What is a demand tariff?

What is a Demand Tariff?

A demand tariff is a type of energy pricing structure designed by energy distributors to encourage households and businesses to use less electricity during peak demand times - when there is more pressure than usual on the energy grid. To be eligible for energy plans with demand charges, a smart meter is required.

Who decides if I’m on a demand tariff?

Typically, it is the distributor who will put customers on a demand tariff, but you can choose to opt-in or opt-out to save money on your bills. Each distributor may design their demand tariff differently, but it usually consists of a demand charge based on the customer's maximum electricity demand on the network during peak times.

Can I opt out of a demand tariff?

Residential customers on a demand tariff can request to be allocated to a different tariff, but this is subject to availability and the distributor's policies at the time. Small and large businesses, however, may not have the option to opt-out of a demand tariff, depending on their location and the distributor.

Visit the Australian Energy Regulator’s site or check your Pacific Blue bill if you are unsure who your energy distributor is.


Ausnet Services




United Energy

New South Wales


Endeavour Energy

Essential Energy: Customers must opt-in to access demand tariffs, and they must have an interval or smart meter. View their Demand Tariff Brochure to learn more.

South Australia

SA Power Networks


Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request