Demand management FAQs

Below you will find some answers to your most frequently asked questions about demand management in South Australia.

What is demand management?  Return To Top

Demand management, as its name suggests, is a way of managing when and how much electricity is used by industrial, commercial, and residential consumers, specifically on days of peak demand. ETSA Utilities is leading the industry in Australia with our research into, and rigorous cost benefits analysis of, demand management options and technologies.

How does demand management work?  Return To Top

For industrial and commercial customers such as foundries, factories, shopping centres, and office buildings, ETSA Utilities continues to research a series of targeted options. These can include contracts where customers agree to use less electricity in hours of peak demand, or change employee hours so negligible power is used during such periods.

Reductions in electricity charges are available to customers who agree to use demand management in their premises. These vary with the type of contract negotiated, which could include how much advance warning a customer would require.

For residential customers, the main strategy being trialled is the installation of a small device on a refrigerated air conditioner which can be remotely activated so that it switches off the unit's compressor but not its fan (to ensure customer comfort is maintained).

Air conditioners already switch off their compressors regularly when they reach a desired temperature setting. This is called 'cycling'. Demand management simply increases the number of times in an hour that a compressor cycles.

Demand management can be implemented without changing a home's comfort levels as technology is now so sophisticated and precise.

When would it be used in South Australia?  Return To Top

The optimal time to use demand management would be during the few extremely hot days of a South Australian summer, typically around six to nine days each year. On these days, for some hours between 3pm and 8pm, South Australia's electricity demand peaks from its average demand to such a height that our State has the 'peakiest' demand in Australia, and one of the worst in the world.

Some interesting facts:

  • South Australia's average demand for power is less than half its peak demand.
  • The average use of electricity in older homes is just 35% of their peak demand.
  • The average use of electricity in homes in newer sub-divisions is just 21% of their peak demand.

These disturbing figures mean that South Australians pay for infrastructure to be in place to meet a peak demand that occurs less than two percent of the year.

Why use demand management rather than building more infrastructure to meet increased demand?  Return To Top

It is true that the simplest way is indeed to keep building infrastructure to support increased demand. However we believe that as the current infrastructure is only used to capacity for a very few days each year, it makes no business sense to keep building infrastructure to satisfy such a short-term high demand each summer. Therefore we explore all available options before making any decision to upgrade or build infrastructure.

Why now?  Return To Top

The Essential Service Commission of South Australia (ESCOSA) has been committed to looking at all possible solutions to SA's problematic few days of peak demand each summer.

Also ETSA Utilities is obliged by the terms of its licence to ensure network demand can be met. We are committed to exploring all avenues to ensure this occurs.

Demand management technology is becoming more and more sophisticated and also increasingly able to be integrated into the network. The timing is right to make concerted efforts to embrace residential and industrial demand management where it has a demonstrated cost benefit.

What does it mean for me if I am an industrial or commercial customer?  Return To Top

We actively seek demand management agreements with industrial and commercial customers. If you are interested in partnering with us, please contact Joe Caruso on 8404 5614.

Your options could include, but would not be limited to:

  • an agreement to shut off a level of power on request from us with different discounts available depending on how much advance warning you would require
  • an agreement to move your main hours of operation to earlier or later in the day on days of peak demand
  • an agreement to substitute your electricity source during peak hours, ie the use of an in-house generator.

What does it mean for me if I am a residential customer?  Return To Top

Currently all involvement in residential demand management programs in the State is voluntary. We approach customers as required in specific areas to become volunteer households.

However, any customer replacing their refrigerated air conditioner can now request to purchase one that is termed AS4755 compliant. This new Australian Standard is currently voluntary but will gradually ensure all new air conditioners sold in Australia are demand management ready, should a household decide to join a demand management program.