What is a demand tariff?
A demand tariff reflects how efficiently your site uses electrical energy and the quality of power your site uses. One way to think of demand tariffs is like taking a drive in your car. One charge is for the total distance you travelled (or your total electricity usage), and another charge is for the fastest speed you reached (or your peak demand).
How does it affect electricity costs?
It depends on your sites power factor rating. This rating measures the power that is actually used (kW) versus the power that is supplied (KVA) to your site. It is a measure of how efficiently your site uses Electrical Energy. If your site uses electricity efficiently and has a low power factor it may reduce your electricity costs. There are options including that may help reduce this charge. To find out more contact our customer service team.
Why networks introduced demand tariffs
The introduction of demand tariffs ensures accurate billing for the electrical capacity that is provided to your site. It also provides an incentive for businesses to improve their power factor and reduce network investment and charges.