2. Electricity Act 1993 — Section 158A tariff order

Where a large corporate customer requires a reduction in contract demand, they must give twelve (12) months written notice to the distribution company serving the site, as stated in Attachment 10 of the tariff order.

The electricity distribution company must then notify the customer, in writing, within the twelve (12) month period of the new contract demand. However, following the installation by the customer of energy management equipment that has been approved by the distributor, or implementation of a demand management initiative, also approved by the distributor, this twelve (12) month notice period, may be reduced at the discretion of the distributor.

The contract demand requested by the customer is the highest actual demand recorded in the previous twelve (12) months, or the minimum chargeable demand of 120/250 kW (or kVA).

3. Green power

Green power is an alternative to coal-generated electricity. It is shown as a proportion of your consumption on your electricity bill. Green power is generated from clean, renewable energy sources, such as solar, wind, biomass, wave and hydropower.

When you buy green power from your electricity supplier, renewable energy is purchased on your behalf. It is distributed to your business through the grid, in the usual way. By agreeing to pay a small additional charge on your electricity bill, you are replacing conventional electricity with clean, renewable energy.

Energy suppliers use a variety of brand names to identify their renewable energy schemes. A national accreditation program has been developed to ensure that green power offered by electricity suppliers is generated from government approved renewable energy sources. The program regularly audits suppliers to ensure compliance.

Prices of green power will vary between suppliers, but will usually cost an additional two (2) to four (4) cents per kWh. You can nominate a certain proportion of your consumption on which to pay the green power premium.

(Extract: Energy and Greenhouse Management Toolkit, State Government of Victoria)