Dynamic Pricing Solution to Australian Energy Woes
The Queensland company that pioneered dynamic variable pricing believes the technology can go a long way towards solving the supply and price problems confronting the Australian power industry.
AutoYield can adjust prices in real time, based on supply and demand, as a cloud-based plugin to a range of industries.
CEO Martin McConnachie says AutoYield’s revolutionary system will allow Australia to catch-up with advanced European markets in maximising the efficiency and value of energy supply.
“As with any user-pays system we can very easily connect to the power supply information retained by the provider and we can vary the rate according to use,” Mr McConnachie said.
Dynamic pricing can reduce the cost of energy supply, boost efficiency and mitigate price volatility according to market conditions at any one time.
“The United Kingdom, France, Sweden and The Netherlands are leading the world with real time energy pricing and now is the right time for Australia to follow their lead,” Mr McConnachie said.
“It’s already been proven that an array of customer incentives can by promoted by flexible tariffs – aimed at decreasing consumption in peak times.”
The success of dynamic pricing in the Australian energy market would also be enhanced by the greater use of smart meters. They are now used by 100 percent of households in Sweden, where households have experienced an average individual peak demand reduction between 9.3% and 7.5%.
The Swedish demand-based tariff consists of a fixed access charge and a variable distribution charge, based on the average of the five highest hourly meter readings during peak hours, while electricity distribution is free of charge in the off-peak hours.
“Smart meters, like solar panels, are certainly worth the one-off cost of installation relative to the long-term savings to be made,” Mr McConnachie said.
“The days of a manual intervention, when or if a mechanical meter can be read, should be over.
“Australia should be seizing on available technology as the solution to easing the grid load, while giving consumers a genuine chance to modify consumption and cut their bills significantly.
“Perhaps it will be the case that the smart meter installation can be accelerated by splitting the cost between all those who stand save from it, including the distribution system operator.”
New South Wales was the first jurisdiction nationally to start a competitive metering rollout, aiming initially in 2016 to increase the number of smart meters from 40,000 to more than 130,000. Late last year The Australian Energy Market Commission announced a framework for the competitive provision of advanced meters for residential and small business consumers, who were still using “1950s style electricity meters with limited functionality.”
Inquiries & Interview requests: Katherine McConnachie+61 7 5667 3414