Demand and energy have different billing bases
Energy is consumption over time. A demand charge, where applicable, uses a tariff-defined power measurement or billing rule. It may involve an interval peak, a contracted amount, or other conditions. Read the actual agreement rather than assuming all demand charges work alike.
A miner can increase a site’s peak even if it runs for few hours. Lower monthly kWh does not necessarily reduce billed demand. This worksheet helps request an accurate utility assessment; it is not a substitute for a contract interpretation by the provider.
Step-by-step
- Confirm applicability. Ask whether your account includes demand charges and obtain the effective tariff, measurement interval, units, and any minimum or ratchet rules.
- Map simultaneous loads. Consider miners, cooling, and other equipment that may operate together during the relevant interval. Record supported startup behavior.
- Request a scenario review. Compare expected energy and demand charges with the utility or a qualified adviser before adding load. Review an actual invoice after commissioning.
Worked example
Illustrative example. Under an illustrative tariff of USD 10 per billed kW, a measured billed demand of 20 kW creates USD 200 in demand charges, separate from energy charges for the consumed kWh.
The example assumes that tariff and measured value only. Another contract may use a different basis, billing minimum, or retained peak.
Common mistakes
- Multiplying a demand rate by kWh.
- Assuming overnight operation avoids every demand charge.
- Ignoring cooling equipment in simultaneous peak planning.
Questions and answers
Will turning a miner off for half the month halve demand charges?
Not necessarily. A retained peak or contractual minimum can keep the billed amount unchanged. Only the applicable tariff and measured demand can answer that question.
Apply this to your setup
Write the tariff’s billed-demand definition, measurement interval, minimum or retained-peak rule, and effective rate. Add a simultaneous-load inventory for miners and auxiliaries. Use the utility’s actual billing basis for the scenario; reducing operating hours cannot be assumed to reduce a previously established demand quantity.
Sources and next steps
See tariff checks and site energy overhead.
How this guide was prepared: AI-generated drafting with the linked technical references and illustrative calculations. It does not report first-hand equipment tests or a named specialist review.