What is RMD in Electricity Bill?

I was really concerned about my rising electricity bills for the past few months. It was then that my friend suggested that understanding my energy statement is the first step in controlling my energy use and lowering expenditures because electricity rates are rising. And for that, I needed to know what is RMD in electricity bill. A number known as "Recorded Maximum demand" is frequently displayed. But why should you care about what it means? I will tell you.

There are two methods for metered and paid electricity use:

• Total energy used (kWh) during a particular month.

• Maximum demand (kW or kVA), often known as the maximum power value within a given time period, is typically the average of 15 minutes (though other durations may also apply) reached throughout the billing period.

What is RMD meaning in electricity bill and how is commercial electricity demand charges calculated?

A sliding window or fixed demand calculation, based on customer usage, is used to determine an MD fee, which changes depending on the tariff policy and is computed as the average power utilised for the defined billing interval (10, 15 or 30 min). Demand charges will account for a lot more of your costs if your facilities frequently utilise a lot of electricity in brief bursts. You will significantly pay more as a result of your peaks in usage. Let's think about the following examples.

Company X consistently needs 100 kW during a 720-hour month.

Energy consumption is 72,000 kWh (100 kW x 720 hours); utility costs are Rs.11 per kWh; energy costs are Rs. 792000; demand costs are Rs.350 per kVA per month.

As their largest power requirement for any demanded interval was 100 kW, they would also pay Rs.38888.85 in-demand costs for the month (Rs.3508 x 111.111 kVA).

Here, demand charges amount to Rs. 830888.85, or 4.91%, of Company X's total electricity bill.

Over the course of the month, Company Y uses less electricity: 10 kW per hour for 719 hours.

To start and bring their equipment online, they do utilise 100 kW for one hour each month.

Since their maximum power requirement was likewise 100 kW, their monthly energy usage is 7,190 kWh + 100 kWh = 7,290 kWh; at Rs.11 per kWh, energy costs are Rs.80190; demand charges are Rs.38888.85; even though this peak power need only lasts for a very short portion of the month.

Here, demand charges amount to Rs. 119078.85, or 48.49%, of Company Y's total power bill.

You cannot immediately make adjustments to your energy efficiency. Start off by taking the essential steps in order to lower your demand charges.

• To lower the immediate power, disconnect non-critical loads, space them out over different time periods, and avoid connecting loads at once.

• Obtain real-time monitoring of your energy data, which will allow you to see when your electricity demand is high and adjust your strategies for reducing those peaks as well as the demand costs.

• Predict MD and load shedding if the contracted demand is exceeded (CD)

Therefore, MD may be brought under control and prevented from paying hefty fines thanks to real-time energy monitoring, which also reduces the amount of time and labour needed.

Now you know what is RMD in electricity bill clearly.