Network Tariff Guide for

Standard Control Services

1 July 2018 to 30 June 2019

Revision history

Version Date Summary of changes

1.0 1 July 2018 Initial 2018–19 Network Tariff Guide.

2018–19 Network Tariff Guide v1.0 page 2

Contents
1. Introduction .......................................................................................................................................... 4

1.1 Overview ........................................................................................................................................ 4

1.2 Purpose ......................................................................................................................................... 5
1.3 Supporting network pricing documents ......................................................................................... 6
2. Understanding network tariffs ........................................................................................................... 8

2.1 Network tariffs ................................................................................................................................ 8

2.2 Key concepts in tariff design.......................................................................................................... 9
2.3 Network tariff changes ................................................................................................................. 12
Appendix 1: Statement of tariff classes and tariffs .............................................................................. 13

Appendix 2: Ergon Energy’s IBT network tariff calculation methodology ......................................... 36

Appendix 3: CAC connection unit charge examples ............................................................................ 39

Appendix 4: Seasonal TOU Demand (STOUD) calculation examples ................................................. 41

Appendix 5: Ergon Energy’s Excess kVAr calculation methodology ................................................. 44

Appendix 6: Ergon Energy’s kVA calculation methodology ................................................................ 45

Appendix 7: DUOS locational zones ...................................................................................................... 47

Appendix 8: TUOS regional indicators ................................................................................................... 49

Appendix 9: Eligible apparatus for controlled load network tariffs .................................................... 51

Glossary ..................................................................................................................................................... 54

2018–19 Network Tariff Guide v1.0 page 3

1. Introduction

1.1 Overview
On 30 June 2016, Ergon Energy Corporation Limited (Ergon Energy) became a subsidiary of Energy
Queensland Limited which is the holding company for both Energex and Ergon Energy. Ergon
Energy is a Distribution Network Service Provider (DNSP) to around 730,000 customers in regional
Queensland. Our service area covers around 97 per cent of Queensland and has approximately
160,000 kilometres of power lines and one million power poles. Around 70 per cent of our network’s
power lines are radial and service mostly rural areas with very low levels of customers per line
kilometre.

Ergon Energy provides a number of different services. The Australian Energy Regulator (AER)
decides how these services are classified and how they are regulated in its Distribution Determination.
This is important as it determines how prices are set and how charges are recovered from our
customers.

For the 2015 to 2020 period, many of our services are classified as Direct Control Services. These
services are subject to direct regulatory oversight by the AER, through price or revenue setting. Direct
Control Services are further classified into Standard Control Services and Alternative Control Services.
Standard Control Services are core distribution services associated with the access and supply of
electricity to customers. They include network services (e.g. construction, maintenance and repair of
the network), some connection services (e.g. small customer connections) and Type 7 metering
services. We recover our costs in providing Standard Control Services through network tariffs billed to
retailers.
Alternative Control Services are comprised of:

 Fee based services – one-off distribution services that we undertake at the request of an
identifiable customer, retailer or appropriate third party which are levied as a separate charge, in
addition to our Standard Control Services. These services are priced on a ‘fixed fee’ basis as the
costs of providing the service (and therefore price) can be assessed in advance of the service
being requested.

Examples of fee based services include temporary connections, de-energisations, re-

energisations and supply abolishment.
 Quoted services – similar to fee based services, but they are ‘priced on application’ as the nature
and scope of these services are variable and the costs (and therefore price) are specific to the
individual requestor’s needs (e.g. design and construction of connection assets for major
customers, real estate development connections and special meter reads etc.).
 Default Metering Services – relate to:

o Type 5 and 6 meter installation and provision (before 1 July 2015)

o Type 5 and 6 meter installation and provision (on or after 1 July 2015), where the
replacement meter is initiated by Ergon Energy as a DNSP
o Type 5 and 6 metering maintenance, reading and data services.

Ergon Energy recovers our costs of providing Default Metering Services through daily capital and
non-capital charges based on the number and type of meters we provide the customer. These
charges are billed to retailers.

It should be noted that the AEMC’s recommendations in the Power of choice review was
implemented in Queensland on 1 December 2017. Under these new arrangements, we are no

2018–19 Network Tariff Guide v1.0 page 4

 1
longer responsible for providing metering installations as they are subject to contestability . We
are only able to provide metering services to existing regulated meters as long as they are in
operation. As a result, on 1 December 2017, a number of Alternative Control Services were either
discontinued or had the metering provision component separated from the service with the
remaining service components covering the services still performed by Ergon Energy.
 Public Lighting Services – relate to the provision, construction and maintenance of public lighting
assets owned by Ergon Energy, and emerging public lighting technology. We recover our costs of
providing Public Lighting Services through a daily public lighting charge billed to retailers. We also
charge a one-off exit fee, when a customer requests the replacement of an existing public light for
2
a light emitting diode (LED) luminaire before the end of its useful operational life.
3
We also pass on transmission-related costs and jurisdictional scheme amounts to customers.

1.2 Purpose
This Tariff Guide sets out the network tariffs that apply in 2018-19, as well as the application rules.
It is structured as follows:
Section Description
Chapter 1  Provides an overview of our Tariff Guide and our other supporting network pricing
documents

Chapter 2  Outlines what network tariffs are and key pricing concepts

 Summarises changes that apply to our network tariffs in 2018-19

Appendix 1  Provides a website link to the Ergon Energy 2018–19 SCS Network Tariffs
spreadsheet. This spreadsheet sets out our tariff classes, network tariffs applicable to
each class and the associated Network Tariff Codes and rates (GST exclusive)

 Outlines the process for obtaining site specific rates and other information

 Sets out explanatory notes on the application of our network tariffs, including tariff
conditions

 Includes information on TUOS regional indicators and Distribution Loss Factors (DLFs)

 Outlines Network Tariff Codes applicable to micro-embedded generator units and

information on the Queensland Government’s Solar Bonus Scheme (SBS)

Appendix 2  Outlines the methodology used by Ergon Energy to calculate our Inclining Block Tariff
(IBT) network tariffs for Standard Asset Customers (SAC) Small and provides
illustrative examples

Appendix 3  Provides examples of the connection unit charge

Appendix 4  Provides examples of how the Seasonal Time-of-Use Demand (STOUD) tariffs are
calculated for different user groups

Appendix 5  Provides an example of how the excess reactive power charge is applied

Appendix 6  Details the kVA methodology used to calculate tariffs for Individually Calculated
Customers (ICCs) and Connection Asset Customers (CACs)

1
We remain responsible for metering in our Mount Isa-Cloncurry and Isolated supply networks.
2
Outside of our LED transition program.
3
Jurisdictional scheme charges are set to zero from 1 July 2017, following the Queensland Government’s direction not to pass
on these charges in our network tariffs until 2020. Refer to Section 2.1.3 for further details.

2018–19 Network Tariff Guide v1.0 page 5

 Section Description
Appendix 7  Outlines a mapping of our DUOS locational zones to Queensland local government
areas (LGAs)

Appendix 8  Lists the Transmission Connection Points (TCPs), their assigned Transmission Node
Identifier (TNI) and geographical Transmission Use of System (TUOS) Region

Appendix 9  Describes the apparatus that is eligible to be connected to controlled load network
tariffs

1.3 Supporting network pricing documents

In addition to this Tariff Guide, Ergon Energy has a number of network pricing documents to assist
network users, retailers and interested parties understand the development and application of network
tariffs, Alternative Control Services prices and connection charges. These documents are outlined in
Figure 1.1 below and are available on Ergon Energy’s website at:

https://www.ergon.com.au/network/network-management/network-pricing.

2018–19 Network Tariff Guide v1.0 page 6

Figure 1.1: Supporting network pricing documentation

• Sets out the proposed tariff structures for the 2017 to 2020 period
• Details how the proposed tariff structures comply with the pricing principles
Tariff Structure Statement • Describes the tariff-setting process for Standard and Alternative Control Services
• Provides details on the assignment of customers to tariff classes and tariffs
• Approved by the AER in February 2017, following stakeholder consultation

• Provides how Ergon Energy's tariff classes, tariffs and tariff structures for our Standard
Control Services and Alternative Control Services in compliance with the requirements
Pricing Proposal set out in Chapter 6 of the NER, the AER's Distribution Determination and our TSS.
• Provides indicative prices for 2019-20
• Submitted to the AER annually

• Provides Ergon Energy's prices for our Standard Control Services and Alternative Control
Services developed in accordance with requirements set out in Chapter 6 of the NER, the
2018-19 Network Tariff AER's Distribution Determination and our TSS.
Tables • Submitted to the AER annually as part of the Pricing Proposal.
• Referred as to Attachment 1 of the Pricing Proposal

Information Guide for • Sets ot the basis upon which Ergon Energy's revenue cap for Standard Control Services
is recovered from various customer groups through network tariffs.
Standard Control Services • Provides a description of the network tariffs
Pricing • Published annually

• Provide an introduction to the current network tariffs for each customer group
User Guides • Published annually, and updated as required

• An operational document for customers, retailers and consultants, setting out the
Network Tariff Codes and application rules and rates for each Network Tariff Code
Network Tariff Guide • Applies to network users connected to Ergon Energy's regulated distribution network
• Published annually, and updates as required

Price List for Alternative • Sets out Ergon Energy's Alternative Control Services and the prices that apply for fee
based services, Default Metering Services and Public Lighting Services
Control Services • Published annually, and updated as required

• Sets out when a connection charge may be payable by retail customers or real estate
developers and the aspects of the connection service for which a charge may be applied
Connection Policy • Details how Ergon Energy calculates the capital contribution to be paid
• Approved by the AERin 2015 as part of the Distribution Determination

2018–19 Network Tariff Guide v1.0 page 7

2. Understanding network tariffs

2.1 Network tariffs

Network tariffs are comprised of:

 Distribution Use of System (DUOS) charges

 TUOS charges

 Jurisdictional scheme charges.

2.1.1 DUOS
The DUOS component recovers costs associated with some connection services and/or use of the
distribution network for the conveyance of electricity (i.e. Standard Control Services).

Ergon Energy’s Standard Control Services are regulated under a revenue cap form of price control.
The revenue cap (or ‘Total Annual Revenue’) for any given year reflects Ergon Energy’s smoothed
revenue requirement (as determined by the AER), plus other annual revenue adjustments.

The revenue cap is assigned to the three pricing zones and the zonal costs are apportioned to
different asset categories within each zone. The costs within the zones are then assigned to the four
network user groups and converted into network tariffs that recover the costs.
Further information on the tariff-setting process is available in our Information Guide for Standard
Control Services Pricing.

2.1.2 TUOS

Ergon Energy is able to recover transmission-related costs associated with:

 the use of Powerlink’s transmission network to deliver high voltage electricity from generators to
our network

 avoided TUOS charges paid to eligible Embedded Generators (EGs)

4

 payments made to other DNSPs for the supply of distribution services. For Ergon Energy, this
includes our connection to Energex Limited’s network at Postman’s Ridge.
Attachment 14 of the Distribution Determination also allows us to pass through:

 charges levied on Ergon Energy for use of the 220 kV network which supplies the Cloncurry
network in our Mount Isa Zone
 entry and exit services charged by Powerlink at three connection points – Stoney Creek, Kings
Creek and Oakey Town.

These costs are recovered from customers through TUOS charges.

2.1.3 Jurisdictional scheme

Jurisdictional schemes are certain programs implemented by state governments that place legislative
obligations on DNSPs. For Queensland, this includes:
 the SBS, which obligates Ergon Energy to pay a feed-in tariff (FiT) for energy supplied into our
distribution network from specific micro-embedded generators
4
Ergon Energy makes Avoided TUOS payments to EGs that have sought access to Ergon Energy’s distribution network under
clause 5.5 of the NER, and who meet other requirements set out in our Information Guide for Standard Control Services Pricing
( www.ergon.com.au/network/network-management/network-pricing)

2018–19 Network Tariff Guide v1.0 page 8

 the energy industry levy. Ergon Energy is obligated under our Distribution Authority to pay a
proportion of the Queensland Government’s funding commitments for the Australian Energy
Market Commission in relation to this levy.

Under the National Electricity Rules (NER) and Distribution Determination, Ergon Energy is able to
recover jurisdictional scheme amounts from customers. This is done via separate ‘jurisdictional
scheme charges’.

However, on 31 May 2017 Ergon Energy received a direction from the Queensland Government not to
pass on AER-approved jurisdictional scheme charges to customers in our network tariffs. The
Queensland Government will instead subsidise the cost of the scheme until 2020. Consequently, since
1 July 2017, the jurisdictional scheme rates in Ergon Energy’s network tariffs have been set to zero.

2.2 Key concepts in tariff design

There are a number of pricing concepts mentioned in this Tariff Guide. To assist understanding, we
have explained these concepts below.

2.2.1 Tariff classes

We have a wide diversity of customers, in terms of their size, location, and usage patterns. We group
our customers according to these characteristics. Tariff classes therefore refer to a group of
customers with similar characteristics.

Ergon Energy has 18 tariff classes for Standard Control Service customers. These tariff classes are
differentiated by customer groups and locational zones as shown in
Table 2.1 below:

Table 2.1: Ergon Energy's Standard Control Service tariff classes

Customer group East Zone West Zone Mount Isa Zone

ICC   
CAC   
EG   
SAC Large   
SAC Small   
SAC Unmetered   

Definitions associated with each customer group are outlined in the Glossary. A mapping of Ergon
Energy’s locational zones to local government areas (LGAs) is contained in Appendix 7.

2.2.2 Tariffs, charges and charging parameters

A tariff represents the combination of charges that Ergon Energy applies to a customer (through their
retailer) in order to recover network costs. Within each tariff class a number of tariffs can be offered.

Tariffs have three key defining characteristics:

 the charge (can also be called ‘charging component’, ‘tariff component’ or ‘tariff element’)
 the parameters of the charge (specific characteristics that relate to the charge that influence how it
is calculated)

 the rate applied to each charge.

2018–19 Network Tariff Guide v1.0 page 9

Each tariff has at least one charge, but usually has more than one. There are a number of charges
(e.g. fixed charge) and charging parameters (e.g. dollars per day) for our Standard Control Services.
Charges and charging parameters are applied differently for each tariff class. Each charge and
charging parameter is selected and structured to provide signals to network users about the efficient
use of the network.

Other charges and charging parameters apply to the TUOS and jurisdictional scheme components of
the network tariff.

A detailed explanation of the charges and charging parameters applying to each network tariff is
provided in Appendix 1.

The Ergon Energy 2018–19 SCS Network Tariffs spreadsheet sets out the rates that apply to each
charge.

