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Energy Business
Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor
·Posted in Energy Business
Tue, Aug 20

Contracted demand

Contracted demand

The demand billed by electricity utilities is extremely rigorous and even reasonably complex.

It is the maximum between the registered (physically) and the contracted. (may be a fixed value or a ratchet).

Furthermore, if the limits are exceeded, fines will be charged.

Good management of demand (and its cost charged month to month) requires that the registered demand is very close to the contracted demand (to avoid idleness and/or fines).

This means that the ideal is to control demand (through automated systems) and always associate it with well-sized contracts. Every 100 kW of demand that is idle generates tens of thousands of extra $ per year. If they are generating fines, they can reach hundreds of thousands of $.