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Newcastle Herald
Newcastle Herald
National
Ethan Hamilton

Just like water restrictions: call to cut power use during peak demand

What is 'grid stability and how is your electricity bill calculated? | June 9, 2022 | Cosmos Magazine

AS EASTERN states face energy reserve shortfalls, caused in part by rising power prices, a Hunter social research expert says households need to rethink the way they consume power.

Comparing times of limited energy supply to drought, Director of the Institute for Regional Futures at the University of Newcastle Professor Roberta Ryan said "when there isn't enough water, people are more than willing to reduce consumption".

"We have data that shows that when water restrictions are lifted following a drought, the low level of water use is sustained. People have that mindset that water is a precious commodity," Professor Ryan said.

"Following the same idea, we all have to support the reduction of energy use. Particularly in periods of peak demand."

On Tuesday morning, the Australian Energy Market Operator (AEMO) confirmed wholesale electricity prices had reached the threshold to trigger a $300 per megawatt hour price cap in Queensland, NSW, Victoria and South Australia.

The price cap caused some generators to "revise their market availability". Combined with some generation units being offline due to maintenance, AEMO said this contributed to forecast supply shortfalls.

Less stress: Professor Roberta Ryan says households should reconsider their energy use during times of high demand to take stress off the system. Picture: Max Mason-Hubers

With the focus currently on energy reserves, Professor Ryan said, there is an opportunity for retailers to educate the community about "demand management".

"One of the benefits of a crisis, whether it's COVID or a drought or energy, is that it creates fertile ground for education," Professor Ryan said.

"We have seen during the pandemic that the community is really willing to step up and that the majority of people are happy do the right thing by other people.

"If you include financial incentives like charging people less at non peak periods, there is a lot of opportunity to address some of this energy crisis through consumer behavior."

While there is a role for government in education, the onus is an energy retailers to educate consumers about the impact of their usage patterns and how better to distribute the load Professor Ryan said.

"Some of these things are already in place like making off-peak consumption cheaper. You have to make it worth the effort for households to change their patterns," she said.

"If you use less power, your power bills are cheaper. Think about putting on a jumper rather than the heating or putting some rugs on your timber floor. These things make a difference."

Energy Consumers Australia (ECA) is a group representing residential and small businesses power users across the country. Last year ECA, in partnership with Monash University, commissioned the Energy Consumer Behavior Survey which found that only 8 per cent of consumers would be unwilling to change their energy use at times of high demand.

"This suggests that there is a latent willingness in the majority of households to moderate their energy use during times of system stress," Energy Consumers Australia Chief Executive Lynne Gallagher said.

"Tapping into this reservoir of goodwill in ways that do not negatively impact consumers should be a key goal for energy system leaders and decision makers."

ECA suggests using appliances off peak and making small adjustment to weatherproof homes are the best ways to reduce demand.

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