Energex has released its draft Annual Pricing Proposal for 2015-16. This proposal contains network tariffs for the 2015-16 financial year. A copy of the full proposal can be viewed on the AER’s website here.
Based on the draft tariffs, small business customers in the Energex territory can look forward to some welcome relief from rising energy costs. Energex network charges for small business sites are estimated to decrease by between 4% and 9%, with customers on the Business Flat tariff enjoying the biggest savings.
However, the news is not so good for larger Energex customers connected to a demand based network tariff. As of 1 July 2015, demand charges for these customers will take account of the reactive power supplied to the site. As a result, customers with a poor power factor will experience a significant increase in their network charges. For customers on the Demand Small tariff, these increases could be as high as 20%.
Customers with a poor power factor should assess the merits of installing a power factor correction (PFC) system to mitigate against these cost increases. Depending upon the energy usage and demand characteristics of the site the payback on PFC systems can be as short as 12 months.
Click here for a more complete analysis of the specific impact of these tariff changes on your business.
Click here for further information on power factor and power factor correction.
For advice on the impact of these changes, contact e4b on 1800 781 791 or email us.