Potential for growers to save $$$ - electricity tariff trial

Tuesday, 7th March 2017 // Breaking News, Featured // Comments (0)

Want to better understand your electricity costs and maybe save $$$ on your farm electricity bill? Participate in Ag Tariff Trial

Cotton Australia encourages Queensland growers to participate in the Agricultural Tariff Trial offered by the State Government and Ergon Energy.

The trial is designed to help farmers and irrigators prepare for the loss of the transitional tariffs 62, 65 and 66 in 2020, and to help Ergon better understand the potential to offer controlled load and seasonal demand tariffs.

There are three distinct trial groups for customers to register their interest for:

Trial Group 1 –

Controlled Load Tariff

Trial Group 2 –

Tariff 24 Seasonal Demand Tariff
Trial Group 3 – Load Profile

Participants in this group will have the current Tariff 33 made available to them. At present Tariff 33 is only available to domestic customers and it is used to service hot water heaters and pool pumps.

It is what is called a ‘controlled load tariff’, where Ergon can turn off supply at any time, without notice, as a means of controlling demand across its network. However, Ergon must supply for at least 18 hours per day.

The attraction of Tariff 33 is that it only has a flat usage charge, currently 21.956c/kWh, with no demand or supply charges.

You may find this tariff attractive if you can manage an interruptible electricity supply. For example, if you use electricity to pump water from a bore into a storage dam, and you do not require it to operate 24 hours per day.

This trial will run until 30 June, 2018.

Participants in this group will be placed on the relatively new Seasonal Demand Tariff 24. This Tariff has a relatively high demand charge for weekday peak period use over the three months of summer, a much lower demand charge for weekday peak period use for the remaining nine months of the year, and a relatively low flat rate usage charge.

This tariff maybe attractive to you if you can avoid (or minimise) pumping between 10am and 8pm, Monday-Friday during December, January, February. For example, you have the capacity to meet all your summer pumping demand between 8pm and 10am Monday to Friday, or over the entire weekend.

This Trial Group has a special safety clause that will rebate the participant any difference between what they would have been charged on their current Tariff and what they are charged on Tariff 24.

This trial will run until 30 June, 2018.

If neither Trial Group 1 or Trial Group 2 look attractive to you, then consider participating in Trial Group 3. Here you stay on your existing tariff, but Ergon will supply you with a digital electricity meter, which will be able to gather and record detailed information on your electricity load profile. This data will help you to make a much better informed choice when you have to migrate from your existing tariff in 2020.

This trial will run until 30 June, 2019.

Which trial group is right for you?

  • Trial Group 1: Cotton Australia is confident that, provided you can manage the interruptible supply nature of Trial Group 1, it will provide you with significant financial savings.
  • Trial Group 2: With Trial Group 2, whether you make savings or not will very much depend on how much flexibility your business has to minimise its use during the summer peak period, but there is the safety net provision that you will be no worse off than if you remained on your current tariff.
  • Trial Group 3: This offers you no immediate savings, but will provide you with detailed information that can be used to guide your future tariff choices.

More detailed information:

Want to sign up straight away?

It's simple: go to www.ergon.com.au/agtarifftrial

Still have questions?

Contact Cotton Australia General Manager, Michael Murray: