Maximum demand is the maximum power value which is hit during the billing period, usually measured over a time period of about 15 minutes (this time period may be different in different countries).
If this value comes out higher than the contracted power, the user must pay a penalty on the electicity bill.
It only applies to your business if you are in business electricity profile classes 05-08. To find out which business electricity profile class you are in, you can look at the ‘Meter Point Administration Number’, or MPAN, on your electricity bill. This is a number 21 digits long, which usually starts with an ‘S’, and is normally displayed in a box saying ‘Supply Number’. The first two numbers in the box straight after the ‘S’ shows what your business electricity profile class is.
What is a maximum demand meter?
All maximum demand business energy customers were moved to half hourly meters in 2017. These meters work the same as a regular meter, and record your business electricity consumption. However, these half hourly meters automatically send meter readings to suppliers every 30 minutes. The maximum demand isn’t calculated within the energy meter itself, but from the meter readings it sends.
How to reduce maximum demand
You will be able to see the breakdown of costs on your bill. There will be capacity charges which must be paid monthly, irrelevant of how much electricity is actually used. There will also be the charge for the amount of power actually used. If you keep overpaying on the capacity charges, this will start to add up and cost your business.
If you notice this keeps showing up on your bill, switching your business electricity supplier is one of the quickest things you can do to combat the extra charges.
Energy Helpline Business is a comparison site to help you switch to the cheapest supplier, which could save you hundreds of pounds, especially if you frequently hit maximum demand.
To find the best deals for your business call 0800 068 5222. Our office hours are Mon-Fri 9am-5.30pm.