Modifying patterns of demand
Both the electricity and gas markets rely on national and regional
networks to deliver the energy to end users. The network operators
(National Grid the regional electricity companies, Transco, etc)
charge fees for transporting the
energy. Large electricity users may be familiar with items such
as 'available supply capacity', 'maximum demand', 'reactive units' and
other non-energy charges which appear on their bills. Many
of these charges relate not to the quantity of units
purchased but to factors such as the peak demand for power on a
half-hourly basis. By controlling your pattern of
demand for electricity, you can reduce these pass-through costs.
Paradoxically, transportation charges for gas are even more complex
but the complexity is disguised by gas suppliers who generally prefer
to charge on a flat price per kWh. There may be advantages to
negotiating an 'energy only' price for gas, paying for
transportation separately, and then doing something to control (for example)
your peak day kWh demand.
Elements of the utility management process
Top-level objectives