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Maximum Demand Charge

by John Herbert

What is Maximum Demand and why is it important? 

The Maximum Demand Tariff is one part of your electricity utility bill. The utility company records your peak electrical consumption over a set period of time, typically a 30 minute period to determine your Maximum Demand for that billing period. 

In addition to the unit or KWH charge, the electrical utilities often apply an extra charge based on your Maximum Demand, and often apply severe cost penalties if your tariff threshold is exceed, therefore it pays to monitor your Maximum Demand.

A brutal but effective strategy to avoid maximum demand penalties is known as load shedding. As the name implies as your electrical load increases and approaches the level where you might incur penalty charges non-essential loads are automatically switched off to lower consumption and keep your demand below the threshold.

Careful analysis of your operation, and utility bills offer opportunities to lower your operating expenses.

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Electrical Systems Energy Audit

To help owners reduce their power consumption and lower utility bills whilst reducing environmental pollution Kelcroft's energy audit identifies vendor neutral EMO (Energy Management Opportunities) to improve your system efficiency.  

Further Information

If you need further information regarding Kelcroft and the services we provide to help businesses, call Mr John Herbert at our Hong Kong office telephone +(852) 2335 9830 or by fax +(852) 2335 9862.


keywords: maximum demand tariff, load shedding