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
Usage charge
Demand charge
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.
Calculating your demand charge
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.
Demand charge peak windows
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.
| Month | Peak period | Off-peak period |
|---|---|---|
| June - August | Residential customers: 3pm - 9pm every day Small businesses: 3pm - 9pm working weekdays | All other times |
| November to March | Residential customers: 3pm - 9pm every day Small businesses: 3pm - 9pm working weekdays | All other times |
| April, May, September, October | No peak periods | All times |
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 cook top 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 3-9 pm peak demand window will help you avoid demand charges.
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.
Frequently asked questions
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.
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.
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.