Frequently Asked Questions

Q1. Why is EnergyAustralia implementing PowerSmart? Q2. How does PowerSmart Home work? Q3. How much money can I save with PowerSmart Home? Q4. Is EnergyAustralia introducing PowerSmart just to make money? Q5. Will a new electricity meter be installed? Q6. Will I have to turn off my electrical appliances? Q7. Does this affect my existing Controlled Load (Off Peak 1 or Off Peak 2)?

1. Why is EnergyAustralia implementing PowerSmart? Over time, there has been a substantial growth in electricity demand, in particular an increase at certain times, known as ‘peak demand’. Increased usage of appliances such as reverse cycle air conditioners and the use of more and bigger electrical appliances in people’s homes together with increased business demand is driving this trend. Electricity prices in Australia are among the cheapest in the world. If we do nothing to limit the growth in demand, investment in both the capacity of power stations and EnergyAustralia's electricity network is likely to continue to increase in the foreseeable future and this may lead to higher electricity prices. So, like many utilities around the world, EnergyAustralia wants to actively work with its customers to encourage more efficient use of electricity and help reduce peak demand. In moving to this new system, EnergyAustralia understands electricity customers want to be able to continue with household activities like heating and cooling, cooking, watching tv, using their computer and taking a bath when they want, while continuing to receive an affordable electricity bill. Back to Top

2. How does PowerSmart Home work? Most people are currently paying the same rate for electricity no matter what time of the day they use it (except for customers with existing Off Peak 1 and Off Peak 2 rate which are usually for hot water). With PowerSmart Home the day is divided into pricing periods or time-bands which are called Peak, Shoulder and Off Peak. The electricity rates are different in each if these pricing periods, so you pay different rates for your electricity according to the time of day it is used. The table below shows the difference between standard regulated ‘flat’ rates and PowerSmart Home rates. Rate Comparison (including GST) PowerSmart Home energy rates* . Times Ex GST Inc. GST Unit Off-Peak 10pm to 7am every day 5.5000 6.0500 cents/kWh Shoulder 7am to 2pm & 8pm to 10pm working weekdays and 7am to 10pm on weekends and public holidays 9.9000 10.8900 cents/kWh Peak 2pm to 8pm on working weekdays 27.5000 30.2500 cents/kWh Service Availability Charge 34.0000 37.4000 cents/ day/ connection point * The above rates are current as at 1 July 2008 and have been set in accordance with the June 2007 determination by the Independent Pricing and Regulatory Tribunal (IPART). Please note: in addition to the new PowerSmart rates, if you had Off Peak 1 or Off Peak 2 supply shown on your bills before you were billed PowerSmart Home rates, you’ll continue to pay the regulated rates as published on our website for this supply. Shoulder and off-peak periods are cheaper than standard 'flat' regulated rates and account for over 80% of year. The average PowerSmart Home customer uses almost 80% of their consumption in the shoulder and off-peak periods. Find out more... Back to Top

3. How much money can I save with PowerSmart Home? Most residential customers use the majority of their electricity during the shoulder and off peak periods. PowerSmart Home offers you an opportunity to reduce your electricity bill if you are able to make small adjustments and move some of your electricity consumption out of the peak period and into the shoulder and off peak periods. For example, the pool pump is an easy one to target. You could turn the thermostat on your air conditioner up a degree or two in summer or down one or two degrees in winter during the peak period. Or you may be able to move the use of appliances like your dishwasher, washing machine, clothes dryer and pool pump outside peak periods. Find out more... Back to Top

4. Is EnergyAustralia Introducing PowerSmart just to make money? No, PowerSmart is being introduced to make the way people pay for their electricity fairer for the majority customers. Reducing electricity consumption during times of peak demand will help make future investment in expensive, new infrastructure more efficient. This is designed to help keep electricity prices down in the future. Federal and state governments have committed to installing 'smart' meters to electricity customers around Australia in the years ahead. The amount of money EnergyAustralia collects from customers through electricity bills is regulated by bodies including the Independent Pricing and Regulatory Tribunal of NSW. The aim is to better manage the spiralling cost of new infrastructure in the future and pass on the savings to customers through comparatively lower bills. Back to Top 5. Will a new electricity meter be installed? Yes, a new 'smart' meter that measures your electricity consumption in half hour periods will be installed at your premises free of charge, but there will be small interruption to your service. Your new meter might already be installed at your premises ready to change over to the PowerSmart Home rates. Back to Top

6. Will I have to turn off my electrical appliances? No, you won’t. You simply have an opportunity to minimise your electricity costs by shifting some of your peak usage into shoulder or off-peak periods. In moving to this new system, EnergyAustralia understands electricity customers want to be able to continue with household activities like heating and cooling, cooking, watching tv, using their computer and taking a bath when they want, while continuing to receive an affordable electricity bill. Back to Top

7. Does this affect my existing Controlled Load (Off Peak 1 or Off Peak 2)? The most common use for Off Peak 1 and Off Peak 2 is hot water. This is not affected because it is separately metered and will continue to be charged at Controlled Load rates. Back to Top

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