Maximum Demand Tariffs
“How can we design a two-part tariff specifically catered to the maximum demand of a system?”
Two-part tariffs are great for controlling system-level energy use. But sometimes we would like to focus it on controlling the maximum demand for energy use. We can use something called a Maximum Demand Tariff which not only charges in proportion to energy used but levels an extra tariff based on the max power they drew for the given time period.