2.2.3 Mandatory, opt-in and opt-out tariffs

Tariffs can be either ‘mandatory’, ‘opt-out’ or ‘opt-in’ for particular customers. An explanation of each
of these is set out below:

 Mandatory tariffs – are the only tariffs available for particular customers or particular classes of
customers, and there may be no other tariff option to choose from. For example, theoretically, a
new customer with a smart meter may be assigned to a demand based tariff, and have no option
to switch to another tariff. While an existing customer with a basic meter may be automatically
assigned to energy based tariff but may choose to switch to the demand based tariff (i.e. with new
metering installed). Another example of a mandatory tariff is for unmetered supplies within our
network (e.g. public lighting, traffic lights). This class of customer can only access our unmetered
supply network tariff.

 Opt-out tariffs – are assigned to customer’s by default, but customers may voluntarily choose to be
re-assigned to a different tariff. For example residential customers are automatically assigned to
our residential inclining block network tariff, but they could choose to switch to a time-of-use tariff.

 Opt-in tariffs – are tariffs the customer can choose to be reassigned to, instead of the default tariff
they would otherwise be assigned to. This is the opposite of an opt-out tariff. For example in the
previous example the time-of-use tariff would be described as the opt-in-tariff.
An indication of whether our network tariffs are mandatory, opt-in or opt-out is included in Appendix 1.

2.2.4 Primary and secondary tariffs

For some tariff classes, customers may be able to access a secondary tariff in addition to their primary
tariff at the premises. These tariffs are explained further below:

 Primary tariffs – are tariffs capable of applying to the entire load or the majority of the load at a
customer’s premises. For example – as a primary tariff, residential customers have the option of
an inclining block, seasonal time-of-use demand or seasonal time-of-use energy network tariff.

 Secondary tariffs – can generally only be accessed in conjunction with a primary tariff. For
example, a residential customer, in addition to their primary tariff, may elect to have some
appliances (e.g. hot water system) subject to a secondary “controlled load” network tariff.

Appendix 1 provides further detail on secondary tariffs that customers can access, including the
associated tariff conditions.

2.2.5 Network Tariff Codes

Network Tariff Codes are alpha-numeric descriptors used to identify a particular network tariff. In
general, each Network Tariff Code has three components:

2018–19 Network Tariff Guide v1.0 page 10

 a pricing zone code (e.g. “E” represents the East Zone)

 a tariff code (e.g. “BIB” represents the IBT Business tariff)

 a Transmission Region code (e.g. “T1” represents TUOS Region 1).

For example, “EBIBT1” refers to the East Business Inclining Block – TUOS Region 1 network tariff.

For SAC network tariffs an additional component code may apply (e.g. “C”, “X” or “B”). These
additional series of Network Tariff Codes have been developed to enable the billing of the Alternative
Control Services daily capital and non-capital metering charges (i.e. Default Metering Services), as
shown in Table 2.2 below. For example, “EBIBXT1” refers to the East Business Inclining Block –
TUOS Region 1 network tariff, where daily capital metering charges also apply.

Table 2.2: Tariff series for SAC network tariffs

Network Tariff
Tariff series Daily metering charges
Code example
Capital Non-capital

Standard EBIBT1  
‘C’ series EBIBCT1  
‘X’ series EBIBXT1  
‘B’ series EBIBBT1  

For SAC unmetered tariffs, an additional ‘MI’ and ‘MA’ alpha-numerical component may apply. This
component identifies minor and major public lighting installations that Ergon Energy is responsible for
operating and maintaining (i.e. Alternative Control Services Public Lighting Services). For example,
“EVUMIT1” refers to the East Volume Unmetered – TUOS Region 1 network tariff, for a minor public
light.

Further information on the application of Default Metering Services charges and Public Lighting
Services charges is set out in our Price List for Alternative Control Services.

A complete listing of our Network Tariff Codes is provided on the ‘List of Network Tariff Codes’ tab in
the Ergon Energy 2018–19 SCS Network Tariffs spreadsheet.

2018–19 Network Tariff Guide v1.0 page 11

2.3 Network tariff changes
Ergon Energy has introduced a number of changes to our network tariffs for Standard Control
Services in 2018-19. The main change includes the introduction of an innovative residential time-of-
use tariff, the Lifestyle tariff, and other changes summarised below. Further detail on the 2018-19
changes is set out in our AER-approved Pricing Proposal.

Table 2.3: Summary of network tariff changes in 2018-19

Network user group Tariff changes

ICC  Consistent with our TSS, no changes are proposed to ICC tariffs in 2018-19

CAC  As outlined in our 2017-18 Pricing Proposal and consistent with the approach
foreshadowed in our TSS, since 1 March 2018 new CAC premise connections
default to the STOUD where no network tariff has been advised to Ergon Energy.
Customers wishing to opt-out of this arrangement can either request an initial
assignment or re-assignment to one of our other standardised CAC tariffs. In
2018-19, there are no further changes to CAC tariffs.

SAC Large  Consistent with the approach applied to CACs, from 1 March 2018, any new SAC
Large premises connections default to the STOUD tariff where no network tariff
has been advised to Ergon Energy. Customers wishing to opt out of this
arrangement can either request an initial assignment or a re-assignment to the
SAC Large anytime demand tariffs through their retailer. In 2018-19, there are no
further changes to SAC Large customers.

SAC Small  To inform the development of our forthcoming 2020-25 TSS, we introduced a new
cost reflective network tariff, Lifestyle tariff, to be offered to retail customers
subject to the limitations of the threshold tariff provisions set out in clause 6.18.1C
of the NER. This innovative tariff is a departure from conventional demand-based
tariffs currently offered in the NEM. This small scale tariff offering will enable us
and retailers to market test the tariff during the current 2017-20 TSS period.

EG  In our TSS, we foreshadowed that we would be considering introducing

standardised rates for EG tariffs if the volume of new connections makes it
impractical for us to continue site-specific pricing.

 In 2018-19, we have not introduced standardised rates for EGs. However, we will
continue to monitor this during the year, and to the extent necessary, develop
standardised rates for future Pricing Proposals.

2018–19 Network Tariff Guide v1.0 page 12

Appendix 1: Statement of tariff classes and tariffs

Consistent with clause 6.18.9 of the NER, this appendix, together with the Ergon Energy 2018–19
SCS Network Tariffs spreadsheet forms our statement of tariff classes and tariffs for our Standard
Control Services for 2018-19.

1. Published rates
The 2018–19 network tariff rates for our Standard Control Services have been published in a separate
spreadsheet, Ergon Energy 2018–19 SCS Network Tariffs, which is available with this Tariff Guide on
our website:

www.ergon.com.au/network/network-management/network-pricing/network-tariffs.

Only network tariffs with standardised rates have been published in the Ergon Energy 2018–19 SCS
Network Tariffs spreadsheet.

As discussed in Chapter 2, our network tariffs consist of three components – DUOS charges, TUOS
charges and jurisdictional scheme charges. In the Ergon Energy 2018–19 SCS Network Tariffs
spreadsheet each component is presented separately. For each tariff, the total network charges (or
NUOS charges) is determined by combining the relevant DUOS, TUOS and jurisdictional scheme
charges.

As outlined in Chapter 2, for SAC network tariffs, a number of additional series of Network Tariff
Codes have been developed to enable the billing of daily capital and non-capital metering charges (i.e.
Default Metering Services). The Ergon Energy 2018–19 SCS Network Tariffs spreadsheet contains
the relevant Alternative Control Services metering charges for these tariff classes. Additional
information on the application of Default Metering Services tariffs is available in the Price List for
Alternative Control Services.

2. Site specific rates

As per clause 6.19.2 of the NER, all information about a service applicant or distribution network user
used by a DNSP for the purposes of distribution service pricing is confidential information.

Therefore the publication of site specific network tariffs for ICCs and EGs, and site specific details for
CACs, would breach the NER and any connection agreements between Ergon Energy and our
customers. It may also adversely affect the markets in which our customers operate.

Information on site-specific Network Tariff Codes, rates, connection units and DLFs are available on
request by contacting Network Pricing ([email protected]). Ergon Energy will only release this
information in the following circumstances:

 the requestor is the customer, or an authorised person who is able to sign on behalf of the
customer (e.g. Company Manager)

 the requestor is the current Financially Responsible Market Participant and the request relates to a
period of time for which they are responsible for the site

 the customer’s written consent has been provided using the “Authority to Release Information to
Third Parties Form” available with this Tariff Guide on Ergon Energy’s website

2018–19 Network Tariff Guide v1.0 page 13

3. Procedures for assigning and reassigning customers to
tariffs and tariff classes
Appendix D of our TSS provides information on how customers are assigned or reassigned to network
tariffs and tariff classes for Standard Control Services, and the process retailers should follow if they
do not agree with an assignment or reassignment decision made by Ergon Energy. The TSS is
available on our website:

www.ergon.com.au/network/network-management/network-pricing/network-tariffs.
A listing of tariff classes and network tariffs applicable to each class is published in the Ergon Energy
2018–19 SCS Network Tariffs spreadsheet.

4. Customer or retailer initiated tariff changes

Customer or retailer initiated tariff changes can be requested for a variety of reasons. For example
where the customer wishes to ‘opt-in’ to a different tariff (instead of the default tariff applied to the
premises) or where there has been a takeover of an existing connection (change in tenancy).

Appendix D of our TSS outlines the business rules around network tariff changes, including the
effective date for changes and any restrictions around further requests to change a network tariff.

Generally, a customer (or their retailer) may request a change in network tariff once every 12 months
(subject to a change in usage or pattern of usage at the premises). Further requests to change a
network tariff assigned to a NMI should not be made until a period of 12 months has elapsed from the
previously approved request.
As noted in our TSS, backdating of charges prior to the applicable effective date is not allowed by
Ergon Energy.

Ergon Energy will inform the customer and /or retailer within five business days of receiving a tariff
change request, of the decision taken. A customer and/or retailer may appeal this decision. Further
information on the appeals process is set out in Appendix D of the TSS.

5. General requirements
The following general requirements apply to our network tariffs:

 Network tariffs are applied to the electricity used at the connection point, as measured by the
meter or meters at that connection point. While customers have the ability to request additional
meters to enable particular tariff arrangements, Ergon Energy will only create a new connection
point where we have a legislative right or obligation to do so.

 Network users with multiple network connections will pay network charges for each connection
point. This approach is consistent with the National Metering Identifier (NMI) Procedure issued by
the Australian Energy Market Operator.

 It is intended that a Network Tariff Code will apply to each meter data stream. In the case where a
NMI has multiple meters (and data streams), metering data may be aggregated to calculate
network charges. Ergon Energy’s Retailer Handbook provides further guidance on network billing
arrangements, including how network tariffs are applied to aggregated data streams.

 In some cases daily pro-rating will apply in the calculation and billing of charges (e.g. fixed
charges and demand charges). This document contains worked examples of the calculation of
charges for some of our network tariffs. Further information on network billing is contained within

2018–19 Network Tariff Guide v1.0 page 14

 the Queensland B2B Process Specification: Network Billing and Ergon Energy’s Retailer
Handbook.

 If a retailer does not specify its preferred network tariff (where multiple tariff options are available),
Ergon Energy will default the network tariff to what it considers to be the most appropriate tariff,
having regard to tariff conditions and opt-in and opt-out arrangements prevailing at the time.

 If there is a material change in connection, load or metering characteristics at a premise, such that
the current tariff(s) is no longer applicable, Ergon Energy may initiate a change to the customers’
tariff class and/or network tariff(s). This change will be undertaken in accordance with procedures
outlined in Appendix D of our TSS.

 5
If a network tariff is discontinued, redesignated or otherwise amended such that the tariff is no
longer available to a customer, Ergon Energy may initiate a change to the customer’s network
tariff. This change will also be undertaken in accordance with procedures outlined in Appendix D
of the TSS.

 Residential and Business classifications in our SAC Small network tariffs align with the customer
classifications notified to us by retailers in accordance with requirements under the National
Energy Retail Rules.
 If a customer classification is not received for a SAC Small NMI, the following will apply:

o For new connections, the IBT Business tariff will be the default primary tariff

o For move-in customers, the new customer will inherit the existing network tariff(s) and
customer classification

o If a retailer subsequently advises that the default classification applied to a SAC Small NMI
is to be changed (i.e. from Business to Residential), and the meter is required to be
reprogrammed to support the network tariff change, then the costs to undertake this work
will be the retailer’s responsibility.

 Ergon Energy’s network tariffs do not support a mixed tariff situation (for example, where one NMI
has both residential and business retail tariffs). The determination of the appropriate SAC small
network tariff will be based on the retailer’s classification of the NMI as either business or
residential in accordance with the National Energy Retail Rules.

 Where a retailer wants to access the network STOUE or STOUD tariff, and is offering a retail time-
of-use (TOU) tariff that differs in the peak, shoulder and off-peak times from the applicable
network TOU tariff, then this will be considered a special arrangement. The costs of this special
arrangement will be the retailer’s responsibility.

 Approval of apparatus to connect to controlled load network tariffs is at the absolute discretion of
Ergon Energy. Appendix 9 describes the apparatus that Ergon Energy generally accepts to
connect to controlled load.

 Where Ergon Energy’s load control equipment exists (including associated metering), this may not
be disconnected without Ergon Energy’s prior written consent.

 Where there is no connection agreement in place defining an ICC or CAC’s Authorised Demand
(AD), Ergon Energy will determine an AD value to apply in network tariff calculations. Generally
this will be based on the annual maximum demand in the previous full pricing period prior to the
setting of prices. Under certain circumstances, a more recent demand may be substituted (e.g.
where there has been a significant change in demand after the previous full pricing period).

5
For example, given a different name or Network Tariff Code

2018–19 Network Tariff Guide v1.0 page 15

 Where there is no connection agreement, or where the connection agreement defines a ICCs or
CACs Authorised Demand (AD) in kW, Ergon Energy will convert the AD to a kVA measure as
part of our annual price setting process. This conversion uses the lower of a compliant Power
factor (PF) or the customer’s PF as measured at the time of monthly maximum demand. Details
of the customer’s AD in kVA will be set out in the customer’s site-specific tariff schedule.

 6
For CACs that have a primary and alternate supply (as deemed by Ergon Energy), the AD will be
set to zero on the alternate supply NMI for the purpose of calculating TUOS capacity charges.
Ergon Energy will also waive the TUOS fixed charge on the alternate supply NMI.

 7
For EGs who also have an ICC or CAC classification, for the purposes of calculating network
charges for the load side (i.e. the ICC or CAC network tariff), we will set export kVAr to zero in any
interval when kW are imported into our distribution network. This adjustment has an impact on
total kVA and excess kVAr billing quantities. Further detail on Ergon Energy’s kVA calculation
methodology is set out in Appendix 6.

