A new requirement applies to electricity retailers operating in South Australia to have a standing offer which includes a tariff structure that incentivises electricity use in low demand periods.
The requirement which is in effect as of 28 September 2020 applies to retailers' standing offers for customers with interval meters. This ensures retailers make offers that reward customers for using electricity in low demand periods.
For residential customers, retailers' standing offer tariff structures are required to pass on either:
- The time of use tariff structure of the SA Power Networks residential time of use tariff; or
- The demand tariff structure of the SA Power Networks residential prosumer tariff.
For small business customers, retailers' standing offer tariff structures are required to pass on either:
- The structure of the small business time of use tariff published by SA Power Networks.
- The structure of the small business time of use with demand tariff published by SA Power Networks.
Retailers have the choice of which prescribed tariff structure they wish to use for the standing offer applicable to small customers that have an interval meter – either the time of use structure or the Prosumer tariff structure.
Further, retailers can meet new requirements with a standing offer tariff structure of the retailer’s choice where the retailer has been assessed to be providing market offers that reward customers for using electricity in low demand periods. The department is now commencing the consideration of retailer’s offers.
Retailers are invited to submit compliant market offers (PDF, 311.4 KB) for the Minister’s assessment from 12 August 2020.
Why is the South Australian Government making these changes?
The Government has received advice from the Australian Energy Market Operator (AEMO) on the emerging challenges of minimum operational demand in South Australia. Without action, low demand conditions could represent a real risk to the supply of electricity being disrupted to all or part of the South Australian community. Increasing consumption into low demand periods was identified as an option that can assist to mitigate this emerging challenge.
By placing a new requirement on electricity retailers to provide tariff structures to customers with interval meters which incentivise electricity use in low demand periods, it is hoped that consumers will see more offers that reward them for using electricity in low demand periods.
Further information about Time of Use tariffs.
For further information regarding the regulatory changes for smarter homes please contact the Office of the Technical Regulator: