Energy Charge vs. Demand: Understanding Your Electric Bill

Energy Bill

Energy Charge vs. Demand

If you are like me, when you have received an electric bill, you look at it and wonder how did they get this number? Once you start to review the statement, you often are met with symbols and words that don’t quite explain what things are. Two words I often see causing a lot of the confusion are Energy Charge vs. Energy Demand.

So what is the difference?

It turns out the difference is just a matter of time. We are well aware at this stage in life that time is a measure and can make the amount of something measured by it seem either really small or really large.


Ok, you might say, so what about Energy demand?

Demand is the measure of the largest amount you use at one point in time. Over our monthly billing cycle, we have a party; all the lights are on, the radio is playing, television is on, the stove is running, then that is it. That is the moment we use the most energy. Sometimes it may not be as obvious, but I think you get the gist.

Time is Energy

This plays an integral part in determining what an electrical utility may charge for a bill. It is also important to note that the charges may be even more expensive if it is a peak time. Recall, that peak times are when the whole world uses energy, maybe in the evening after work. The utility charges a premium for the amount of energy consumed at this time. Check with your utility to avoid large demand during this time.

All in all, I hope this has provided you with a bit more insight into your bill. However, I would not suggest doing laundry at 5 in the morning!

Have any concerns with your power management?

APT’s specialty is providing reports and analytics out of a customer’s power and energy monitoring system based on the utility tariff and rate that should match the client’s electric utility bill.  This provides discerning clients the control and security of reviewing and approving utility bills for payment with assurance that the bill is correct.  Even better, when the utility bill from the supplier does NOT match the calculated bill, the client has data and an APT resource on their side when they confront their utility supplier to dispute a bill.

If you’ve ever wondered how you are going to dispute a bill from your electric utility, contact APT to leverage our experience and expertise on your side.

Let us know how we can help!

Donald Flowers II Field Service Engineer