Electricity Demand Charge Calculator

How the electricity demand charge calculator works

For each scenario, billed demand is the greater of the entered period peak and the supplied billed-demand floor. The floor can represent a separately reviewed historical ratchet or minimum. The tool does not derive a lookback period, percentage ratchet or actual maximum from interval consumption data.

Each monthly charge is billed kW × entered rate, rounded half-up to cents. It is then repeated for the entered whole number of identical billing months. The difference compares those rounded totals. Zero months produces zero charges even when a peak or floor is entered.

Real demand tariffs can have seasonal periods, time-of-use demand, power-factor corrections, coincident peaks and minimum bills. This comparison includes none automatically and does not establish eligibility or a guaranteed demand reduction. Energy, tax and fixed charges belong outside this demand-only scenario.

Worked example

Baseline peak 50 kW and proposed peak 30 kW with a 40 kW billed floor give billed quantities of 50 and 40. At 10 per kW for twelve identical months, charges are 6,000 and 4,800, saving 1,200. Removing the floor lowers proposed billed demand to 30 kW and increases saving to 2,400.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• SAM: energy, demand and time-matched export billing