What is a Demand Tariff?

What is a Demand Tariff?

Demand tariffs have been designed by energy distributors to encourage households and businesses to use less electricity during peak demand times (more pressure on the energy grid).

A smart meter is required to be eligible for energy plans with demand charges.

Who decides if I’m on a demand tariff?

Normally, it is your distributor who will put you on a demand tariff. You can choose to opt-in or out to save money on your bills.

Demand tariffs are designed to encourage households and businesses to use less electricity during peak times. Each distributor may design their demand tariff differently. Demand tariffs usually consist of a demand charge based on your maximum electricity demand on the network at peak times

Can I opt out of a demand tariff?

Residential customers on a demand tariff from their retailer can request to be allocated to a different tariff. This is subject to availability and what the distributor will allow at the time.

In most cases, small and large businesses cannot opt-out of a demand tariff. This is dependent on the business location and distributor.

For further information on demand tariffs, refer to your energy distributors site listed below.

If you don’t know who your energy distributor is, check out page 2 of your recent Tango Energy Bill or visit the Australian Energy Regulator’s site.


Ausnet Services




United Energy

New South Wales


Endeavour Energy

Essential Energy: Demand tariffs can only be accessed on an opt-in basis for customers who have an interval or smart meter. Refer to their Demand Tariff Brochure for more information.

South Australia

SA Power Networks


Was this article helpful?

1 out of 36 found this helpful

Have more questions? Submit a request