Integral Energy to penalise air conditioning


Arising from regulatory determinations, Integral Energy has introduced
an “inclining block tariff”. This involves restructuring the main
tariff from a flat “any-time” rate to a two-part tariff, with the
second block charged at a higher rate than for the first block.

Network becoming strained: Integral says this tariff reform
began the process of establishing a price signal related to electricity
consumption. “Our analysis shows that rapid growth in the use of
air-conditioning places an increased strain on our network, but these
costs are shared amongst all customers. Over the last 18 months we have
strongly advocated the need for tariff reform as a means of providing a
price signal to customers based on their consumption and usage

Differential will increase: Integral argues that customers with
air-conditioning are typically its largest consumers who, under the new
tariff structure, will pay a slightly higher cost for their higher
demand over time. “Based on customer reaction, and the potential for
demand management benefits, we intend to progressively increase the
price differential between the blocks.”

DM program launched at Castle Hill: Integral Energy has also
launched an Australian first Demand Management (DM) program at the busy
Castle Hill commercial centre in March, in partnership with the NSW
Government’s Sustainable Energy Development Authority (SEDA). The
program is designed to cut peak load on Castle Hill infrastructure and
delay the need for costly network upgrades.

Greenhouse savings: It says: “With commitment from leading
retailers at Castle Towers, and the potential for more to join, the
program will also deliver significant reductions in greenhouse gas

Reference: Integral Energy Annual Performance Report 2004, 51
Huntingwood Drive, Huntingwood NSW 2148, PO Box 6366, Blacktown NSW
2148, ph: (02) 9853 6666, fax: (02) 9853 6000, email: website:

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