Brokering win-win deal with customers for saving power

When Sarah’s Air Conditioner Became Her Money-Maker

Last January, as Melbourne sweltered in a 42°C heatwave, Sarah Chen did something unexpected—she earned money by using less electricity.

While her neighborhood leaned heavily on air conditioners, Sarah received a simple text:“Peak event starting now. Your target: reduce usage by 2kW for the next 2 hours. Current reward: $15 bill credit.”

Curious, she turned up her thermostat slightly, switched off her pool pump, and delayed running the dishwasher. Two hours later, another message arrived:

“Congratulations! You’ve earned $15 in bill credits and helped ease strain on the electricity grid.”

Sarah had just joined a new kind of energy movement—one that rewards people for using less, not more.

The Program Behind the Shift

This initiative is part of a partnership between Energy Australia and Jemena, the electricity distributor for Melbourne’s northern and western suburbs. Their aim: manage peak electricity demand through customer participation, not just infrastructure expansion.

During extreme heat, household electricity usage can triple, placing enormous stress on the grid. Traditionally, utilities responded by building more capacity. But this program flips the model—inviting customers to be part of the solution.

How It Works

  • Customers receive a text message during a peak demand event, showing their current usage and a personalized reduction target.
  • The message includes tips to lower usage—simple actions like delaying appliance use or adjusting temperature settings.
  • If they meet their target, they’re rewarded automatically with bill credits.
  • Targets are personalized to each household’s habits, making participation accessible and achievable.

Over six months, Sarah earned over $180 in credits. What began as a small experiment turned into a household habit—with her teenage daughter even leading the charge during event days.

“I used to think of the power company as just another bill,” Sarah says. “Now it feels like we’re working together.”

Boundaryless Thinking Takeaway

When you stop treating customers as passive users and start treating them as partners, business, society, and the planet all benefit.

Imagine if other industries followed suit:

  • Healthcare: Reward preventive habits before illness happens.
  • Transport: Offer incentives for off-peak commuting instead of building more roads.
  • Finance: Celebrate and reward good financial habits, not penalize missteps.

Boundaryless Thinking Thought
Innovative program with right partners help all stakeholders in electricity value chain through power savings.

Reference
https://utilitymagazine.com.au/households-could-save-with-demand-response-program/
https://greenbe.com/https://jemena.com.au/about/newsroom/media-release/power-changers-%E2%80%93-new-electricity-trial-in-victoria
https://jemena.com.au/getattachment/About/Innovation/Power-Changers-pilot/Power-Changers-Infographic-End-of-trial.pdf.aspx