Flexible Pricing
Flexible Pricing
Smart Meters enable new types of electricity rates based on the time electricity is used. In 2013, what’s known as ‘time-of-use’ or flexible pricing will become more widely available to consumers on a voluntary basis. Customers will be able to choose between staying on a flat rate or moving to flexible pricing.
Customers will be able to choose between staying on a flat rate or moving to flexible pricing.
About flexible pricing
Smart Meters enable new pricing based on when electricity is used during the day, week or year.
These different rates provide customers with opportunities to save if they are able to shift electricity consumption to cheaper times.
Once available, different electricity companies are expected to offer different rates, with different time segments and seasonal rates.
Flexible pricing is designed to encourage people to use power at times when there is lower demand, reducing strain on the system and overall power infrastructure costs for the community.
What this means for you
When coupled with interactive devices such as web portals and in-home displays, flexible pricing will provide consumers with an opportunity to better manage their power bills.
These interactive devices, expected to become available in 2012, will mean consumers can access details about their electricity usage patterns allowing them to make accurate and informed comparisons of new flexible pricing offers.
Flexible pricing will be optional – customers may choose to remain on a flat rate.
When it will be available
The Victorian Government has reached an agreement with the electricity distributors to delay the widespread introduction of flexible pricing rates until 2013. This ensures that before such offers are widely available, consumers have the right tools in place to make informed energy choices. Tools like web-portals and in-home displays will allow customers to make comparisons of any new pricing options.
Throughout 2012, the Victorian Government will also fully assess customer impacts and make any necessary changes to consumer protections to provide the best opportunity for households and businesses to benefit from flexible pricing.
