Commercial

Your Business Is On kVA-Demand Tariffs: What Now?

By in Commercial

If your business uses more than 100 MWh a year, chances are you’re on a kVA-demand tariff. We take a look at what this means for Brisbane business owners and share one simple solution that could save you hundreds, if not thousands, of dollars!

What are kVA-Demand Tariffs?

Electrical equipment are all different and require different levels of power throughout the day. For example, a shopping centre might experience a surge in power use during peak periods and the centre’s air conditioning has to work harder to keep everyone cool. This peak power usage is often called your total power or your ‘demand’.

On a demand tariff, you’re charged:

  • The total amount of electricity you use, measured in kilowatt hours (kWh).
  • The maximum demand (or peak power) that is supplied to your premises within any one 30 minute period as KVA (used and wasted power)
  • Service fees and metering charges.

One way to think of demand tariffs is like going on a road trip. One charge is for the total distance you have travelled (or your electricity usage) and another charge is for the fastest speed you reached during your trip (or your peak demand). Of course, what would a road trip be without snacks and obligatory gas stops? So you better budget for additional costs like service fees and metering charges.

 

Saving money with Power Factor Correction

The good news is that the more efficiently you use your electricity, the more you’ll be able to reduce your demand charges. By changing your consumption patterns and installing a Power Factor Correction unit, you can stop your electricity supplier from supplying you with extra electricity you don’t use in your off-peak hours.

A Power Factor Correction unit can help you reduce your electricity expenses by 10-30% and make massive monthly savings off your demand charge. Other benefits include adding value to your business premises, improving the facilities, receiving financial incentives from energy companies, and reducing your carbon footprint.

In many cases, the payback time of purchasing Power Factor Correction equipment is estimated to be within 12 months. So you can also gain a competitive advantage really quickly and use your savings to reinvest in your staff, production and marketing team.

Brisbane businesses that would benefit from Power Factor Correction include but are not limited to:

  • Manufacturing plants and fabricator
  • Cold-storage businesses
  • Shopping centres and warehouses
  • Construction sites and large-scale builders
  • Distribution companies
  • Retail stores, restaurants and theme parks
  • Hotels and motels

 

The solution is simple!

Installing a Power Factor Correction unit is easy. All you need to do is book your free assessment with an Allied Power Factor representative, analyse our report, and calculate your savings.

If you’re happy with the results, we’ll install a Power Factor Correction unit and you’ll be laughing! Stop paying for power you’re not even using, and call Allied on 1300 650 114, or send us an online enquiry today to find out how much money you could be saving.