
Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
Post
Contracted demand: How to be more competitive?
Contracted demand: How to be more competitive?
Industrial, commercial and institutional energy consumers pay binomial tariffs. Demand and consumption.
Consumption refers to the energy absorbed in the month. Demand is the highest between the contracted and the maximum power measured on that month.
As the contracted demand can only change once a year, the prevailing trend is to give a good slack in this amount to avoid fines for surpassing the contracted demand.
I created a concept to give more flexibility to the contracted demand, but with gains for the concessionaire and its customers.
I called it DEX. It is a platform for exchanging positions of contracted demands among customers of the same concessionaire. Simple, easy, fast. Whoever has "leftovers" posts and so who wants to increase their demand "captures" the opportunity.
It is a "zero-sum game".
The concessionaire postpone CAPEX investments in its grid, while maintaining the revenue from contracted demands unchanged. Customers reduce their costs.
If you would like to learn more about this concept, make sure to get in touch!
Discussions
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.
Sign in to Participate