What demand charges actually bill for
Energy charges follow kilowatt-hours. Demand charges follow how hard your site pulls power at peak — often the highest 15- or 30-minute interval in the billing window.
kWh vs kW
Think of kWh as miles driven and kW as how hard you pressed the accelerator. A short spike can set demand for the whole month even if the rest of the period is quiet.
Ratchets and contract demand
Some tariffs keep a percentage of a prior peak (a ratchet) or bill against a contracted demand floor. If operations changed — equipment removed, hours shortened — an outdated floor can overbill for months.
What to pull from your bills
- Billed demand (kW) for each month
- Any contract / ratchet demand listed
- Rate schedule or tariff code
- Notes about equipment or schedule changes
What we do with that
We line those figures up against the tariff language that should apply. If demand looks inflated or misapplied, we flag it for recovery — free to check, paid only if money comes back.