Demand Control is a method of controlling energy costs by limiting
the amount of power drawn from the electricity grid. All users are charged for energy consumption, the actual kWh used in a given billing period. For commercial and industrial energy consumers, another parameter is added to the total charged: the customer’s highest level of energy usage, or peak demand. This additional parameter acts as a capacity charge, paying for the infrastructure required by the utility to deliver the peak demand level. These additional charges typically account for about 25% of a customer’s bill. Demand control allows energy consumers to minimize these demand peaks and regulate power usage across their entire enterprise, reducing extra demand charges and lowering long-term energy costs.
Illustration of peak shaving, demonstrating how re-allocating tasks from peak usage time to lower-usage time can decrease overall capacity charges.