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Understanding Demand Charges and Your Electricity Provider

Posted on 2023-04-13 17:06:28 by iNF
Energy Electricity demand charges energy bill electricity provider energy management
Understanding Demand Charges and Your Electricity Provider

Electricity bills can be confusing, especially when it comes to demand charges. In this article, we'll break down what demand charges are and how you can manage them to save money on your electricity bill.

What Are Demand Charges?

Demand charges are fees that your electricity provider charges based on your highest electricity usage during peak times. These charges are separate from your energy usage charges and can add up quickly if you're not careful.

How Are Demand Charges Calculated?

Demand charges are calculated based on your peak electricity usage during a billing cycle, usually measured in 15-minute intervals. The highest peak usage during that time is used to determine your demand charges for the entire billing cycle.

Why Are Demand Charges Important?

Demand charges can make up a significant portion of your electricity bill, especially if you have high peak usage. Managing your demand charges can help lower your overall electricity costs.

Tips for Managing Demand Charges

Here are a few tips for managing your demand charges: 1. Shift your electricity usage to off-peak times, when demand charges are lower. 2. Implement energy-saving measures, such as upgrading to energy-efficient appliances and using smart thermostats. 3. Consider installing a battery backup system to store excess energy during off-peak times.

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