Demand and Capacity Charges make up a significant portion of your electricity invoice, if you review you will see that it can often account for roughly 25% of your total bill. Networks have gradually transitioned their tariff structures to focus more on Demand and less on consumption, as this dictates the capacity of the network they need to provide for you. This is why things like Power Factor Correction are important.
Some networks apply Demand and Capacity Charges based on the highest measured interval of usage in the previous month, other calculate based on the highest measured interval of usage in the previous 12 months. So one super hot day where your demand spikes for just 30 minutes can impact your bill for the next 12 months.
If you are looking to improve energy efficiency and deliver energy savings, Demand Response and Demand Reduction are the buzzwords you should be looking for. NES is able to deliver permanent Demand Reductions with the Building Tuner targeting Air Conditioning and Refrigeration, with bottom line savings often exceeding 30%.
Some Retailers are now also providing opportunities to reduce costs by creating revenue streams from assets like backup generators or load that can be “curtailed” or turned off during peak demand events. If you can shift your energy usage if pre-warned or have backup or cogeneration this could be an opportunity to explore for reducing energy costs.
Talk to us now to find out how you can permanently reduce your Demand or consider Demand Response opportunities.
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