The line that gets skipped
Demand charges are where the money hides.
A demand charge bills you for your single highest half-hour of the month,
scaled up across every day in it. Run three ovens at once for one lunch
service and you pay for that spike all month.
It means two businesses using identical total kilowatt-hours can pay very
different amounts, and it means a plan with a lower usage rate can easily
be the more expensive one. Compare on usage alone and you get the answer
backwards.
That’s why Switchbuddy Business never ranks a demand plan yet. A
bill doesn’t show your peak half-hour, so a price we worked out
would leave the charge out and look cheaper than it is. Instead, every
demand plan at your site is listed separately, with that reason beside
it. Costing them properly is next.
Same site, same kWh, two plans
Illustration
- Plan A — 28.9¢/kWh, no demand charge
- Usage, 2,400 kWh
- $693.60
- Demand
- —
- Monthly
- $693.60
- Plan B — 21.4¢/kWh, $14.90/kW
- Usage, 2,400 kWh
- $513.60
- Demand, 18.2 kW peak
- $271.18
- Monthly
- $784.78
Plan B has the cheaper headline rate and costs $91 more a month. A
comparison that ignores the demand line recommends it.