Contract Demand & Tariff Optimization

The electricity billing by utilities for medium and large enterprises, in High Tension (HT) category and sometimes Low tension (LT) as well is often done on two part tariff structure, i.e. one part for capacity or demand drawn and the second part for actual energy drawn during the billing cycle. Capacity or demand is in KVA or kW unit.

The capacity or demand portion can often be 20% of the total electricity bill and if you exceed the contract demand that you have contracted with the utility the penalty can be almost 1.5 times costlier than the normal demand charges.

Efficore Energy can help manage your demand in many different ways such that you can be rest assured that you will never overshoot the contract demand with the utility and in many cases you can also reduce your contract demand with the utility and save demand charges on your electricity bill. Some of the ways Efficore can help manage your demand are listed below.

contract-digram

The images showing the Demand profile BEFORE and AFTER the implementation of demand management depict the general idea behind the cost savings through demand management. Even the minimalist implementation of demand management can result in at least 20% cost savings on your electricity bills.

 

beforeafter
Want to get an estimate of the potential of cost savings on your electricity bills through demand management? Get in touch with us and send us your 12 months of electricity bills and one of our representatives will get back to you.