Note: This is a re-post of our very popular blog from November 2014
If you have a larger electricity supply*, you may have an element on your bill such as 'Capacity charge' or 'Availability charge'. There is often also a figure shown as 'Maximum demand'. What do these mean and why should you be interested?
Put simply, the Maximum Demand (kVA) is your peak demand of electricity from the grid. It's not the same as the amount of energy you use. For example; if you turned on all your electrical devices on at the same time, and then turned them off, you might not have used much energy in that time, but you will have had a peak of demand.
So what? Your energy distribution company charges you for the maximum demand, so it costs you money. The Maximum Demand is set at a rating of 100kVA or higher, and you will be charged based on the rate set, usually about £1 per kVA per month. So, if your Maximum demand is set at 150kVA, your bill includes a charge of £150. However, the important news is that you will be charged whether you use that maximum demand or not.
How can you ensure it is set correctly? You would need to analyse your peak demand over a period of several months and find out what a sensible level is. The good news is that your electricity supplier can supply that data for you, and BBA Energy can help you set the right level.
Some of our clients have saved £1000's. Contact us to see what we can do for you.
*A half-hourly meter has an MPAN or 'S' number that starts 00