm. Annual peak demand occurs in summer and winter where households and businesses typically use more energy through air conditioning and heating.
Can bill-payers save money by reducing energy use during peak periods?
Yes, households connected to a time of use tariff are generally charged a cheaper rate for consuming electricity during off-peak times. This is because time of use tariffs charge a customer a separate usage rate depending on the time of day – peak times being the most expensive. It’s important to note that peak and off-peak periods vary between energy retailers and distribution networks in NSW. Not every customer will benefit from a flexible pricing tariff, particularly if they use most of their energy during peak time periods.
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