What is Demand?

Demand is the highest average kilowatts reached and maintained on a 15-to-30-minute interval within a billing period.

If your demand reached 50kW, for example, and stays there for 15 minutes, the meter needle remains at 50kW unless your demand exceeds that level.

If your demand later reached 55 kW and stays there for 15 minutes, the needle will then stay at 55 kW. This is known as your peak demand.

The new index point is maintained, even when you use electricity below 55 kW, until the meter reader comes to record the demand and resets the meter back to zero.

Why We Charge for Demand

To meet your peak load we need to maintain a vast array of equipment including transformers, wires, substations and generating stations on constant standby. We need enough equipment and it must be large enough to meet your peak consumption periods.

Billing based on demand values ensures that we have the right equipment to support larger loads and provide the needed power for your business’ operation.