For sites with a maximum demand above around 100kW, the local distribution network charges for the capacity it reserves for your site as well as the energy you actually consume. This capacity charge is based on your agreed or assessed maximum demand in kilovolt amperes (kVA), and it appears on your bill whether or not you ever draw anywhere near that level of power.
Maximum demand settings are typically established when a site is first connected and are rarely reviewed proactively. A factory set up for a production line since decommissioned, or an office building built with provision for equipment never installed, may be carrying a capacity setting that reflects a historical peak, not the current reality.
If your actual maximum demand exceeds your agreed capacity, your supplier may apply excess demand charges, sometimes at significantly higher rates. If your site has grown or new equipment has been installed, it is worth verifying your current agreed capacity is not regularly being exceeded.
A capacity review costs nothing upfront. We look at your Half Hourly maximum demand data, compare it to your agreed capacity, and advise whether a reduction application to the DNO is justified. If the numbers support it, we manage the application process on your behalf.