The way companies are billed for energy use is changing in the UK. This guide explains how businesses can reduce their commercial electricity demand charges as soon as possible, and why. Energy costs The two most significant energy costs for a business are the rate paid per unit used and demand charges. Demand charges are measured in kW and represent the amount of energy consumed at a single point in time. Energy consumption is measured in kWh and is the total amount of energy used over a given period. Also read: This Device Extends Your Phone’s Battery Lifespan Like Nothing Else. 5% Discount Code: GREENOPT What’s the difference between demand charge and usage? Imagine you drive from London to Glasgow. You drive for a few minutes at a maximum of 75mph; this top speed represents your demand charge (kW). So 75mph is your peak kW demand. The 412 miles you cover, at varying speeds, are your overall consumption (kWh). Your energy bill is measured by taking this number of kilowatt hours (kWh) and multiplying it by the predetermined unit rate your business pays for energy. It’s essential to understand your business energy bill before we look at how to […]


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