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Electric bill term

Demand Charge Explained

A charge based on peak power demand during a period, more common on commercial or some special residential plans. Learn where it appears on an electric bill, whether it is controllable, and what to check first.

Electric bill

$226

Energy$142
Delivery$48.00
Fees$36.00

All-in rate

$0.246 per kWh

Best next check

Cooling hours

Plain-English definition

A charge based on peak power demand during a period, more common on commercial or some special residential plans.

On a real bill, this may appear as Demand, Peak demand, kW demand charge. The exact label depends on the utility, supplier, regulator, and rate plan.

What to check: Look for heavy appliances running at the same time, such as EV charging, HVAC, dryers, pumps, or water heating.

Related electric bill terms

FAQ

Short answers for search visitors and bill-checking moments.

What does demand charge mean on an electric bill?

A charge based on peak power demand during a period, more common on commercial or some special residential plans.

Can I control demand charge?

Demand charge is partly controllable. Look for heavy appliances running at the same time, such as EV charging, HVAC, dryers, pumps, or water heating.

What should I compare first?

Compare kWh usage, billing days, and the all-in cost per kWh before deciding which line item caused the increase.