 DUOS locational zones are based on Queensland LGA’s. The location of the connection point is
the final determinant of which zone (and network tariff/s) will apply to a NMI. Further information
on Ergon Energy’s DUOS zones is set out in Appendix 7.
 The TNI identifies the Transmission Connection Point from which a customer is supplied. The
NMI Discovery process (Stage 2) will provide retailers with the TNI applicable to a NMI. Appendix
8 contains a mapping of TNIs to Ergon Energy TUOS zones.

6. Tariffs and tariff conditions

This section provides explanatory notes and tariff conditions applying to each of our network tariffs. It
is recommended this section be read in conjunction with published rates set out in Ergon Energy
2018–19 SCS Network Tariffs spreadsheet, or with the customer’s site specific tariff schedule.

6.1. SAC Small tariffs

For our small to medium business and residential customers, who use less than 100MWh of electricity
each year, we have a range of primary network tariffs:
 Inclining Block Tariff (IBT)

 Seasonal Time-of-Use Energy (STOUE)

 Seasonal Time-of-Use Demand (STOUD)

Many customers, in addition to the above primary tariffs, enter into arrangement with Ergon Energy
whereby some appliances are subject to secondary “controlled load” tariffs. Controlled load tariffs
allow us to curtail supply to designated circuits at a customer’s premises in return for a lower tariff.
We have two secondary controlled load network tariffs:

 Volume Controlled

 Volume Night Controlled

Our SAC small group also covers unmetered supplies such as public lighting, traffic lights, watchman
lights and other types of unmetered public amenities (e.g. illuminated signs, phone boxes and
barbeques etc.). Only one type of network tariff is available for this customer group:
 Volume Unmetered

6
Also referred to as back-up supply
7
Refer to definition of an ‘EG’ in the Glossary section of this document

2018–19 Network Tariff Guide v1.0 page 16

On 1 July 2018, we will offer a new residential tariff, Residential Lifestyle (Lifestyle Tariff) available to
residential customers in the East Zone with smart meters and consumption less than 100 MWh per
year. Access to this tariff is limited to a specified number of customers as the tariff is subject to the
8
threshold tariff provisions set out in the NER.

Further information on the application of charges and tariff conditions for our SAC Small tariffs is set
out in the table below.

Table A1.1: Application of tariff and charges - SAC Small

Application of tariff and charges – SAC Small

SAC Small primary tariffs

Seasonal TOU Demand tariffs – Residential and Business

Under the SAC Small STOUD tariff, there is an anytime energy (volume) charge and
demand charges with seasonal and time-of-day dimensions. Two time periods apply –
peak and off-peak – with different demand rates applying for each time period. Different
time periods will apply depending on whether the customer is classified as Residential
Tariff description or Business.

There is no fixed charge per day for DUOS.

An example of how (DUOS) charges are calculated under the SAC Small STOUD is
provided in Appendix 4.

Opt-in and opt-out A customer (or their retailer) must request a tariff change to opt into these tariffs. Tariff
arrangements access considerations include suitable metering.

The following time periods apply to DUOS charges for the STOUD – Residential tariffs:

Peak demand 3:00pm to 9:30pm all summer days

Off-Peak
Residential – time 3:00pm to 9:30pm all non-summer days
demand
periods
An any time energy (volume) charge applies to all metered
Energy
consumption

Note: ‘Summer’ is defined as the months of December, January and February.

The following time periods apply to DUOS charges for the STOUD – Business tariffs:

Peak demand 10:00am to 8:00pm on summer weekdays

Off-Peak
Business – time 10:00am to 8:00pm on non-summer weekdays
demand
periods
An any time energy (volume) charge applies to all metered
Energy
consumption

Note: ‘Summer’ is defined as the months of December, January and February.

Determination of the chargeable demand quantity is the same for both the peak and off-
Chargeable demand peak demand charges (Note: A minimum chargeable demand of 3 kW applies in non-
quantities
summer months).

There is no fixed charge for DUOS. A fixed charge per day applies throughout the year
Fixed charge/s
for TUOS. Jurisdictional Scheme amounts set to nil following the Queensland

8
NER, clause 6.18.1C(a).

2018–19 Network Tariff Guide v1.0 page 17

 Application of tariff and charges – SAC Small

Government’s direction not to pass through until at least 2020.

The monthly demand charges, for both summer and non-summer, are based on the
9
average demand the customer places on the network in the daily demand window:

Residential the 6.5 hour peak period between 3:00pm and 9:30pm

Business the 10 hour peak period on weekdays between 10:00am and 8:00pm

Demand charge/s The highest four demand days in the month are determined by comparison of the
average demand recorded in these daily demand windows. The monthly demand rate is
applied to the average of these top four demand days.

In the non-summer months a minimum chargeable demand of 3 kW also applies –

meaning the customer pays for 3 kW of demand or the average of their top four average
demand days in the month, whichever is the greater.

The volume calculation is based on a $/kWh rate applied to all metered kWh
consumption for the billing period (both peak and off-peak).

An anytime energy rate ($/kWh) applies throughout the year for TUOS volume charges.
Volume charge/s The TUOS rate need to be adjusted by the customer’s applicable DLF. The standard
2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

IBT – Residential and Business

These tariffs have an inclining block structure, with the rate increasing with each step up
in a customer’s energy consumption level above defined thresholds. Under the IBT
there are three consumption blocks – Block 1, Block 2 and Block 3 – with different rates
applying to the volume charge for each block. Different block sizes will apply depending
Tariff description
on whether the customer is classified as Residential or Business.

A fixed charge per day also applies.

Ergon Energy’s IBT network tariff calculation methodology is set out in Appendix 2.

The IBT tariff is the default primary network tariff applying to all SAC Small residential
Opt-in and opt-out and business customers. The tariff can be accessed without requiring metering
arrangements changes at the premises. A customer (or their retailer) may request a tariff change to
another primary network tariff for SAC Small (STOUE or STOUD).

The following consumption blocks apply for IBT Residential tariffs:

Block Daily kWh Annual equivalent kWh

Residential -
consumption blocks Block 1 <2.74 kWh <1,000 kWh per annum

Block 2 2.74 - 16.43 kWh 1,000 - 6,000 kWh per annum

9
Note, ‘demand’ refers to the import demand in kW. No adjustment to import demand is made for export to the distribution
network

2018–19 Network Tariff Guide v1.0 page 18

 Application of tariff and charges – SAC Small

Block 3 >16.43 kWh >6,000 kWh per annum

The following consumption blocks apply for IBT Business tariffs:

Block Daily kWh Annual equivalent kWh

Business –
Block 1 <2.74 kWh <1,000 kWh per annum
consumption blocks
Block 2 2.74 - 54.76 kWh 1,000 - 20,000 kWh per annum

Block 3 >54.76 kWh >20,000 kWh per annum

A fixed charge per day applies throughout the year for DUOS and TUOS.
Fixed charge/s
Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.

The volume charge is charged according to three blocks. The inclining blocks are
triggered once a customer exceeds each nominated consumption threshold. For
network billing and operational purposes, the IBT is denominated and applied on a daily
basis. The annual equivalent kWh is provided for presentation purposes only. The IBT
DUOS calculation methodology is set out in Appendix 2.
Volume charge/s
An anytime energy rate ($/kWh) applies throughout the year for TUOS volume charges.
The TUOS rate need to be adjusted by the customer’s applicable DLF. The standard
2018-19 DLFs are provided in Section 8 below.
Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

Seasonal TOU Energy tariffs – Residential and Business

Under the SAC Small STOUE tariff, there are two time periods – peak and off-peak –
which includes seasonal, day of week and time-of-day dimensions. Different rates apply

Tariff description for energy (volume) consumed in peak and off-peak periods. Different time periods will
apply depending on whether the customer is classified as Residential or Business.

A fixed charge per day also applies.

Opt-in and opt-out A customer (or the retailer) must request a tariff change to opt in to these tariffs. Tariff
arrangements access considerations include suitable metering.

The following time periods apply to DUOS charges for STOUE – Residential tariffs:

Peak 3:00pm to 9:30pm on all summer days

Residential – time
periods Off-Peak All other times

Note: ‘Summer’ is defined as the months of December, January and February

The following time periods apply to DUOS charges for STOUE – Business tariffs:

Peak 10:00am to 8:00pm on summer weekdays

Business – time
periods Off-Peak All other times

Note: ‘Summer’ is defined as the months of December, January and February

2018–19 Network Tariff Guide v1.0 page 19

 Application of tariff and charges – SAC Small

A fixed charge per day applies throughout the year for DUOS and TUOS.

Fixed charge/s Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.

The DUOS volume calculation is based on the $/kWh rate applied to the relevant peak
and off-peak time period (refer residential and business time periods above).

An anytime energy rate ($/kWh) applies throughout the year for TUOS volume charges.
Volume charge/s The TUOS rate needs to be adjusted by the customer’s applicable DLF. The standard
2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

SAC Residential Lifestyle Tariff

Residential tariff for residential customers in the East zone with consumption less than 100MWh per year

Residential Lifestyle offers a flatter electricity bill based on smoothing of the underlying
network peak charges. Customers must have a digital (type 4) meter installed and
consent to monthly billing in order to access this tariff.

This tariff is based on a network tariff where the cost of using the network is primarily
linked to customer usage of the network between 4pm and 9pm on any day in the

Tariff description summer season of November to March (the summer peak window).

Customers can pay for their network usage during the summer peak window through a
fixed monthly charge that buys the right to use the network to transport up to an agreed
amount of electricity during each summer weak window (Band 2 to 5). The option
remains to pay entirely on a pay as you go basis (choosing Band 1)

Monthly charge based on customer’s nominated band. The bands are set out below:

Network
access Summer peak window network use allowance in the band
allowance

Access band 1 0 kWh. Does not include an allowance

Includes network access allowance to transport up to 5 kWh in each

Access band 2
daily summer peak window
Network Access
Allowance Includes network access allowance to transport up to 10 kWh in each
Access band 3
daily summer peak window

Includes network access allowance to transport up to 15 kWh in each

Access band 4
daily summer peak window

Includes access to the network to transport up to 20 kWh in each daily

Access band 5
summer peak window

2018–19 Network Tariff Guide v1.0 page 20

 Application of tariff and charges – SAC Small

Customers can choose the band option that matches their maximum daily use in the
summer peak window and payment preference. Should use of the network exceed the
summer peak window agreed amount included in the band, top-up fees apply. There is
no top up fee for exceeding the agreed allowance of energy anytime outside of the
summer peak window.

The top-up charge and energy usage rate are additional charges and the same rates
apply for these regardless of the band chosen.

The summer peak top-up charge is applied to the single maximum daily energy
consumed above the threshold associated with the nominated band during the billing
period.

The summer peak top-up charge applies to network use during the summer peak
window which is defined as: November to March, any day between 4pm and 9pm.
Summer peak top-up The summer peak top-up rate is the same regardless of the chosen band.
charge
There is no top up charge for exceeding the agreed allowance anytime outside of the
summer peak window.

Once the allocation is exceeded, the increased amount remains available for the rest of
the month and then resets back to the original nominated allowance at the start of the
following month.

The volume calculation is based on a $/kWh charge applied to all metered kWh
consumption for the billing period (both during and outside the summer peak window).

The volume rate is the same regardless of the chosen band.

The anytime volume charge applies to all energy supplied from the grid.
Volume charge
An anytime energy rate ($/kWh) applies throughout the year for TUOS volume charges.
The TUOS rate need to be adjusted by the customer’s applicable DLF. The standard
2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

The tariff is designed to operate with a smart meter.

Once choice of access band is made, customers cannot choose a lower band until they
Further conditions have been on the chosen band for a full 12 months. Customers, however, can choose
to move to increase their network access allowance by moving to a higher band at any
time.

SAC Small secondary tariffs

Volume Night Controlled

This tariff allows Ergon Energy to directly curtail supply to designated circuits at a
customer’s premises in return for a lower rate. It is ideal for connecting hot water
systems and other load that can be switched off at different times during the day to help
manage load on the network.
Tariff description
Supply is generally available for a minimum period of eight hours a day, at the absolute
discretion of Ergon Energy, but usually between the hours of 10:00pm and 7:00am.

To access this tariff, electricity supply must be either:

2018–19 Network Tariff Guide v1.0 page 21

 Application of tariff and charges – SAC Small

 permanently connected to eligible apparatus (e.g. hot water system)

 permanently connected to specified parts of eligible apparatus (e.g.hot water

system booster heating unit)

 connected to eligible apparatus via a socket-outlet approved by Ergon Energy (e.g.

pool pump)
Approval of apparatus to connect to controlled load network tariffs is at the absolute
discretion of Ergon Energy. Further detail on the types of apparatus generally accepted
to be connected to the Volume Night Controlled network tariff is set out in Appendix 9.

SAC small residential customers can access this tariff, provided it is used in conjunction
with any other primary network tariff ( IBT, STOUE or STOUD). SAC small business
customers may also access this tariff, as long as their primary network tariff is the IBT or
STOUE tariff. SAC small business customers on the STOUD network tariff are not
eligible for the Volume Night Controlled tariff, however they may access our other
Opt-in and opt-out controlled load network tariff (Volume Controlled).
arrangements
A customer (or their retailer) must request to opt in to these tariffs. Tariff access
considerations include suitable apparatus (see Appendix 9), metering and load control
equipment.

The customer’s retailer is to arrange provision of load control equipment from Ergon
Energy (where applicable). Additional charges may apply.

Fixed charge/s A fixed charge per day applies throughout the year for DUOS.

An anytime energy rate ($/kWh) applies throughout the year for DUOS and TUOS
volume charges. The TUOS rate needs to be adjusted by the customer’s applicable

Volume charge/s DLF. The standard 2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

Volume Controlled

This tariff allows Ergon Energy to directly curtail supply to designated circuits at a
customer’s premises in return for a lower rate.

The tariff is similar to the Volume Night Controlled tariff, however under the Volume
Controlled tariff the minimum period of supply is extended to eighteen hours a day. The
times supply is available under the Volume Controlled tariff is at the absolute discretion
of Ergon Energy.
Tariff description To access this tariff, electricity supply must be either:

 permanently connected to eligible apparatus (e.g. hot water system)

 permanently connected to specified parts of eligible apparatus (e.g. hot water

system booster heating unit)

 connected to eligible apparatus via a socket-outlet approved by Ergon Energy (e.g.

pool pump)

2018–19 Network Tariff Guide v1.0 page 22

 Application of tariff and charges – SAC Small

Approval of apparatus to connect to controlled load network tariffs is at the absolute

discretion of Ergon Energy. Further detail on the types of apparatus generally accepted
to be connected to the Volume Controlled network tariff is set out in Appendix 9.

