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