commercial demand charges
Shopping for business electricity in Texas can be a challenge. But you can avoid common mistakes businesses make in energy procurement by knowing what to look for.
Most mistakes are simple oversights. Don’t treat electricity procurement like it’s just another purchasing decision. These can be complex contracts and it’s important to avoid these erros.
Read More about Top 5 Texas Business Electricity Mistakes
Your commercial electricity bill typically has three sections – delivery charges, supply charges and demand charges. Understanding each of these can help you cut your business’ electricity bill.
Read More about How to Read Your Commercial Electricity Bill
You shopped for the lowest rate per kWh for your business. So what’s this other charge on your bill?
Business customers often pay a commercial electricity demand charge in addition to the cost per kWh. A demand charge is a fee based on the highest amount of power a customer draws during any 15 minute interval. Demand charges are established annually, and can add 30% or more to your electricity bill.
Read on to find out what is a demand charge, how demand charges are set, typical load factor by type of business, how your load factor impacts your demand, and most importantly, how to reduce your demand charges.
Read More about Load Factor and Commercial Demand Charges – How to Lower Your Business Electricity Bill