SAC small customers can access this tariff, provided it is in conjunction with another
SAC small primary network tariff (IBT, STOUD or STOUE) at the premises. Under
specific circumstances (e.g. to support a small tariff trial), this tariff may be offered as a
primary tariff at Ergon Energy’s discretion.
Opt-in and opt-out A customer (or their retailer) must request to opt in to these tariffs. Tariff access
arrangements
considerations include suitable apparatus (see Appendix 9), metering and load control
equipment.

The customer’s retailer is to arrange provision of load control equipment from Ergon
Energy (where applicable). Additional charges may apply.

Fixed charge/s A fixed charge per day applies throughout the year for DUOS.

An anytime energy rate ($/kWh) applies throughout the year for DUOS and TUOS
volume charges. The TUOS rate needs to be adjusted by the customer’s applicable

Volume charge/s DLF. The standard 2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

SAC Small unmetered tariffs

Unmetered supply

This tariff is designed for small uniform loads that have no meter at the connection point.
Unmetered supplies within our network area include public lighting (street lights), traffic
lights, watchman lights and other types of unmetered public amenities (e.g. illuminated
signs, phone boxes and public barbeques etc.).

There are three network charge categories applicable to unmetered supplies:

 Unmetered Supply (EVU, WVU or MVU) – applies to all unmetered supplies, other
than public lighting, and public lighting where the customer owns and maintains the
public lighting infrastructure.

 Unmetered Supply with Public Lighting Services – Minor Public Light (EVUMI,
Tariff description WVUMI or MVUMI) – applies to unmetered ‘minor’ public lighting where
Ergon Energy owns and maintains the public lighting infrastructure.

 Unmetered Supply with Public Lighting Services – Major Public Light

(EVUMA, WVUMA or MVUMA) – applies to unmetered ‘major’ public lighting where
Ergon Energy owns and maintains the public lighting infrastructure.

Each of the network charge categories have the same DUOS and TUOS rates applied.
However separate Alternative Control Services daily public lighting charges apply in
connection with the minor and major public lighting network charge categories. Further
information on the Alternative Control Service charges applicable to public lights is set
out in our Price List for Alternative Control Services.

2018–19 Network Tariff Guide v1.0 page 23

 Application of tariff and charges – SAC Small

The unmetered supply network tariff applies to all loads approved to be unmetered by
10
Opt-in and opt-out Ergon Energy . No other tariffs are available for unmetered supplies. The network
arrangements charge category (and associated Network Tariff Code) applicable to a customer will be
nominated by the customer or their retailer.

Fixed charge/s A fixed charge per day applies throughout the year for DUOS.

An anytime energy rate ($/kWh) applies throughout the year for DUOS and TUOS
volume charges. The TUOS rate need to be adjusted by the customer’s applicable DLF.

Volume charge/s The standard 2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

6.2. SAC Large tariffs

Our SAC Large network tariffs are designed for commercial, industrial and rural customers who
typically use between 100MWh and 4GWh of electricity a year. Our network tariffs for this group
include:

 Demand Large (DL)

 Demand Medium (DM)

 Demand Small (DS).

 STOUD

Further information on the application of charges and tariff conditions for our SAC Large tariffs is set
out in the table below

Table A1.2: Application of tariff and charges - SAC Large

Application of tariff and charges – SAC Large

SAC Large STOUD default tariff

Seasonal TOU Demand
The SAC Large STOUD tariff is similar to the SAC Large anytime demand tariffs,
however rates charged have seasonal and time-of-day dimensions. Two time periods
apply – peak and off-peak – with different rates applying for each time period.

Tariff description For the SAC Large STOUD tariff, all of the charging parameters, with the exception of
the fixed charge, include seasonal and time-of-day dimensions.

An example calculation of how the STOUD is calculated for SAC Large is provided in
Appendix 4.

Any new SAC Large premises connections default to the STOUD tariff where no
network tariff has been advised to Ergon Energy.
Opt-in and opt-out
arrangements Customers (or their retailer) wishing to opt out of this arrangement can either request an
initial assignment or a re-assignment to the SAC Large anytime demand tariffs through
their retailer.

10
The NER prescribes which metering installations do not require a meter (Type 7)

2018–19 Network Tariff Guide v1.0 page 24

 The following time periods apply to the STOUD – SAC Large tariffs:

Peak demand 10:00am to 8:00pm on summer weekdays

Off-peak demand All times during non-summer months
Time periods Peak energy All times during summer months
Off-peak energy All times during non-summer months

Note: ‘Summer’ is defined as the months of December, January and February

The threshold demands applicable to the SAC Large STOUD tariffs are:

Peak 20kW
Threshold above which
Off-peak 40kW
demand charge applies

Note: Applies to DUOS and TUOS charges.

A fixed charge per day applies throughout the year for DUOS and TUOS.

Fixed charge/s Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.

The DUOS and TUOS peak demand calculation uses the highest kW maximum demand
in any single half hour at any time during the peak demand period in each summer
month (any single half hour between 10:00am and 8:00pm on a summer weekday). The
Actual demand demand charge will be applied to the kW amount by which a customer's actual monthly
charge/s (peak)
maximum demand is greater than the demand threshold applicable to the peak period.
Where the monthly metered maximum demand is less than the demand threshold, the
chargeable demand for that month is set to zero.

The DUOS and TUOS off-peak demand calculation uses the highest kW maximum
demand in any single half hour at any time during the peak demand period in each non-
Actual demand summer month. The demand charge will be applied to the kW amount by which a
charge/s (off-peak) customer's actual monthly maximum demand is greater than the demand threshold
applicable to the off-peak period. Where the monthly metered maximum demand is less
than the demand threshold, the chargeable demand for that month is set to zero

For DUOS, the peak volume calculation is based on a $/kWh rate applied to metered
kWh consumption at all times during summer months. In 2018-19, the DUOS peak
energy rate is set to $0/kWh. The off-peak volume calculation is based on a $/kWh rate
applied to metered kWh consumption at all times during non-summer months.
Volume charge/s
For TUOS the same anytime energy rate ($/kWh) applies for the volume charge in both
peak and off-peak periods.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

SAC Large anytime demand tariff

Demand Large, Demand Medium, Demand Small
The Demand Large, Demand Medium and Demand Small tariffs are general anytime
Tariff description demand tariffs which allow customers to reduce their network tariff costs by reducing
peak demand and/or total energy use. The tariffs are self-selected with the customer

2018–19 Network Tariff Guide v1.0 page 25

 load characteristics determining the optimum tariff category (DL, DM or DS).

Opt-in and opt-out A customer (or their retailer) may request a tariff change to another SAC Large anytime
arrangements demand tariff or to the STOUD tariff.

The threshold demands applicable to the SAC Large anytime demand tariffs are:

Demand Large 400kW

Threshold above which Demand Medium 120kW

demand charge applies Demand Small 30kW

Note: applies for DUOS and TUOS charges

A fixed charge per day applies throughout the year for DUOS and TUOS.

Fixed charge/s Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.

For DUOS and TUOS, the actual demand charge will be applied to the kW amount by
which a customer’s actual monthly maximum demand is greater than the demand
Actual demand threshold applicable to the customer’s network tariff. Where the monthly metered
charge/s
maximum demand is less than the demand threshold, the chargeable demand for that
month is set to zero and no demand charge is payable for that month.

An anytime energy rate ($/kWh) applies throughout the year for DUOS and TUOS
volume charges. The TUOS rate needs to be adjusted by the customer’s applicable

Volume charge/s DLF. The standard 2018-19 DLFs are provided in Section 8 below.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

Where Ergon Energy is providing Default Metering Services, additional ACS capital and
ACS meter charge/s non-capital metering charges may apply. The customer’s Network Tariff Code denotes
which charges apply.

2018–19 Network Tariff Guide v1.0 page 26

6.3. CAC tariffs

Our CAC network tariffs are designed for large commercial and industrial customers, typically
consuming between 4GWh and 40GWh a year. Our network tariffs for this group include:

 CAC 22/11 kV Line

 CAC 22/11 kV Bus

 CAC 33kV

 CAC 66kV
 STOUD CAC 22/11 kV Line

 STOUD CAC 22/11 kV Bus

 STOUD CAC Higher Voltage (66/33 kV)

A further description on the application of charges and tariff conditions for our CAC tariffs is set out
below.

Table A1.3: Application of tariff and charges - CACs

Application of tariff and charges

CAC anytime demand

CAC 66 kV, 33kV, 22/11 kV Bus, 22/11 kV Line
The CAC 66kV, 33kV, 22/11kV Bus and 22/11kV Line are anytime demand tariffs with an
excess reactive power charge. This charge encourages customers to improve their
power factor and reduce their usage of network capacity.

Connection unit charges apply for customers who have connected to our network under
Tariff description
legacy arrangements (prior to 1 July 2010).

Customers on CAC tariffs have site-specific aspects, which are required to calculate
network charges (e.g. authorised demand, DLF, number of connection units). A site
specific tariff schedule is available on request by contacting Network Pricing.

Opt-in and opt-out A customer (or their retailer) may request a tariff change to another CAC anytime
arrangements demand tariff or to the CAC STOUD tariff.

The DUOS connection unit calculation multiplies the connection unit charge ($/day) by
Connection unit the customer's site-specific number of connection units. Refer to Appendix 3 for an
charge/s
illustrative example.

A fixed charge per day applies throughout the year for DUOS and TUOS. Where CACs
have an alternate supply (in addition to their primary supply), the TUOS fixed charge will

Fixed charge/s be set to zero on the alternate supply.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.
12
The DUOS and TUOS capacity charge is the greater of the authorised kVA demand or
11
Capacity charge/s any time maximum kVA demand recorded in any half hour period during the billing
month.

11
CACs who also have an EG classification will have their export kVAr set to zero in any interval when kW are imported into our
distribution network. This adjustment impacts both kVA and excess kVAr billing quantities. Further details on our kVA
calculation methodology are set out in Appendix 6.

2018–19 Network Tariff Guide v1.0 page 27

 Application of tariff and charges

Where CACs have an alternate supply (in addition to their primary supply), the
authorised kVA demand will be set at zero for the alternate supply.

Actual demand The DUOS Actual Demand Charge is the anytime maximum kVA demand recorded in
18
charge/s any half hour period during the billing month.

An anytime energy rate ($ per kWh) applies throughout the year for DUOS and TUOS
volume charges. The TUOS rate needs to be adjusted by the customer’s site-specific

Volume charge/s DLF.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

The DUOS excess reactive (kVAr) power charge is calculated monthly based on the
kVAr level at the time of each customer’s individual monthly kVA peak. To the extent the
actual kVAr exceeds the customer’s permissible kVAr quantity (determined by the
customer’s authorised demand and the customer's compliant power factor), excess kVAr
Excess reactive power
18 charges are applied.
charge/s
Ergon Energy’s excess kVAr calculation methodology is set out in Appendix 5.

The demand-based components are in kVA. Ergon Energy’s kVA calculation

methodology is set out in Appendix 6.

CAC STOUD default tariff

Seasonal TOU Demand CAC Higher Voltage, 22/11 kV Bus, 22/11 kV Line
Like our other STOUD tariffs, the CAC STOUD structure includes seasonal and time-of
day dimensions with a peak demand charge, and off-peak energy charge and a capacity
charge (off-peak demand). The CAC STOUD also includes an excess reactive power
charge and a connection unit charge, similar to the charging parameters applying to the
Tariff description CAC anytime demand tariffs.

Customers on CAC tariffs have site-specific aspects, which are required to calculate
network charges (e.g. authorised demand, DLF, number of connection units). A site
specific tariff schedule is available on request by contacting Network Pricing.

New CAC premise connections default to the STOUD where no network tariff has been
Opt-in and opt-out advised to Ergon Energy. Customers wishing to opt-out of this arrangement can either
arrangements request an initial assignment or re-assignment to one of our other standardises CAC
tariffs.

The following time periods apply to the STOUD – CAC tariffs:

Peak demand 10:00am to 8:00pm on summer weekdays

All times during non-summer months and all times during
Capacity charge
summer months excluding demands occurring during the peak
Time periods (off-peak)
window of 10.00am to 8.00pm on summer weekdays
Volume charge
Applies to all metered consumption during non-summer months.
(off-peak)

Note: ‘Summer’ is defined as the months of December, January and February.

12
Where necessary Ergon Energy will convert an AD in kW to a kVA measure, for further details refer to Section 5 (General
Requirements).

2018–19 Network Tariff Guide v1.0 page 28

 Application of tariff and charges

The DUOS connection unit calculation multiplies the connection unit charge ($/day) by
Connection unit the customer's site-specific number of connection units. Refer to Appendix 3 for an
charge/s
illustrative example.

A fixed charge per day applies throughout the year for DUOS and TUOS.

Fixed charge/s Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.

The DUOS off-peak capacity charge calculation uses the maximum of authorised kVA
13
demand or the monthly actual kVA maximum demand during the off-peak window,
which is all times during non-summer months and all times during summer months
excluding demands occurring during the peak window of 10:00am to 8:00pm on summer
weekdays.
Capacity charge/s
The TUOS capacity charge doesn’t have seasonal or time-of use dimensions. The
TUOS calculation is the same as what is applied to calculate capacity charges under the
CAC anytime demand tariff structure, which uses the greater of the authorised kVA
demand or any time maximum kVA demand recorded in any half hour period during the
billing month.

Actual demand The DUOS peak demand calculation uses the maximum kVA demand in any single half
charge/s hour at any time during the peak demand period in each summer month

The DUOS excess reactive (kVAr) power charge is calculated monthly based on the
kVAr level at the time of each customer’s individual monthly kVA peak. To the extent the
actual kVAr exceeds the customer’s permissible kVAr quantity (determined by the
customer’s authorised demand and the customer's compliant power factor), excess kVAr
Excess reactive power
charges are applied.
charge/s
Ergon Energy’s excess kVAr calculation methodology is set out in Appendix 5.

The demand-based components are in kVA. Ergon Energy’s kVA calculation

methodology is set out in Appendix 6.

The DUOS off-peak volume calculation uses total metered kWh consumption at all times
during non-summer months.

An anytime energy rate ($ per kWh) applies throughout the year for TUOS volume
Volume charge/s
charges. The TUOS rate needs to be adjusted by the customer’s site-specific DLF.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

13
Where necessary Ergon Energy will convert an AD in kW to a kVA measure, for further details refer to Section 5 (General
Requirements

2018–19 Network Tariff Guide v1.0 page 29

6.4. ICC tariffs

ICCs generally use more than 40GWh of electricity per year and typically comprise of mining
customers and customers involved in transport (e.g. rail) and pumping operations. ICC tariffs are site
specific, and are calculated on an individual basis to reflect the specific site’s load requirement.

