Demand Billing

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Demand Billing

What Is Demand Billing?

Demand billing is a standard practice used throughout North America to fairly recover costs from some business customers who use more than a specified amount of electricity during peak periods. Demand bills have two components: the total amount of electricity used (the energy charge), and the highest amount used within a 15-minute interval at any time during the customer’s billing period (the demand charge).

What is Load Factor?

Now that you understand Demand Billing, what can you do to save your business money? For commercial customers, understanding energy use patterns can lead to significant savings.

For More Information

Demand Meter primer (PDF)

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