Which of the following utility bill charges is based on the highest measured interval of electricity consumption in a given month?
Peak time charge |
Demand charge |
Ancillary services charge |
Generation charge |
Demand charges are a special type of charge paid by the customers towards the utility companies. Demand charge is calculated based on the highest consumption of power for a given period of time in a month. This peak demand is measured typically for a 15 minute duration. The utility companies look for the peak demand by the customer during a month and charge a different and a higher $/kW rate for that duration. This is known as demand charges.
Hence option B is correct.
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