People find it very hard to understand electricity bills and their components. To make plans for energy savings, it is important to learn about them. Let me tell you what are demand charges in electricity bill:
Demand charges are additional fees that your electricity provider charges commercial or industrial customers to maintain a constant supply of electricity. Generally, these charges amount to a considerable sum of money that companies have to pay on monthly electricity bills.
The demand charges could be as much as 50 percent of the total electricity bill or even more. In many cases, this fee could be higher than the energy portion of the electricity bill itself.
Demand = The max. amount of energy an organization uses at any given point in a billing cycle.
Let me explain this using a simple example:
Let’s say you have two buckets filled with 5 gallons of water. Bucket #1 was filled at 1 gal per minute while bucket #2 at 5 gal per minute. Even though the same amount of water was used to fill each bucket, the time it took to fill bucket #1 was five times that of bucket #2.
So, the demand for bucket #2 was also five times higher than the demand for bucket #1. This is how demand and demand charges work in electricity consumption as well.
You can think of it as gal per minute per unit of time or kilowatt-hours per unit of time.
I am attaching the PDF for the demand charge electricity bill in Maharashtra with this answer for your reference.
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What is demand charges in electricity bill in Maharashtra?
Kartik
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2 Year
2021-12-29T17:51:08+00:00 2021-12-30T17:48:36+00:00Comment
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