Understanding Energy Rate Consumption and Demand

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Energy rates are increasing from past years at high speed, and more increases will be there in the coming future. If you get a chance to study your electricity bill you will notice that the majority of your total cost contains prices for consumption and prices for demand.

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In many cases, demand price is greater than consumption price, and in other cases demand price consists of half of the bill. So, it is a great idea to know how to calculate consumption and demand-Reliant Energy prices. Best way to save your money. The article will be able to tell you about the two most important changes found in electricity bills – consumption and demand.


The energy rate of consumption can be easily known and calculate, measured in kWh. It is the measurement of the amount of energy that is used during the billing period. Varying prices are there of kWh, according to your location and on the basis of your rate plan, you may have to pay much or less.

Reduction of kWh can be done which you consume or you can control the over usage of appliances. The reduction can be done by making sure that no light, fans, chargers, and many other appliances are turned on when not in use.


Demand acts as the most complex project, demand shows the energy amount that has to be generated at any given time. In simple language, the rate should be able to deliver sufficient power at any time, be it night or day, which is required by customers. Due to the increment in demand, many power sources need to be found – but this act can be expensive. Demand, to the consumer, depicts at which speed you use energy and at what rate.

Speed of energy rate is measured in kW, demand varies from time to time. The demand charge is measured as an average which you draw within 15 minutes. If the period of demand becomes long enough it will show great impact.

Finally, two types of demand can be seen in your energy rate bill. One is actual demand and the other is billing demand.

  • Annual demand – this depicts high actual average demand which is measured during the billing period. The time period is 15 minutes.
  • Billing demand – this is measured at your site and from previous months, from 15-minute demand.


Energy management systems can be very helpful in reducing energy consumption, but if you don’t know about the usage of power and its efficiency then your system will also not be able to manage your costs. To know the usage of energy is the very essential step to limit power demand. Helps in lowering consumption to lower your day-to-day expenses on electricity.

These are the ways which are mentioned in electricity bills and tell us about the energy rate. Very efficient methods and easy. But, you should have proper knowledge of these two charges. Not much physics or brain is required to understand this, just keep your focus on the main thing.

Hopefully, you got the idea about energy rates consumption, and demands, and how good reliant energy should be.