Demand Charge

A fee based on your highest peak power draw in a billing period, separate from total energy used.

A demand charge bills you for the single highest rate of power you pulled during the month, measured in kilowatts, rather than for total kilowatt-hours consumed. It is common on commercial accounts and rare on standard residential plans, but worth knowing if you run a larger setup or are on a non-standard tariff. Because a demand charge keys off your peak, simultaneously starting several high-draw devices and a mining rig can spike the recorded demand and raise the fee. Staggering big loads keeps the peak lower. Most home miners on ordinary residential rates never encounter demand charges, but they appear on some tariffs.