A further description on the application of charges and tariff conditions for our ICC tariffs is set out
below.

Table A1.4: Application of tariff and charges - ICCs

Application of tariff and charges

ICC site specific tariffs

ICC network tariffs comprise an actual demand charge, an excess reactive power
14
charge, a capacity charge, a fixed charge and an anytime energy (volume) charge.

Tariff description The excess reactive power charge encourages customers to improve their power factor
and reduce their network capacity requirements.

Demand based charging components in the ICC tariff are in kVA.

Opt-in and opt-out All customers classified as an ICC must be on a site specific ICC tariff. No other tariff
arrangements options are available.

A fixed charge per day applies throughout the year for DUOS and TUOS.

Fixed charge/s Jurisdictional Scheme amounts set to nil following the Queensland Government’s
direction not to pass through until at least 2020.
16
The DUOS and TUOS capacity charge is the greater of the authorised kVA demand or
15
Capacity charge/s anytime maximum kVA demand recorded in any half hour period during the billing
month.

Actual demand The DUOS Actual Demand Charge is any time maximum kVA demand recorded in any
21
charge/s half hour period during the billing month.

The DUOS excess reactive (kVAr) power charge is calculated monthly based on the
kVAr level at the time of each customer’s individual monthly kVA peak. To the extent
the actual kVAr exceeds the customer’s permissible kVAr quantity (determined by the
customer’s authorised demand and the customer's compliant power factor), excess
Excess reactive power
21 kVAr charges are applied.
charge/s
Ergon Energy’s excess kVAr calculation methodology is set out in Appendix 5.

The demand-based components are in kVA. Ergon Energy’s kVA calculation

methodology is set out in Appendix 6.

Common service and A daily common service and general charge applies throughout the year for TUOS only
general charge/s ($/day).

14
For TUOS an additional fixed $/day charge applies for common service and general charges. This is presented as a separate
charging parameter in the customer’s site-specific tariff schedule.
15
ICCs who also have an EG classification will have their export kVAr set to zero in any interval when kW are imported into our
distribution network. This adjustment impacts both kVA and excess kVAr billing quantities. Further details on our kVA
calculation methodology are set out in Appendix 6.
16
Where necessary Ergon Energy will convert a contracted AD in kW to a kVA measure, for further details refer to Section 5
(General Requirements).

2018–19 Network Tariff Guide v1.0 page 30

 An anytime energy rate ($ per kWh) applies throughout the year for DUOS and TUOS
volume charges. The TUOS rate needs to be adjusted by the customer’s site-specific

Volume charge/s DLF.

Jurisdictional Scheme amounts set to nil following the Queensland Government’s

direction not to pass through until at least 2020.

6.5. EG tariffs

EG network tariffs are designed for network users that export 30kW and greater into the distribution
network, this excludes micro-embedded generators.

EG tariffs are site specific and calculated on an individual basis. The NER prohibits Ergon Energy
charging for the export of the electricity generated by a user into the distribution network. Charges
under the EG tariff reflects costs associated with connection assets and network user management
services provided to the EG.

7. TUOS regional indicators

TUOS charges are charged to Ergon Energy by Powerlink at each TCP or Bulk Supply Point. A TNI is
assigned to each of these Bulk Supply Points. TUOS charges for ICCs are directly reflective of the
TNI to which they are supplied. For all other classes, charges for each Bulk Supply Point are
assigned to one of three geographical TUOS Regions (i.e. T1, T2 or T3).

Appendix 8 lists all the TCPs, their assigned TNI and their geographical TUOS Region.

8. Distribution Loss Factors (DLFs)

DLFs are calculated annually by Ergon Energy in accordance with requirements of the NER in order to
determine the amount of energy dispatched to supply customers. They are approved by the AER and
published by the Australian Energy Market Operator (AEMO) on their website.

Every NMI has a DLF code which is associated with the location of the metering point.
The DLF is a multiplier used to convert the actual metered energy into the equivalent energy passing
through the appropriate TCP by allowing for the distribution network losses that are incurred between
the meter and the TCP.
The DLF is applied to the metered consumption for the calculation of TUOS volume charges. DLFs
are generally assigned on the basis of the standard metering voltage for the type of connection.
However, a specific loss factor may be applied where there is a unique network supply configuration.

2018–19 Network Tariff Guide v1.0 page 31

8.1. DLF categories and applications

The table below outlines the DLF categories used by Ergon Energy and their applications.
Table A1.6: DLF categories and applications

Category Description Application

Sub-transmission Bus Applicable to connection points that NMIs that are supplied from a zone substation
are High Voltage metered at a by dedicated, greater than 30 kV lines and
Sub-transmission Bus with a voltage metered at or immediately adjacent to the zone
greater than 30 kV. substation would be eligible for a
Sub-transmission Bus DLF.
Zone substations are defined as substations
where the voltage level is stepped down from a
voltage greater than 30 kV.

Sub-transmission Line Applicable to connection points that The Sub-transmission Line DLF will apply to all
are High Voltage metered at a NMIs that are:
Sub-transmission Line with a voltage  connected to high voltage sub-
greater than 30 kV. transmission lines (greater than 30 kV)
 metered at the same voltage as the line is
energised.
If customers believe that the NMI would qualify
for a high voltage Bus DLF rather than a high
voltage Line DLF they should submit details
justifying their claim to Ergon Energy. As an
example, NMIs supplied from a zone
substation by dedicated 22/11 kV lines and are
metered at or immediately adjacent to the zone
substation would be eligible for a 22/11 kV Bus
DLF.

22/11kV Bus Applicable to connection points that As per “Sub-transmission Bus” application
are High Voltage metered at a above.
22/11 kV Bus with a voltage less than
30 kV and greater than 1,000 volts.

22/11kV Line Applicable to connection points that The 22/11 kV Line DLF will apply to all NMIs
are High Voltage metered at a that are:
22/11 kV Line with a voltage less than  connected to high voltage distribution lines
30 kV and greater than 1,000 volts.
 metered at the same voltage as the line is
energised.

Low Voltage (LV) Bus Applicable to connection points that NMIs which are supplied from a distribution
are Low Voltage metered at a Low substation on their site (owned or leased) and
Voltage Bus with a voltage less than metered at the low voltage level are eligible for
1,000 volts. a LV Bus DLF.

Low Voltage (LV) Line Applicable to connection points that All NMIs not covered by any of the above
are Low Voltage metered at a Low categories. If customers believe that the NMI
Voltage Line with a voltage less than would qualify for a LV Bus DLF rather than a
1,000 volts. LV Line DLF they should submit details
justifying their claim to Ergon Energy.

2018–19 Network Tariff Guide v1.0 page 32

8.2. DLFs for 2018-19

Ergon Energy’s tariff schedules for SACs are published with default DLFs. The default DLFs are
based on the standard DLF for the most common network supply configuration for customers
assigned to the tariff. The actual DLF that is applied to a NMI will depend on individual characteristics
of the customer’s site (see application rules in Table A1.6 above).
The standard DLFs approved to apply to our SAC tariffs in 2018–19 are detailed in Table A1.7, the
table below. DLFs for ICCs, CACs and EGs are confidential and are available on request by
contacting Network Pricing ([email protected]).

Table A1.7: Standard DLFs

*
East Zone West Zone Mount Isa Zone
Network Level
Code DLF Code DLF Code DLF

Sub-transmission Bus GESB 1.007 GWSB 1.026 GMSB 1.000

Sub-transmission Line GESL 1.012 GWSL 1.064 GMSL 1.005

22/11 kV Bus GEHB 1.016 GWHB 1.070 GMHB 1.007

22/11 kV Line GEHL 1.036 GWHL 1.103 GMHL 1.035

LV Bus GELB 1.075 GWLB 1.149 GMLB 1.066

LV Line GELL 1.087 GWLL 1.171 GMLL 1.073

* The zonal boundaries are identical to those used for network tariffs.

2018–19 Network Tariff Guide v1.0 page 33

8.3. Further information

Further information on Ergon Energy’s methodology for calculating DLFs is available on our website:

https://www.ergon.com.au/network/network-management/network-pricing/distribution-loss-factor-
calculation-methodology.
Detailed information about the purpose and application of DLFs may also be obtained from the AEMO
website:

https://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Security-and-reliability/Loss-
factor-and-regional-boundaries

9. Micro Embedded Generating Units and the Solar Bonus

Scheme (SBS)
A micro-embedded generating unit is one of the kinds contemplated under Australian Standard (AS)
4777.1-2005. This is the standard that applied at the start of the current regulatory control period (1
July 2015) and captures inverters for energy systems up to 10kVA on single phase and up to 30 kVA
on three phases. Typically customers with a micro-embedded generating unit are classified as SACs
for network pricing purposes.

All customers with a micro-embedded generating unit must have a network connection agreement in
place with an Ergon Energy signalling their approval to connect the unit to the electricity grid.

Some customers may be eligible for distributor or retail funded FiT under the Queensland
Governments SBS. The Queensland Government’s SBS pays eligible customers a FiT for the surplus
electricity generated from solar photovoltaic (PV) systems and exported to the Queensland electricity
17
grid. Further information is available on the Department of Energy and Water Supply website.
Details of retailer funded solar FiT arrangements are available on the Queensland Competition
18
Authority’s website.

Network Tariff Codes

SACs that connect a micro embedded generating unit to our network have a supplementary Network
Tariff Code applied for Ergon Energy to administer and pay the FiT (if/where applicable). The Network
Tariff Codes that apply to micro embedded generating units are detailed in the table below.

Table A1.8: Network Tariff Codes applied to SACs with a micro EG unit

Network Description Conditions

Tariff Code

NVG0 Net Volume Generation 0 Applicable to a net metering installation that

does not access the distributor-funded 44c/kWh
FiT or meet the requirements for Net Volume
Generation 2 (NVG2). The micro EG unit may
be solar or non-solar (e.g. wind, battery).

NVG1 Net Volume Generation 1 Applies to any net metering installation that
meets the SBS requirements for the distributor-
funded 44 c/kWh FiT rate. This arrangement is
no longer available to new customers.

17
(https://www.dews.qld.gov.au/electricity/solar/installing/benefits).
18
http://www.qca.org.au/Electricity/Consumer/Solar-Feed-in-Tariffs.

2018–19 Network Tariff Guide v1.0 page 34

 Network Description Conditions
Tariff Code

NGV2 Net Volume Generation 2 Applies to any net metering installation that
meets the following criteria:

 is assigned to a “SAC Small” tariff class

(annual consumption less than 100 MWh
per annum)
 operates a solar PV system with a
maximum inverter capacity not exceeding 5
19
kilowatts
 does not receive a distributor-funded or
retail-funded FiT for the same PV system or
for another PV system at the same
premises.

GVG0 Gross Volume Generation 0 Applicable to any gross metering installation

where all energy produced by the micro EG unit
is measured. The micro-EG unit may be solar or
non-solar (e.g. wind, battery). Customers on this
arrangement are not eligible for the SBS.

As highlighted in Appendix 1: Ergon Energy 2018–19 SCS Network Tariffs , an additional “C”, “X” or
“B” component code may apply to the Network Tariff Code listed above (e.g. NVGC0). As noted in
Section 2.2.5, these additional series of Network Tariff Codes have been developed to enable the
billing of the regulated metering charges (i.e. Default Metering Services).

Further information on the application of Default Metering Services charges is set out in our Price List
for Alternative Control Services.

10. EG Avoided TUOS payments

“Avoided TUOS” applies where Ergon Energy does not source load from Powerlink’s transmission
system because part of the load is supplied from EGs that are connected directly to our distribution
system.

In certain situations the NER requires Ergon Energy to make payments to EGs, where that payment
represents a reduction in the amount payable by Ergon Energy to Powerlink.

Generally, to be eligible for Avoided TUOS payments, the EG must have:

 sought access to Ergon Energy’s distribution network under Chapter 5 of the NER; and

 a generator Connection Agreement with Ergon Energy; and

 registered, or intend to register with AEMO as a Generator Rules Participant.

Further information on the requirements for Avoided TUOS, including the methodology that Ergon
Energy uses to calculate Avoided TUOS is contained in our Information Guide for Standard Control
Services Pricing (www.ergon.com.au/network/network-management/network-pricing).

19
Capacity requirements are subject to change during 2019. Arrangements currently align to eligibility for the regional FIT.

2018–19 Network Tariff Guide v1.0 page 35

Appendix 2: Ergon Energy’s IBT network tariff calculation
methodology

The IBT is structured with a fixed rate per day and three energy consumption blocks, each with a different
volume (energy) rate applicable.

Block and fixed rates are different between the East, West and Mount Isa Zones and between residential and
business customers. Block sizes are also different between residential and business customers.

The IBT is denominated and applied on a daily basis. However, it may be described in the context of an annual
basis for network tariff consultation and presentation purposes. For example, the IBT Residential consumption
blocks are:

Block Daily kWh Annual equivalent kWh

Block 1 <2.74 kWh <1,000 kWh p.a.

Block 2 2.74 kWh – 16.43 kWh 1,000 kWh p.a. – 6,000 kWh p.a.

Block 3 >16.43 kWh >6,000 kWh p.a.

Daily denomination ensures IBT billing is equitably applied for any meter reading period (including NMIs where
a customer move-out/move-in occurs), based on an accumulated total of consumption divided by the number of
days in the reading period.

The IBT network tariff calculation methodology is as follows:

 a meter read is taken, with total consumption for the number of days within that meter reading period

 for IBT network billing purposes, the energy (kWh) assigned to each block is prorated back to a daily
equivalent for that meter reading period

 the bill is then calculated with the component parts being a daily fixed charge, Volume Charge Block 1,
Volume Charge Block 2 and Volume Charge Block 3

 daily calculations are then converted back to the total network charge by multiplication by the number of
days in the meter reading period

 in relation to TUOS –
o the TUOS volume component will effectively remain as a flat rate for all IBT tariffs (i.e. same
TUOS rate applied in each tariff block or meter reading period)
o the DLF will be applied to total metered consumption for TUOS.
The IBT bill is calculated as follows:

Component Calculation

Fixed Charge Number of days in the period multiplied by fixed charge rate.

Volume Charge Block 1 If equivalent daily consumption is less than the Block 1 daily allowance then:
 equivalent daily consumption multiplied by Block 1 rate
 multiplied by days in meter reading period
 no further calculations required.
Or, if equivalent daily consumption exceeds the Block 1 daily allowance then:
 Block 1 volume charge calculation applied
 proceed to Volume Charge Block 2 calculation.

