Peak demand is a bottleneck on the electricity grid, and typically occurs in June, July and August during the hours of 2-7pm when many businesses and homes are using energy at the same time.
Ideally, you want your energy usage to look like the yellow line in the graph above, yet most businesses are using a lot of energy during peak hours like the red line.
Think of it like a a highway. At most hours of the day you can travel at a nice pace and there's plenty of open road to switch lanes.
BUT... when rush hour hits, you're in bumper to bumper traffic and that drive that would normally take you 15 minutes is now taking a lot longer.
Peak demand is similar to rush hour, when all the businesses and homes are using a high amount of energy at the same time causing strain on your utility's capacity to supply energy.
Okay, but why is it important?
Well, your utility charges your PLC (Peak Load Contribution) tags on your electricity bill based on the average of five highest peak demand days during the year.
So, when you know a peak demand day may be occurring, you can offset your peak demand by taking charge of your energy. When your utility updates your PLC tags next, it will show that you were using less capacity during peak hours, and you'll be charged less on your bill.
Plus, managing your energy more efficiently can significantly reduce your energy bill. Sign up for our email warnings for Peak Demand Days - so you'll never miss an opportunity to start saving money.