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Quick tariff question.

  • 08-05-2013 8:04pm
    #1
    Pac1Man
    Registered Users, Registered Users 2 Posts: 4,394 ✭✭✭


    I have a simple tariff question which is an example of what may appear in an upcoming exam. It asks for the 'Daily Demand Charge' which is based over a 59 day billing period. The max demand is 65 kW and the demand price is €0.094. The answer for this example is also provided but it is causing me confusion.

    The answer states that:

    Daily Demand Charge = €0.094 x 65 x 59 = €360.94

    What I don't understand is why the answer is including the 59 days. Surely if the question asks for the Daily Demand Charge, the 59 days should be forgotten about and the answer would be: €0.094 x 65?

    Am I missunderstanding the definition of Daily Demand Charge?


Comments

  • #2
    arse..biscuits
    Registered Users, Registered Users 2 Posts: 1,878 ✭✭✭arse..biscuits


    Demand charge is the largest consumption during the billing period. So even if you only hit your peak demand on one day, you are charged at that rate for the full billing period.
    So €0.094 x 65 kW x 59 days is correct


  • #3
    Pac1Man
    Registered Users, Registered Users 2 Posts: 4,394 ✭✭✭Pac1Man


    arse..biscuits wrote: »
    Demand charge is the largest consumption during the billing period. So even if you only hit your peak demand on one day, you are charged at that rate for the full billing period.
    So €0.094 x 65 kW x 59 days is correct

    Ah ok. I thought it was per day. Thanks.


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