2018–19 Network Tariff Guide v1.0 page 36

 Component Calculation

Volume Charge Block 2 For consumption within the Block 2 allowance then:
 equivalent daily consumption less the Block 1 daily allowance multiplied by Block
2 rate (up to the max block 2 threshold) multiplied by days in meter reading
period.

Volume Charge Block 3 For any consumption above the aggregate of Block 1 and Block 2 daily allowance
then:
 remaining consumption above the Block 1 and Block 2 daily allowance multiplied
by the Block 3 rate
 multiplied by days in meter reading period.

Example:

A residential customer is read quarterly. On this occasion, the customer is read at 90 days with the start read
being 123,400 kWh and the end read as 125,200 kWh. This equates to a consumption of 1,800 kWh for that
quarter’s read.
Currently, the GST exclusive rates for each DUOS component of the IBT Residential East tariff are as follows:

Network Tariff Code Fixed charge Block 1 Rate Block 2 Rate Block 3 Rate

ERIBT1 $1.250 $0.02172 $0.05132 $0.08793

Calculation

Equivalent Daily Consumption = consumption divided by the number of days in the read = 1,800/90 = 20.00.
Fixed Charge = 90 x $1.250 = $112.500
Volume Charge Block 1 = 2.74 x $0.02172 x 90 = $5.356
Volume Charge Block 2 = (16.43 - 2.74) x $0.05132 x 90 = $63.231
Volume Charge Block 3 = (20 - 2.74 - 13.69) x $0.08793 x 90 = $28.252
Quarterly DUOS = $209.339

The second quarter for this customer shows a total consumption of 200 kWh over 88 days for the period.
Calculation

Equivalent Daily Consumption = consumption divided by the number of days in the read = 200/88 = 2.27
Fixed Charge = 88 x $1.250 = $110.000
Volume Charge Block 1 = 2.27 x $0.02172 x 88 = $4.339
Volume Charge Block 2 = 0 x $0.05132 x 88 = $0
Volume Charge Block 3 = 0 x $0.08793 x 88 = $0
Quarterly DUOS = $114.339

2018–19 Network Tariff Guide v1.0 page 37

Example:
A residential premise (e.g. a summer holiday beach) is read quarterly. On this occasion, the customer has the
following consumption pattern.

Meter reading period (days) Consumption kWh

Quarter 1 90 1000

Quarter 2 88 0

Quarter 3 93 0

Quarter 4 95 0

The meter reading at the start of quarter 1 is 240,000 kWh and the reading at the end of the fourth quarter is
241,000 kWh.
Calculation – Quarter 1
Equivalent Daily Consumption = consumption divided by the number of days in the read = 1000/90 = 11.11.
Fixed Charge = 90 x $1.250 = $112.500
Volume Charge Block 1 = 2.74 x $0.02172 x 90 = $5.356
Volume Charge Block 2 = (11.11 – 2.74) x $0.05132 x 90 = $38.659
Volume Charge Block 3 = (0) x $0.08793 x 90 = $0
Quarterly DUOS = $156.515

Calculation – Quarter 2
Equivalent Daily Consumption = consumption divided by the number of days in the read = 0/88 = 00.00.
Fixed Charge = 88 x $1.250 = $110.000
Volume Charge Block 1 = (0) x $0.02172 x 88 = $0
Volume Block 2 = (0) x $0.05132 x 88 = $0
Volume Block 3 = (0) x $0.08793 x 88 = $0
Quarterly DUOS = $110.000

Calculation – Quarter 3
Equivalent Daily Consumption = consumption divided by the number of days in the read = 0/93 = 00.00.
Fixed Charge = 93 x $1.250 = $116.250
Volume Charge Block 1 = (0) x $0.02172 x 93 = $0
Volume Charge Block 2 = (0) x $0.05132 x 93 = $0
Volume Charge Block 3 = (0) x $0.08793 x 93 = $0
Quarterly DUOS = $116.250

Calculation – Quarter 4
Equivalent Daily Consumption = consumption divided by the number of days in the read = 0/95 = 00.00.
Fixed Charge = 95 x $1.250 = $118.750
Volume Charge Block 1 = (0) x $0.02172 x 95 = $0
Volume Charge Block 2 = (0) x $0.05132 x 95 = $0
Volume Charge Block 3 = (0) x $0.08793 x 95 = $0
Quarterly DUOS = $118.750

Total Annual DUOS (excluding GST) = $501.515.

2018–19 Network Tariff Guide v1.0 page 38

Appendix 3: CAC connection unit charge examples
Note: all amounts included in the worked examples below relate to DUOS only, and are GST exclusive

Distribution Use Of System (DUOS)

Default
Distribution Actual Excess
Connection Fixed Capacity Volume
Network Loss Factor Demand Reactive Power
Unit Charge Charge Charge Charge
Tariff Charge Charge
(NDCUC) (NDFC) (NDKVACC) (NDVC)
Code (NDKVAADC) (NDERPC)
$/day per $/excess kVAr
$/kVA of AD $/kVA per
Value Code connection $/day $/kWh per month
per month month
unit

EC66T1 Site specific $9.054 $120.000 $3.300 $2.400 $0.00421 $4.000

Example 1:

Where the customer’s:

AD = 3,500 kVA

Connection Units = 11

Actual Demand for the month = 3,000 kVA

Energy for the month = 1,400,000 kWh

Excess reactive power for the month = 0 kVAr.

Calculation
Connection Unit Charge = $9.054 x 30 days x 11 connection units = $2,987.820

Fixed Charge = $120.000 x 30 = $3,600.000

Capacity Charge = $3.300 x 3,500 kVA = $11,550.000

Actual Demand Charge = $2.400 x 3,000 kVA = $7,200.000

Volume Charge = $0.00421 x 1,400,000 kWh = $5,894.000

Excess Reactive Power Charge = $4.000 x 0 kVAr = $0.000

Total monthly DUOS = $31,231.820

Example 2:

Where the customer’s:

AD = 4,000 kVA

Connection Units = 0

Actual Demand for the month = 3,900 kVA

Energy for the month = 1,900,000 kWh

Excess reactive power for the month = 0 kVAr.

2018–19 Network Tariff Guide v1.0 page 39

Calculation
Connection Unit Charge = $9.054 x 30 days x 0 connection units = $0

Fixed Charge = $120.000 x 30 = $3,600.000

Capacity Charge = $3.300 x 4,000 kVA = $13,200.000

Actual Demand Charge = $2.400 x 3,900 kVA = $9,360.000

Volume Charge = $0.00421 x 1,900,000 kWh = $7,999.000

Excess Reactive Power Charge = $4.000 x 0 kVAr = $0.000

Total monthly DUOS = $34,159.000

2018–19 Network Tariff Guide v1.0 page 40

Appendix 4: Seasonal TOU Demand (STOUD) calculation
examples
Note: all amounts included in the worked examples below relate to DUOS only, and are GST exclusive.

CAC STOUD:
Distribution Use Of System (DUOS) Charges (GST exclusive)

Connection Fixed Capacity Charge Actual Demand Excess Reactive

Off-peak
Network Unit Charge Charge Off-peak Charge Peak Power Charge
(NDVCOP)
Tariff Code (NDCUC) (NDFC) (NDKVACCOP) (NDKVADCP) (NDERPC)

$/day per $/excess kVAr

$/kVA of AD/ per month
connection $/day $/kVA/month $/kWh
month
unit

EC66TOUT1 $9.054 $0.000 $5.400 $11.000 $4.000 $0.00360

Example:

Where the customer’s:

AD = 4,000 kVA

Connection Units = 0

Actual Demand Peak for the month = 3,600 kVA

Actual Demand Off-Peak for the month = 3,900 kVA

Excess reactive power for the month = 0 kVAr

Energy for the month = 1,600,000 kWh

Calculation – Month of January (Summer)

Connection Unit Charge = $9.054 x 31 days x 0 connection units = $0.000

Fixed Daily Charge = $0.000

Capacity Charge Off-peak = $5.400 x 4,000 kVA = $21,600.000

Actual Demand Charge Peak = $11.000 x 3,600 kVA = $39,600.000

Excess Reactive Power Charge = $4.000 x 0 kVAr = $0.000

Volume Charge Off-peak = Does not apply during a summer month

Total monthly DUOS = $61,200.000

2018–19 Network Tariff Guide v1.0 page 41

Calculation – Month of September (Non-summer)

Connection Unit Charge = $9.054 x 30 days x 0 connection units = $0.000

Fixed Daily Charge = $0.000

Capacity Charge Off-peak = $5.400 x 4,000 kVA = $21,600.000

Actual Demand Charge Peak = Does not apply during a non-summer month

Excess Reactive Power Charge = $4.000 x 0 kVAr = $0.000

Volume Charge Off-peak = $0.00360 x 1,600,000 kWh = $5,760.000

Total monthly DUOS = $27,360.000

SAC Large STOUD:

Distribution Use Of System (DUOS) Charges (GST exclusive)

Threshold above
Actual Demand Charge Volume Volume
which demand Fixed
Charge Charge Off-
charge applies Charge
Network Tariff Peak Off-peak Peak peak
(NDFC)
Code (NDDCP) (NDDCOP) (NDVCP) (NDVCOP)

Off-
Peak
peak $/day $/kW/ month $/kWh $/kWh $/kWh
kW
kW

ESTOUDCT1 20 40 $27.000 $57.646 $9.595 $0.00000 $0.02250

Example 1:

Where the customer’s:

Peak demand for the month = 50 kW

Peak energy for the month = 20,000 kWh

Calculation – Month of February (Summer)

Fixed Charge = $27.000 x 28 days = $756.000

Actual Demand Charge Peak = $57.646 x (50 kW – 20 kW) = $1,729.380

Actual Demand Charge Off-peak = Does not apply during a summer month

Volume Charge Off-peak = Does not apply during a summer month

Total monthly DUOS = $2,485.380

Example 2:

Where the customer’s:

Off-peak demand for the month = 40 kW

Off-peak energy for the month = 25,000 kWh

2018–19 Network Tariff Guide v1.0 page 42

Calculation – Month of July (Non-summer)

Fixed Charge = $27.000 x 31 days = $837.000

Actual Demand Charge Peak = Does not apply during a non-summer month

Actual Demand Charge Off-peak = $9.595 x (40 kW – 40 kW) = $0

Volume Charge Off-peak = $0.02250 x 25,000 kWh = $562.500

Total monthly DUOS = $1,399.500

SAC Small STOUD:

Distribution Use Of System (DUOS) Charges
(GST exclusive)
Minimum
chargeable Fixed Actual Demand Charge
Volume Charge
demand Charge
Network Tariff Peak Off-peak (NDVC)
(NDFC)
Code (NDDCP) (NDDCOP)

Off-
Peak
peak $/day $/kW/ month $/kW/ month $/kWh
kW
kW

ERTOUDCT1 Nil 3 $0.000 $78.125 $11.500 $0.01710

Example 1:

Where the Residential customer’s:

Peak demand for the month = 2 kW

Energy for the month = 500 kWh

Calculation – Month of February (Summer)

Fixed Charge = $0.000

Actual Demand Charge Peak = $78.125 x 2 kW = $156.250

Actual Demand Charge Off-peak = Does not apply during a summer month

Volume Charge = $0.01710 x 500 kWh = $8.550

Total monthly DUOS = $164.800

Example 2:

Where the Residential customer’s:

Peak Demand for the month = 2.725 kW

Energy for the month = 500 kWh

Calculation – Month of July (Non-summer)

Fixed Charge = $0.000

Actual Demand Charge Peak = Does not apply during a non-summer month

Actual Demand Charge Off-peak = $11.500 x 3 kW = $34.500 (minimum off-peak demand charge applied)

Volume Charge = $0.01710 x 500 kWh = $8.550

Total monthly DUOS = $43.050

2018–19 Network Tariff Guide v1.0 page 43

Appendix 5: Ergon Energy’s Excess kVAr calculation
methodology

Permissible kVAr
= 𝑆𝑄𝑅𝑇(𝐴𝐷2 − (𝐴𝐷 ∗ 𝐶𝑜𝑚𝑝𝑙𝑖𝑎𝑛𝑡 𝑃𝐹)2 )

Where AD = Authorised Demand and PF = Power factor

Actual Monthly kVAr

= 𝑆𝑄𝑅𝑇(𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝐴𝑇𝑀𝐷 𝑘𝑉𝐴2 − 𝐶𝑜𝑟𝑟𝑒𝑙𝑎𝑡𝑖𝑛𝑔 𝑘𝑊 2 )

Where ATMD = Anytime Maximum Demand

Excess Reactive Power Charge

= 𝑀𝑎𝑥 (0, 𝐴𝑐𝑡𝑢𝑎𝑙 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑘𝑉𝐴𝑟 − 𝑃𝑒𝑟𝑚𝑖𝑠𝑠𝑖𝑏𝑙𝑒 𝑘𝑉𝐴𝑟) ∗ 𝐸𝑥𝑐𝑒𝑠𝑠 𝑅𝑒𝑎𝑐𝑡𝑖𝑣𝑒 𝑃𝑜𝑤𝑒𝑟 𝐶ℎ𝑎𝑟𝑔𝑒

Example 1:

Where the customer’s:

AD = 6,000 kVA

Compliant PF = 0.95

Monthly ATMD is 5,000 kVA and 4,000 kW

Excess reactive power charge = $4.000 / excess kVAr

Calculation

Permissible kVAr
= 𝑠𝑞𝑟𝑡(60002 − (6000 ∗ 0.95)2 )

= 1,873 kVAr
Actual Monthly kVAr

= 𝑠𝑞𝑟𝑡(50002 − 40002 )

= 3,000 kVAr
Excess Reactive Power

= 𝑀𝑎𝑥 (0, 3000 − 1873)

= 1,127
Total monthly Excess Reactive Power Charge

= 1,127 x $4.000

= $4,508

2018–19 Network Tariff Guide v1.0 page 44

Appendix 6: Ergon Energy’s kVA calculation methodology

The four metering data quadrants recorded by interval meters are referred to as:
 kWLoad the real component of load power consumed by the customer over a given time period (Export
kWh - Ei)
 kWGen the real component of power generated by the customer over a given time period (Import kWh - Bi)
 kVArLag (kilovolt-amperes-reactive-hours) is a measure of the reactive power which exists when the
current and voltage are out of phase, where the current waveform is lagging the voltage waveform (Export
kVArh - Qi)
 kVArLead is a measure of the reactive power which exists when the current and voltage are out of phase,
where the current waveform is leading the voltage waveform (Import kVArh - Ki).

The kVA algorithm to be used by Ergon Energy is detailed below.

