The peak power
Concerning the high-voltage pricing, the electricity provider wants to make profit from his hardware investment in order to provide his clients with the required energy. An “A” customer who uses 1,000 kW during 1 hour, creates more constraints than the “B” customer who consumes 1 kilowatt during 1,000 hours. They both consume the same quantity, but the provider charges “A” customer more according to his higher peak demand.. The electricity meter records the energy consumption every 1/4 hours. Dividing the consumed energy by the elapsed time (15 minutes), the meter determines the average power during this time. Then the maximum value of the average power serves as reference for the bill. The higher the peak, the more expensive the bill is.