![\"demand](\"https:\/\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2016\/08\/DemandTariff.jpg\")
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Electricity companies around Australia are starting to roll out a new way to charge you for electricity. It is called a residential demand tariff.<\/p>\n
Unsurprisingly\u00a0this new tariff can result in higher bills for you, and higher profits for them.<\/p>\n
This post is important. It will explain to you what a demand tariff is, how it works, and why many households should avoid it at all costs.<\/p>\n
The electricity companies want to make demand tariffs the norm, so you must\u00a0be armed with the knowledge to spot one when you see one, and understand the implications of signing up for one.<\/p>\n
At the start of this century electricity bigwigs expected grid demand \u00a0to continue to grow, just as it had for decades. \u00a0Instead, electricity consumption peaked and then declined.\u00a0 This came as a shock to the electricity sector which had spent billions of dollars expanding transmission and distribution infrastructure that was now not needed.<\/p>\n
Because the regulators allowed them\u00a0to pass on the costs of their bad investments to consumers, electricity prices soared and many Australians turned to solar to ease the pain of their skyrocketing electricity bills.<\/p>\n
Rather than admit their mistakes\u00a0and attempt to adapt to the new situation electricity\u00a0 generators, distributors, and retailers have instead relentlessly lobbied to\u00a0make it difficult for\u00a0you\u00a0to install solar.<\/p>\n
Successfull campaigns include:<\/p>\n
They have also continuously attempted to impose fees and charges on\u00a0solar\u00a0homes which, thankfully regulators rejected.<\/p>\n
So the energy cartel found another\u00a0way to discourage rooftop solar. It’s called a\u00a0residential demand tariff.<\/p>\n
On August\u00a01 2016 they became available in South Australia:<\/span><\/p>\n