minhdock
Member
I learning. What is ratchet? Like tool?
Interpreting this utility demand charge
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minhdock said:
What is ratchet? Like tool?
Not tool lah. Is like this: you use 100kW normally, then one day you use 200kW for 15 min. Next month they charge you 200kW for whole month, or 80% of 200kW, even if you go back to 100kW. The high number stick like chewing gum.
Chen said:
80% of 200kW
Or 90%. Or 85%. Depends on contract. The percentage is the ratchet. The mechanism is the clause. The pain is universal.
In Bangalore we have same with Bescom but they call it "contract demand" penalty. If you exceed 110% of sanctioned load, they back-charge entire year at higher slab. I thought this was only developing market problem. Surprised to see in Europe.
Server14 said:
Back-charge entire year
India is special. In Europe the ratchet is usually forward-looking, not retrospective. Bescom does both because Bescom.