What is demand?

Demand is how much, or how little, your household uses the electricity network (poles and wires) at a particular time. Demand is different from consumption, which is the total amount of electricity you use over a certain time.

What is demand pricing?

Customers with a smart meter have the option to select a demand tariff or pricing plan. A demand tariff includes a charge for using electricity at the busiest times, which typically start between mid-and late afternoon and end mid-evening (peak periods).

A demand pricing plan is usually made up of three components:

Supply charge - this captures the fixed cost of supplying electricity to your home. It is a daily fixed charge, meaning that it does not vary with the amount of electricity used.

Usage charge - this is based on the electricity you consume throughout the billing period.

Demand charge - this is based on how much electricity you use during a specified peak window.

Why do we have demand pricing?

Customers’ electricity demand during the busiest times is the main driver of future costs for electricity networks, which results in higher bill prices for everyone. By encouraging customers to use electricity outside of the busiest times, we can reduce future costs and bill increases.

How is the demand charge calculated?

How your demand charge is calculated depends on the retailer you are with. Different retailers may use different approaches. Typically, it’s calculated on the one day of the month during the peak window when the highest 30-minute period of consumption occurs. This peak is measured in kilowatts and multiplied by the number of days in that month.

For information on Ausgrid’s demand charges, see Ausgrid’s 2025 network price list.

How do demand charges work and what is my demand charge peak window?

Demand charges encourage you to use electricity more often outside of peak times. The lower your demand in those peak times, the less you pay for using the network.

The demand charging windows are summarised below. These are not necessarily the windows that apply to you. The windows that will apply to you depend on the electricity retailer you are with and whether your retailer has decided to adopt Ausgrid’s windows. Different retailers can offer different windows. Ask your retailer for the days and times their window applies. 

For residential customers: Ausgrid’s peak pricing window is every day between 3pm and 9pm all days in the June - August and November - March periods.

For small business customers: Ausgrid’s peak pricing window is Monday to Friday (working weekdays) between 3pm and 9pm all days in the June - August and November - March periods. 

How will a demand pricing plan affect me if I have solar panels?

For customers on a demand pricing plan, solar customer usage and demand will be charged in the same way as other customers on the pricing plan.

Solar customers drawing on home batteries for energy during the peak demand window can expect a minimal monthly demand charge. Solar customers using no electricity at all from the grid, will continue to only pay the fixed daily supply charge on their bill. A metering service charge may also apply.

As of July 2025, solar customers will also be allocated to a two-way solar tariff at the network level. Find out more about  Solar Tariffs.

How can I minimise my demand charge?

Taking turns

One way to reduce your demand charge is by taking turns with some appliances, rather than running many at once. For example, running your clothes dryer after cooking dinner rather than using your cooktop and clothes dryer at the same time. 

Time shifting

Another way to reduce your demand charge is to change your household routines and, where possible, shift your appliance use outside the peak demand window. For example, running your dishwasher or pool pump overnight or outside the 3-9pm peak demand window will help you avoid demand charges.

Find out more tips and how you can reduce your energy bill in 'Ways to save on your energy bill'.

Talk to your retailer to better understand your demand pricing plan

If you are on a demand pricing plan:

• Ask your retailer for the days and times their peak window applies.
• Ask your retailer how they calculate your demand charge. This will usually be the one day of the month when the highest 30-minute period of consumption occurs, during that day’s peak demand window, measured in kilowatts and multiplied by the number of days in that month.
• Ask your retailer for a different plan or shop around for a better deal.

Your energy retailer may show the demand charge on your electricity bill depending on the type of plan you choose.

Access your electricity usage data

Many retailers offer internet and mobile apps that make your smart meter data easy to understand. With these online tools you can typically see your daily, weekly and monthly usage patterns, including your demand during the peak demand window. If your electricity retailer does not offer these tools, you can shop around for a retailer that does.

What if my bill goes up on a demand pricing plan with my retailer?

If your bill goes up and you can’t change how you use electricity to reduce it, you can ask your retailer for a different electricity plan or shop around retailers for a better deal.

Visit our 'Engaging with your Retailer' section for further advice on how to discuss your bill with your retailer.