Lower South Island - Control Period Demand charges?
What is it?
Control Period Demand (CPD) is a fixed charge that lines company Aurora charges some of its customers (mostly, but not always, businesses). Aurora calculates each customer’s CPD value based on the electricity they used over peak periods from May to August.
Unfortunately we can’t afford to absorb these costs, so they’re passed directly on to you.
What’s behind it?
The idea is to give customers the incentive to save electricity at times of high demand, generally during cold winter weekdays in the morning and evening. Customers with high winter usage mean Aurora has to invest in additional capacity on its network to cope with peak usage during winter.
Aurora reviews each customer’s CPD charge on 1 April based on the previous year’s winter usage. This means that if your winter usage was substantially lower than it was the year before, you’re likely to be charged less (and vice versa if your usage was higher in comparison). If your winter usage was similar to the year before’s, you may see no change in your CPD charge.