Breaking Down the Components
Global Adjustment Charge
Your energy statement includes a sizable portion for the Global Adjustment charge, which is calculated using your Coincidental Peak Factors for the year. This means that it is not only related to your total energy consumption but also directly to the times when you use the most of it. Managing this expense efficiently depends first on knowing your consumption trends during peak hours.
Commodity Charge
On the other hand, the commodity charge is simple and simply charges for energy. This section of your statement exactly matches the energy consumption you incur. Although it could appear easier, maximizing your energy efficiency still has a big influence on cost reduction.
Distribution and Transmission Network Charges
Your monthly Peak Demand determines the prices for the Distribution and Transmission Network. Basically, it’s more about how much energy you’re using at a maximum level every month than about your normal use. Understanding when these peaks arise and knowing how to minimize them will help to save a lot of money.
Taking Control of Your Energy Expenses
The first step towards controlling your spending is knowing the several elements of your energy bill. Still, the challenge is how to modify your business processes to negotiate these complexities and save additional money.
Peak Demand Management
Since various fees are related to your peak demand, carefully controlling and maximizing your energy use during peak hours can help you save a lot of money. This may involve modifying operations plans or using energy-efficient technologies, including dataTrackTM, which lets you see these peaks by visualizing energy data.
Strategic Energy Consumption
Identifying when energy use is lowest and scheduling high-energy tasks during those times can assist in reducing overall expenditures. Having data insights into when these peaks occur and which machinery causes the largest energy spikes is critical. dataTrack™, an energy management platform that uses AI and IoT, can provide these insights.
Utilizing Renewable Energy Sources
Incorporating renewable energy sources into your energy mix might help you achieve your sustainability goals while also potentially saving money. Government subsidies and rebates for renewable energy adoption might increase the financial benefits. In Ontario, Demand Response is a program that pays you to support the grid by curtailing your energy consumption.
Understanding the subtleties of each line item on Ontario’s big consumer energy bills is important. Effectively managing Coincident Peak Factors, Peak Demand, and total energy usage can result in significant cost reductions. If you’re having trouble understanding the nuances of your energy account, consider reaching out to professionals like Edgecom Energy. They can offer personalized guidance and solutions to help you manage the complexities and make informed decisions for a more cost-effective, sustainable energy future.
