MAXIMUM DEMAND

WHAT IS MAXIMUM DEMAND?

MD is measured in Kilowatt (kW). It is the highest level of electrical demand monitored
in a particular period usually for a month period. Maximum Demand for any month shall
be deemed to be twice the largest number of kilowatt-hours (kWh) supplied during any
consecutive thirty minutes in that month.
WHY TNB CHARGE MAXIMUM DEMAND?
MD is the peak load imposed by the customer to TNB system at any point of time. TNB
need to cater for this peak load whenever required by the customer. Since electricity
cannot be stored there must be sufficient available generation, transmission and
distribution capacity to meet the highest demand. MD tariffs are structured to reflect the
time of day it is used. For these reasons most tariffs for larger users are designed to
encourage customers to control their electricity demand at daytime peaks. For example,
lower night rate electricity encourages the transfer of daytime usage to the night period.
The MD charge is being practiced by almost all utilities in the world.
HOW DO YOU CALCULATE MAXIMUM DEMAND?
MD is the highest level of electricity demand recorded by TNB meter during a 30-minute
interval in a month. The amount charged to customer is based on the recorded MD in kW
multiplied by the respective MD rate. For example, the amount payable by a Tariff C2
customer registering 100kW of MD for a particular month is RM4,510 (100kW x
RM45.10/kW).
CAN TNB EXCLUDE CUSTOMERS FROM PAYING MD CHARGES?
TNB imposed MD charge to its large customers, those at medium and high voltage level.
The MD charge component is necessary to take into account the peak load imposed to the
system by these customers. Waiving this MD charge will result in very high energy rate
and does not encourage customers to use electricity efficiently. However, those small
customers at low voltage level are only imposed energy charge as their peak load
requirement is low.
STEPS TO REDUCE MD CHARGES?
Few activities could be carried out by customers that assist in reducing MD charges such
as:
Practicing demand side management such as peak shift i.e. shifting their peak
operation/consumption to off peak period as MD charges is not applicable during
off-peak period for customer with peak/off-peak tariff
Opting for any promotional scheme offered by TNB relating to MD such as
Sunday Tariff Rider Scheme (STR).
Starts your motor/equipment in stages or during off-peak period
https://www.tnb.com.my/commercial-industrial/maximum-demand

How do you calculate MD charge?

MD is the highest level of electricity demand recorded by TNB meter during a 30-minute
interval in a month. The amount charged to customer is based on the recorded MD in kW
multiplied by the respective MD rate. For example, the amount payable by a Tariff C2
customer registering 100kW of MD for a particular month is RM3608 (80kW x
RM45.10/kW)

The highest demand recorded by TNB for the month.

http://matrefleksi.blogspot.my/2015/12/maximum-demand.html
http://www.tkes.com.my/