This “Standard” algorithm specifically excludes:

 incidental generation back into the Ergon Energy network

 any Leading VArs generated by customer equipment

 any contribution to lagging VArs by the generator

through modification of interval data as described below,

𝑘𝑉𝐴 = √(𝑘𝑊𝐿𝑜𝑎𝑑 )2 + (𝑘𝑉𝐴𝑟𝐿𝑎𝑔 )2 for each 30 minute interval at a connection point.

For the purposes of network billing, the monthly maximum demand is the maximum kVA of the half hourly
values for each interval during the relevant month, calculated as above.

Where Ergon Energy has agreed to the summation of the customer’s demand at more than one metering
installation for the purposes of determining a diversified demand charge, the billable demand is the vector
summation of kWLoad and kVArLag at the individual metering installations. That is, the chargeable demand is
calculated for each interval as:

𝑀𝑒𝑡𝑒𝑟 1 𝑀𝑒𝑡𝑒𝑟 2 𝑀𝑒𝑡𝑒𝑟 1 𝑀𝑒𝑡𝑒𝑟 2

𝑘𝑉𝐴 = √(𝑘𝑊𝐿𝑜𝑎𝑑 + 𝑘𝑊𝐿𝑜𝑎𝑑 + ⋯ )2 + (𝑘𝑉𝐴𝑟𝐿𝑎𝑔 + 𝑘𝑉𝐴𝑟𝐿𝑎𝑔 + ⋯ )2

Modification of interval data explained

Within a metering interval, there may be both kWLoad and kWGen, where the real demand at a site swings
through zero from load to generation or vice-versa. There may also be both kVArLag and kVArLead, where the
reactive power swings from lagging to leading power factor, or vice-versa. Depending upon the excitation level
of the embedded generator, it will contribute kVArLag or kVArLead.

With kVA charging for loads, if the load demand were to be directly calculated as
𝒌𝑽𝑨 = √(𝒌𝑾𝑳𝒐𝒂𝒅 )𝟐 + (𝒌𝑽𝑨𝒓𝑳𝒂𝒈 )𝟐 for each 30 minute interval, the kVArLag component may contain a

contribution from the generator. This has the potential to increase the total kVA and kVAr and may create the
monthly maximum load demand and a kVAr level that exceeds the permissible quantity.

It is not the intent of load side kVA charging for demand and excess kVAr to include this generator impact.
Therefore, the generator’s contribution to kVA charges for the load needs to be negated.

2018–19 Network Tariff Guide v1.0 page 45

For the purposes of Ergon Energy network billing for loads, where an ICC or CAC also has an EG
20
classification , the interval data is modified so that in any 30 minute interval where Bi≠0, Qi is made equal to
0.

With the half hourly interval values of kWLoad and kVArLag modified to remove generator contribution as
described the monthly maximum load kVA charge will be based on the vector sum of Ei and Qi interval data. A
load that swings from export to import within an interval would receive a charge based only on the energy
exported from the grid to the customer for the interval and would not include any kVArLag contribution by the
generator. Where a peak period has been nominated by Ergon Energy the charge would be based on the load
based maximum demand occurring during this period.

20
Means a network user classified as an ‘EG’ in accordance with definitions set out in our annual Pricing Proposal. For further details, refer
to the Glossary in this document.

2018–19 Network Tariff Guide v1.0 page 46

 Appendix 7: DUOS locational zones

Three pricing zones have been delineated in our distribution area, broadly based on Queensland’s local
government areas (LGAs), with the distribution network electrical connection being the final determinant
of which zone applies. Zone pricing impacts DUOS charges only; TUOS and jurisdictional scheme
charges are not impacted by zones.

The LGAs covered by each zone are detailed below.

Figure A7.1: Zone coverage

The whole LGAs of:

West
The whole LGAs of: Mount Consists of the regulated
East Bundaberg (R) Barcaldine (R) Isa
network within the whole
LGAs of Cloncurry (S)
Cairns (R) Blackall - Tambo (R) and Mount Isa (C), and
Cassowary Coast (R) Charters Towers (R) those parts of Burke (S)
and Boulia (S) supplied
Fraser Coast (R) Longreach (R) from the Mount Isa
Gladstone (R) Maranoa (R) system.
Mackay (R) Balonne (S)
North Burnett (R) Bulloo (S)
Rockhampton (R) Carpentaria (S)
South Burnett (R) Cook (S)
Southern Downs (R) Croydon (S)
Toowoomba (R) Etheridge (S)
Whitsunday (R) Flinders (S)
Townsville (C) Hope Vale (S)
Banana (S) McKinlay (S)
Livingstone (S) Murweh (S)
Burdekin (S) Paroo (S)
Hinchinbrook (S) Quilpie (S)
Cherbourg (S) Richmond (S)
Woorabinda (S) Winton (S)
Yarrabah (S) Wujal Wujal (S)

Part of the following Part of the following

LGAs: LGAs:
Gympie (R) (Ergon Barcoo (S) (connected to
Energy area only) national electricity grid
Douglas (S) (excluding only)
areas north of the Douglas (S) (north of the
Daintree River) Daintree River only)
Isaac (R) (excluding Goondiwindi (R) (Ergon
areas west of Moranbah Energy supply area only)
township) Isaac (R) (west of
Western Downs (R) Moranbah township only)
(Dalby township and Western Downs (R)
Wambo district only) (excluding Dalby township
Central Highlands (R) and Wambo district)
(excluding Emerald and Central Highlands (R)
areas west of Emerald) (Emerald and areas west
Tablelands (R) (excluding of Emerald only)
Herberton areas not Tablelands (R) (Herberton
supplied by the "East" areas not supplied by the
distribution system) "East" distribution system
Mareeba (S) (excluding only)
areas not supplied by the Mareeba (S) (areas not
"East" distribution supplied by the "East"
system) distribution system only)

Note: (R) = Regional Council, (S) = Shire Council and (C) = City Council

2018–19 Network Tariff Guide v1.0 page 47

Figure A7.2: Zone map

2018–19 Network Tariff Guide v1.0 page 48

Appendix 8: TUOS regional indicators

Ergon Energy’s TUOS tariff structures are based on geographical TUOS Regions (e.g. T1, T2, T3 or
T4). The TUOS regions are based on groupings of Transmission Connection Points (TCP) or Bulk
Supply Points. A list off all the TCPs, their assigned TNI and their geographical TUOS region is provided
below.

TUOS regional indicators for CAC and SAC network tariffs

Transmission Connection Point TNI TUOS Region

Alligator Creek QALC T2

Louisa Creek QALH T2

Alan Sherriff QASF T2

Biloela QBIL T1

Bowen North QBNN T2

Blackwater 132kV (Rolleston) QBWH T1

Blackwater 66 kV QBWL T1

Gladstone North (Calliope River) QCAR T1

Columboola QCBL T1

Cardwell QCDW T3

Chinchilla QCHA T1

Clare South QCLR T2

Cairns 132kV QCNS T3

Collinsville QCOL T2

Cairns 22 kV QCRN T3

Dan Gleeson QDGL T2

Dysart QDYS T1

Egans Hill QEGN T1

El Arish QELA T3

Edmonton QEMT T3

Garbutt QGAR T2

Gin Gin QGNG T1

Gladstone South QGST T1

Innisfail QINF T3

Ingham QING T3

Kamerunga QKAM T3

King Creek QKCK T2

Lilyvale 132kV QLCM T1

Lilyvale 66 kV QLIL T1

2018–19 Network Tariff Guide v1.0 page 49

 TUOS regional indicators for CAC and SAC network tariffs

Transmission Connection Point TNI TUOS Region

Mackay QMKA T2

Moura QMRA T1

Middle Ridge QMRG T1

Broadlea QMRH T1

Moranbah 11 kV QMRL T1

Moranbah 66 kV QMRN T1

Mount Isa Mt Isa T4

Nebo QNEB T2

Newlands QNLD T2

Oakey QOKT T1

Pandoin QPAL T1

Pioneer Valley QPIV T2

Proserpine QPRO T2

Rockhampton QROC T1

Ross QROS T2

Stony Creek QSYC T2

Teebar Creek QTBC T1

Tangkam QTKM T1

Tully QTLL T3

Tarong 66 kV QTRL T1

Turkinje 132kV QTUH T3

Turkinje 66 kV QTUL T3

Townsville East QTVE T2

Townsville South QTVS T2

Woolooga QWLN T1

Woree QWRE T3

Boat Creek QYAE T1

Bulli Creek QBLK T1

Kemmis QEMS T2

Wandoan South QWSH T1

2018–19 Network Tariff Guide v1.0 page 50

Appendix 9: Eligible apparatus for controlled load network
tariffs

Approval of apparatus to connect to controlled load network tariffs is at the absolute discretion of Ergon
Energy. The apparatus that Ergon Energy generally accepts to connect to our controlled load network
tariffs is described below. Further information on the application of charges and tariff conditions for the
controlled load network tariffs is set out in Appendix 1.

Volume Night Controlled

The table below outlines the apparatus that can be accepted on our Volume Night Controlled network
tariff.
Table A9.1: Eligible apparatus – Volume Night Controlled

Apparatus Technical specification and requirements for connection to the tariff

Electric storage water heater  Electric storage water heaters with thermostatically controlled or
continuously operating heating units and which comply with the
construction and performance requirements of Australian Standard
1361 or 1056 or previous Standards superseded by these two
Standards or similar electric water heaters which are approved for
connection by Ergon Energy.

 Where the heating unit rating exceeds 1,800 watts, it shall not
exceed 13.5 watts per litre of heat storage volume for heat
exchange type water heaters or 15.5 watts per litre of rated hot water
delivery for other storage type water heaters.

 The following conditions apply to any booster heating unit fitted:

o its rating shall not exceed that of the main heating unit;
o it shall be connected so as to prevent it being energised
simultaneously with the main heating unit;
o electricity used by the booster heating unit shall be metered under
and charged at the tariff applicable to primary supply at the
premises concerned;
o it shall be located in accordance with the provisions of the above
Standards.
Solar-heated water heaters  Where the electric heating unit rating exceeds 1,800 watts, it shall not
exceed 13.5 watts per litre of storage tank capacity.

 If a circulating water pump is fitted to the system, continuous supply

will be available to the pump, and electricity used shall be metered
under and charged at the tariff applicable to primary supply at the
premises.

Solar-heated water heaters with  Where the electric heating unit rating exceeds 1,800 watts, it shall not
one-shot boost exceed 13.5 watts per litre of storage tank capacity.

 If a circulating water pump is fitted to the system, continuous supply

will be available to the pump, and electricity used shall be metered
under and charged at the tariff applicable to primary supply at the

2018–19 Network Tariff Guide v1.0 page 51

 premises.

 If a current held changeover relay is fitted to the solar-heated water

heater to deliver a one-shot boost at times when supply is not available
under this tariff, such supply is subject to thermostatically controlled
switch off.

 Electricity used during operation of the one-shot boost shall be metered

under and charged at the tariff applicable to primary supply at the
premises.

 The cost of supply and installation of a current held changeover

relay, is the responsibility of the customer.

Heat pump water heaters  Where the rated electrical input, as shown on the nameplate, exceeds
1,800 watts, it shall not exceed 13.5 watts per litre of storage tank
capacity.

Heatbanks  Booster heating units are permitted in heat banks in which the main
element rating is at least 2 kilowatts. The following conditions apply to
any booster heating unit fitted:

o its rating shall not exceed 70 percent of the rating of the main
heating unit;
o it shall be connected so as to prevent it being energised
simultaneously with the main heating unit;
o electricity used by the booster heating unit shall be metered under
and charged at the tariff applicable to primary supply at the
premises.
Pool filtration systems  Pool filtration systems connected by means of a socket outlet approved
by Ergon Energy may be allowed to be connected to this tariff.

Electric vehicles  Electric vehicles may be allowed to be connected to this tariff at the
discretion of Ergon Energy.

Other eligible apparatus  Other loads may be allowed to be connected to this tariff at the
discretion of Ergon Energy, with the exception of:

o arc or resistance welding plant;

o where apparatus is duplicated to obtain supply on a different tariff
for the same purpose during the restricted (off-supply) period.

Volume Controlled

The table below outlines the apparatus that can be accepted on our Volume Controlled network tariff.
Table A9.2: Eligible apparatus – Volume Controlled

Apparatus Technical specification and requirements for connection

Electric storage water heaters  Electric storage water heaters with thermostatically controlled or
continuously operating heating units and which comply with the
construction and performance requirements of Australian Standard
1361 or 1056 or previous Standards superseded by these two
Standards or similar electric water heaters which are approved for

2018–19 Network Tariff Guide v1.0 page 52

 connection by Ergon Energy.

 Where the heating unit rating exceeds 1,800 watts, it shall not
exceed 13.5 watts per litre of heat storage volume for heat
exchange type water heaters or 15.5 watts per litre of rated hot water
delivery for other storage type water heaters.

Solar-heated water heaters  Where the electric heating unit rating exceeds 1,800 watts, it shall not
exceed 13.5 watts per litre of storage tank capacity.

Heat pump water heaters  Where the rated electrical input, as shown on the nameplate, exceeds
1,800 watts, it shall not exceed 13.5 watts per litre of storage tank
capacity.

Pool filtration system  Pool filtration systems connected by means of a socket outlet approved
by Ergon Energy may be allowed to be connected to this tariff.

Electric vehicles  Electric vehicles may be allowed to be connected to this tariff at the
discretion of Ergon Energy.

Other eligible apparatus  Other loads may be allowed to be connected to this tariff at the
discretion of Ergon Energy, with the exception of:

o arc or resistance welding plant;

o where apparatus is duplicated to obtain supply on a different tariff
for the same purpose during the restricted (off-supply) period.

