Demand charge

A demand charge is a component of an electricity bill based on a site's peak power draw rather than on the energy it used. In Great Britain it is usually charged as an availability rate on the site's agreed supply capacity in kVA, plus excess capacity charges where measured demand breaches it, rather than as a single monthly demand line. Lowering the peak is what makes it possible to contract for less capacity and to avoid excess charges, which is why load shifting can cut a bill without cutting a mile driven.