When your electricity bill is generated. You look at the amount and wonder how much my bill is. I did some research about the various charges levied on the customer by the electricity board. Read below to know what is demand charges in electricity bill.
What are demand charges in electricity bill ?
As the name suggests, Demand charges can ebd explained as the additional fees that utilities charge non-residential or commercial customers for maintaining constant supply of electricity. Maximum charge or the term maximum demand is the highest peak of electricity demand recorded by a meter during a 30-minute interval in a month.
The amount which is paid by the customer is based on the recorded demand charge in kilowatt (kW) multiplied by the respective MD rate.
In short,the highest cumulative peak demand is the demand charge. If you want to reduce your electricity bill, I would highly recommend you try to decrease your collective demand charge.
The formula to calculate maximum load is
Total Connected Load x Diversity = Maximum Demand
I hope now you have clarity about what is demand charges in electricity bill.
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Authors Of The Question
what is demand charges in electricity bill
ramit
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2 Year
2022-01-03T10:34:50+00:00 2022-01-04T11:19:44+00:00Comment
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