2018–19 Network Tariff Guide v1.0 page 53

Glossary

Abbreviations

ACS Alternative Control Service

AD Authorised demand
AER Australian Energy Regulator
ATMD Any Time Maximum Demand
CAC Connection Asset Customer
DH Demand High Voltage
DL Demand Large
DLF Distribution Loss Factor
DM Demand Medium
DNSP Distribution Network Service Provider
DS Demand Small
DUOS Distribution Use of System
EDNC Electricity Distribution Network Code
EG Embedded Generator
Ergon Energy Ergon Energy Corporation Limited
Excess kVAr Excess reactive power
FiT Feed-in tariff
GWh Gigawatt hour
IBT Inclining Block Tariff
ICC Individually Calculated Customer
kV Kilovolt
kVA Kilovolt-ampere
kVAr Kilovolt-ampere reactive
kW Kilowatt
kWh Kilowatt hour
LRMC Long Run Marginal Cost
MWh Megawatt hour
NEM National Electricity Market
NER National Electricity Rules
NMI National Metering Identifier
p.a. Per annum
PV Photovoltaic
SAC Standard Asset Customer
SBS Solar Bonus Scheme
SCS Standard Control Service
STOUD Seasonal Time-of-Use Demand
STOUE Seasonal Time-of-Use Energy

2018–19 Network Tariff Guide v1.0 page 54

TCP Transmission Connection Point
TNI Transmission Node Identifier
TNSP Transmission Network Service Provider
TOU Time-of-Use
TUOS Transmission Use of System

2018–19 Network Tariff Guide v1.0 page 55

Definitions

A type of charge (charging parameter) included in Ergon Energy’s network

tariff structures to signal the effect demand has on the shared network and
Actual demand charge system augmentation. For ICC, CAC and SAC Large the demand used in
the calculation of the charge is the maximum demand recorded in any half
hour period each month.
A distribution service provided by Ergon Energy that the AER has classified
Alternative Control as an Alternative Control Service under the NER. Includes fee based
Service services, quoted services, Default Metering Services and Public Lighting
Services.
Is the amount of energy consumed by the customer irrespective of the time
Any time energy
of day.
Any Time Maximum Is the maximum half hourly demand for a customer that occurs at any time
Demand (ATMD) within a specified period.
The AER is an independent statutory authority that is part of the Australian
Competition and Consumer Commission. The AER is responsible for the
economic regulation of electricity networks in the National Electricity Market
Australian Energy
(NEM). It also monitors the wholesale electricity and gas markets and is
Regulator (AER)
responsible for compliance with and enforcement of the National Electricity
Law, NER, National Gas Law and Rules, and the National Energy Retail
Law and Rules.
The amount paid to an eligible EG for the locational component of
prescribed TUOS services that would have been payable by Ergon Energy
Avoided TUOS to a TNSP had the EG not been connected to the distribution network. The
methodology Ergon Energy uses to comply with the NER is set out in the
Information Guide for Standard Control Services Pricing.
Means a customer who is not a residential customer (as defined in the
Business customer
Queensland EDNC).
A type of charge (charging parameter) included in Ergon Energy’s network
Capacity charge tariff structures. The capacity charge is reflective of the costs associated
with the network capacity required by a customer on a long term basis.
A capital contribution is a prepayment for the provision of direct control
services. A capital contribution may be charged to a customer if the new
connection or modification for an existing connection is required to the
Capital contribution network to accommodate the connection/modification. Ergon Energy’s
Connection Policy sets out circumstances in which a capital contribution
may be required and details how the capital contribution to be charged to a
customer is calculated.
Charging parameter The constituent elements of a tariff (as defined in the NER).
The physical link to or through a transmission network or distribution
Connection
network.

2018–19 Network Tariff Guide v1.0 page 56

 Typically reflects those customers:
 with required capacity above 1,500 kVA
 with energy consumption typically greater than 4 GWh per annum (p.a.)
(but less than 40 GWh p.a.), or
 with required capacity below 1,500 kVA where:
o a customer has a dedicated supply system which is quite different
and separate from the remainder of the supply network, or
Connection Asset
o inequitable treatment of otherwise comparable customers will arise
Customer (CAC)
from the application of the 4 GWh p.a. thresholds.
The CAC group is further subdivided into categories based on voltage levels
as follows:
 66 kV – connected to either a 66 kV substation or a 66 kV line
 33 kV – connected to either a 33 kV substation or a 33 kV line
 22/11 kV Bus – connected to either a 22 kV or 11 kV substation
 22/11 kV Line – connected to either a 22 kV or 11 kV line.
Those components of a transmission or distribution system which are used
to provide connection services. Connection assets are those assets
Connection assets required to connect an electrical installation to the shared network and are
all the assets from the connection point back up to and including the
network coupling point.
The agreed point of supply established between the Network Service
Connection point Provider(s) and another Registered Participant, Non-Registered Customer
or franchise customer.
A type of charge (charging parameter) included in Ergon Energy’s network
Connection unit charge tariff structures to recover the specific value of investment Ergon Energy
made in contributing the costs of the connection assets for that customer.
A person or entity that receives, or wants to receive a supply of electricity
Customer
for a premise, or any other distribution service from Ergon Energy.
A type of Alternative Control Service. Relates to:
 Type 5 and 6 meter installation and provision (before 1 July 2015)
Default Metering  Type 5 and 6 meter installation and provision (on or after 1 July 2015),
Services where the replacement meter is initiated by Ergon Energy as a
distributor
Type 5 and 6 metering maintenance, reading and data services.
The amount of electricity energy being consumed at a given time measured
Demand in either watts (W) or volt amperes (VA). The difference between the two is
the power factor.
The AER’s Distribution Determination sets the revenue and pricing control
Distribution
regime that Ergon Energy must comply with for the current regulatory
Determination
control period (i.e. 2015–20).
The electrical system used to transport electricity from the high voltage TCP
Distribution network
to distribution network users.
Component of the network tariffs which covers costs associated with
Distribution Use of
connection services and/or use of the distribution network for the
System (DUOS) charge
conveyance of electricity (i.e. Standard Control Services).

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 Those areas where the network users are supplied from the distribution
system connection to the national grid and have a relatively low distribution
East Zone
cost to supply. The local government areas covered by the East Zone are
located in this document.
EGs are those network users that export energy into the distribution system,
except for network users with micro-generation facilities of the kind
contemplated under Australian Standard (AS) 4777.1 – 2005.
Embedded Generator EGs are separated into two categories:
(EG)  EGs that are connected to the distribution system and only generate
into the distribution system
 EGs that are connected to the distribution system generate and take
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load from the system.
The amount of electricity consumed by a consumer (or all customers) over a
Energy period of time. Energy is measured in terms of watt hours (Wh), kilowatt
hours (kWh), megawatt hours (MWh) or gigawatt hours (GWh).
A type of charge (charging parameter) included in Ergon Energy’s network
Excess reactive power tariff structures which is applied against the kVAr used by a customer that
charge (Excess kVAr) exceeds what they would be entitled to use at their minimum compliant
power factor at authorised demand.
A type of Alternative Control Service which Ergon Energy undertakes at the
request of an identifiable customer, retailer or appropriate third party which
Fee based services
is levied as a separate charge. The costs of providing the service (and
therefore price) can be assessed in advance of the service being requested.
A type of charge (charging parameter) included in Ergon Energy’s network
Fixed charge tariff structures which is levied on a fixed dollar amount per day or fixed
dollar amount per day per device (as is the case for unmetered supply).
Gigawatt hour (GWh) 1,000,000 kilowatt hours.
High Voltage (HV) Refers to parts of the network that are 11 kV or above.
Inclining Block Tariff A type of network tariff where the price per kWh increases as consumption
(IBT) thresholds are crossed during a particular time period.
Typically reflects those customers:
 with energy consumption typically greater than 40 GWh p.a., or
 with energy consumption lower than 40 GWh p.a. where:
o a customer has a dedicated supply system which is quite different
Individually Calculated and separate from the remainder of the supply network
Customer (ICC) o there are only two or three customers in a supply system, making
average prices inappropriate
o a customer is connected at or close to a TCP, or
o inequitable treatment of otherwise comparable customers will arise
from the application of the 40 GWh p.a. thresholds.

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The load side will be classified as an ICC, CAC or SAC, and a separate network tariff will apply.

2018–19 Network Tariff Guide v1.0 page 58

 In respect of a jurisdictional scheme, the amounts a DNSP is required under
the jurisdictional scheme obligations to:
(a) pay to a person
(b) pay into a fund established under an Act of a participating
Jurisdictional scheme
jurisdiction
amount
(c) credit against charges payable by a person, or
(d) reimburse a person,
less any amounts recovered by the DNSP from any person in respect of
those amounts other than under the NER (as defined in the NER).
Jurisdictional scheme Component of the network tariff which passes through jurisdictional scheme
charges amounts.
1,000 Volt-Ampere which is a measure of the apparent power flow which is
kVA
a measure of the total capacity required to supply a customer’s load.
kVAr 1,000 Volt-Ampere reactive which is a measure of reactive power.
1,000 Watts which is a measure of the real component of power being
kW
consumed by the consumer’s load.
Measure of the percentage of time a load is used in any given period.
Load factor Loads used 24 hours per day; 7 days a week have a load factor of one (1)
or 100 per cent.
Low Voltage (LV) Refers to the sub 11 kV network.
The maximum demand recorded at a customer’s individual meter or the
maximum demand placed on the electrical distribution network system at
Maximum demand any time or at a specific time or within a specific time period, such as a
month. Maximum demand is an indication of the capacity required for a
customer’s connection or the electrical distribution network.
Megawatt hour (MWh) 1,000 kilowatt hours
A micro embedded generating unit contemplated under Australian Standard
Micro embedded
(AS) 4777.1 – 2005. Typically customers connecting a micro embedded
generating unit (micro
generating unit are classified as Standard Asset Customers for network
EG Unit)
pricing purposes.
Those areas supplied from the isolated Mount Isa system. This zone is not
connected to the national grid and would normally be excluded from the
application of the NER. However, under the Electricity – National Scheme
Mount Isa Zone (Queensland) Act 1997, the Queensland Government has transferred
responsibility for the economic regulation of the Mount Isa-Cloncurry supply
network to the AER. The local government areas covered by the Mount Isa
Zone are located in this document.
National Electricity The interconnected electricity grid covering Queensland, New South Wales,
Market (NEM) Victoria, Tasmania, South Australia and the Australian Capital Territory.
National Electricity Rules made under the National Electricity Law which govern the operation
Rules (NER) of the NEM.
National Metering
A unique number assigned to each metering installation.
Identifier (NMI)
The maximum demand (kVA) that the distribution network can provide for at
Network capacity
any one time.

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 Refers to the price (or tariff) that Ergon Energy sets to recover costs
associated with the customer’s connection and use of the distribution and
Network tariff
transmission network, and jurisdictional scheme amounts. Network tariffs
comprise DUOS, TUOS and jurisdictional scheme charges.
There are four network user groups included in Ergon Energy’s network
tariff structures – ICCs, CACs, SACs and EGs. For the purposes of our
Network user
network pricing documents, the term ‘network user’ refers to both a
‘customer’ and an ‘EG’.
Power factor The ratio of kW to kVA at a metering point during a defined period.
A type of Alternative Control Service. Relates to the provision, construction
and maintenance of public lighting assets owned by Ergon Energy, and
Public Lighting Services
emerging public lighting technology. Also encompasses public lighting exit
fees.
Includes the following lantern types:
 Metal Halide – above 125 W
Public lights – Major
 Mercury Vapour – above 125 W
 High Pressure Sodium – above 100 W.
Includes the following lantern types:
 Compact Fluorescent – all wattages
 Fluorescent – all wattages
 Metal Halide – up to and including 125 W
Public lights – Minor  Incandescent – all wattages
 Low Pressure Sodium – all wattages
 LED – all wattages
 Mercury Vapour – up to and including 125 W
 High Pressure Sodium – up to and including 100 W.
A type of Alternative Control Service. Similar to fee based services, but
they are priced on application as the nature and scope of these services is
Quoted services
variable and the cost (and therefore price) is specific to the individual
requestor’s needs.
Means a customer who acquires electricity for domestic use (as defined in
Residential customer
the Queensland EDNC).
The Total Annual Revenue, as determined using the revenue cap formula
Revenue cap
set out in the Distribution Determination.
SAC Large Those SACs that typically use between 100 MWh p.a. and 4 GWh p.a.
SAC Small Those SACs that typically use less than 100 MWh p.a.
Typically reflects those customers with annual energy consumption below
4 GWh p.a. Includes customers with micro-generation facilities (such as
small scale photovoltaic generators) of the kind contemplated under
Standard Asset AS 4777.1 – 2005.
Customer (SAC) The SAC group is further subdivided into network tariff categories based on
whether:
 the customer’s connection is metered or unmetered
 the customer’s consumption relates to residential or business use

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  the customer is taking supply at high voltage or low voltage
 the customer’s consumption is above or below 100 MWh p.a.
 the customer has a meter installed capable of recording demand
 the customer’s supply is capable of being controlled by Ergon Energy.
A distribution service provided by Ergon Energy that the AER has classified
as a Standard Control Service under the NER. Includes network services,
Standard Control some connection services (including small customer connections) and Type
Service 7 metering services. Ergon Energy recovers our costs in providing
Standard Control Services through the DUOS component of network tariffs
which are billed to retailers.
Summer The months of December, January and February.
A class of customers for one or more Direct Control Services who are
Tariff class
subject to a particular tariff or particular tariffs (as defined in the NER).
The amount by which a SAC Large customer’s metered monthly actual kW
maximum demand is adjusted for the purposes of calculating the demand
component of their network tariff.
The actual demand charge for any time demand tariffs and the peak and
off-peak demand charges for the STOUD tariffs are applied to the kW
Threshold demand amount by which the recorded monthly maximum demand exceeds the
relevant threshold. This demand may occur at any time during the month
(actual demand charge and off-peak demand charge) or during a set peak
period (peak charge).
Where the monthly metered maximum demand is less than the demand
threshold, the chargeable demand for that month is set to zero.
A type of network tariff where the price per kWh varies according to when
Time-of-Use (TOU) the consumption occurs. The TOU tariff may apply a different price during
peak and off-peak periods.
Component of the network tariff which passes through costs associated with
Transmission Use of use of the transmission network. This includes designated pricing proposal
System (TUOS) charge charges as defined under the NER plus charges levied on Ergon Energy in
relation to Chumvale and three Powerlink connection points.
A customer who takes supply where no meter is installed at the connection
Unmetered
point.
A type of charge (charging parameter) included in Ergon Energy’s network
tariff structures which is calculated using the customer’s metered energy
Volume charge (kWh) consumption. It may be based on a flat rate, an inclining block or
TOU charging structure (depending on the customer’s applicable network
tariff).
Those areas outside the East Zone and connected to the national grid,
which have a significantly higher distribution cost of supply than the East
West Zone
Zone. The local government areas covered by the West Zone are located
in this document.

2018–19 Network Tariff Guide v1.0 page 61

 Contact information
General Manager Regulation and Pricing
Ergon Energy Corporation Limited
PO Box 264
BRISBANE QLD 4005
Telephone: 13 74 66
Email: [email protected]

Contact information

Manager Regulatory Determination and Pricing

Ergon Energy Corporation Limited

VALLEY
PO BoxQLD
264

FORTITUDE VALLEY QLD 4006

Telephone: 13 10 46
Email: [email protected]

62
Contact information

Manager Regulatory Determination and Pricing

Ergon Energy Corporation Limited

PO Box 264