What is maximum demand ?

Electricity rates are increasing, so understanding your energy bill is the first step in controlling your energy use and reducing costs.

The picture  shown is  “maximum demand” . 

Electricity consumption is measured and charged in two ways:

Total consumption (kWh) for a given month.

Peak demand (kW or kVA) means the maximum power value over a given period of time, typically averaging 15 minutes (may vary) during the billing period.

How are commercial electricity demand charges calculated?

The Maximum Demand charge varies with the rate policy and is calculated as the average power used during the billing interval (10, 15 or 30 min) defined by a fixed demand calculation based on sliding windows or customer usage. If your facilities use high power in a short period of time, demand charges will make up a large part. Significantly, you pay more due to spikes in your utility. Consider the following examples

How to reduce maximum demand  ?

Don’t rely on energy efficiency adjustments that you can make right away. To lower your demand charges, start with a few necessary steps.

  • At different time intervals, disconnect non-critical loads and do not connect loads at the same time to reduce instantaneous power.
  • Gain visibility into your energy data through real-time monitoring, showing you when your electricity demand is high and allowing you to change methods to reduce those spikes, including demand charges.Estimation of Maximum Demand  and Load Shedding if contract demand (CD) is exceeded

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