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Peak demand charges, explained in five minutes

One busy half hour can set your bill for the whole month. Here is how to stop it.

TR

Tomas Ribeiro

Head of Sustainability, Linden & Vale

Sep 16, 2026

5 min read

Curved glass office building against a blue sky

In short

Demand charges are set by your single busiest half hour

Pre-cooling and staggered starts flatten the peak

Peak savings often beat the energy savings

Many commercial tariffs charge for two things: how much energy you use, and the highest amount you draw at any one time.

Why one spike matters

If every chiller and air handler starts at 8 a.m. on a hot Monday, that single peak can set the demand charge for the entire month.

One busy Monday morning can set the bill for the whole month.

Ohmwood pre-cools before expected peaks, staggers large loads by a few minutes, and keeps the building under the contracted limit you set.

The result

Customers on demand-based tariffs typically cut peak demand by 15 to 20 percent, which often saves more than the energy reduction itself.

By the numbers

−18%

Typical cut in peak demand

Written by

TR

Tomas Ribeiro

Head of Sustainability, Linden & Vale

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Buildings online

2,418

sites

Saved today

61,240

kWh

Avoided this year

14.8

kt CO₂e

Average comfort

97

/ 100

The energy autopilot for commercial buildings. Quietly re-tuned every five minutes, from Rotterdam.

All systems green

ohmwood

© 2026 Ohmwood B.V. All rights reserved.

Made for buildings that never sleep

Buildings online

2,418

sites

Saved today

61,240

kWh

Avoided this year

14.8

kt CO₂e

Average comfort

97

/ 100

The energy autopilot for commercial buildings. Quietly re-tuned every five minutes, from Rotterdam.

All systems green

ohmwood

© 2026 Ohmwood B.V. All rights reserved.

Made for buildings that never sleep

Buildings online

2,418

sites

Saved today

61,240

kWh

Avoided this year

14.8

kt CO₂e

Average comfort

97

/ 100

The energy autopilot for commercial buildings. Quietly re-tuned every five minutes, from Rotterdam.

All systems green

ohmwood

© 2026 Ohmwood B.V. All rights reserved.

Made for buildings that never sleep

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