A few peak minutes can cost more than you think
- Truewatts
- Apr 5
- 3 min read
Updated: May 9
When starting to talk about energy saving, the first question should not be how to reduce it.
Instead, it should be:
👉 Do you really understand how your electricity bill is calculated?
This may seem basic to some, but in real operations, those responsible for electricity costs
do not always have a direct background in energy.
And without a clear understanding of the billing structure, energy-saving initiatives may end up solving the wrong problem.
📌 As mentioned in previous articles, this content is intended to reach people at all levels, especially those responsible for electricity costs in organizations, even if they are not energy specialists.
This article therefore starts from the fundamentals,
before moving on to more complex topics such as OEE, IoT, or automation.
💡 This article is intended not only to provide information, but also to offer another perspective that may help spark ideas for reducing energy costs.
In a way that is easy to understand, practical to apply, and does not necessarily require starting with complex solutions.
📊 Electricity Cost Structure (Overview)
In general, electricity costs consist of:
🔹 Base Tariff
Demand charge (THB/kW)
Energy charge (THB/unit or kWh)
Service charge (THB/month)
🔹 Ft (Fuel Adjustment Charge) Reflects changes in energy costs beyond control
🔹 VAT
🔹 Reactive Power Penalty Applied when usage exceeds specified limits
🎯 Key Point: Demand Charge
In this article, we share real experience from helping customers reduce electricity costs by focusing on Demand.
Which refers to:
👉 The highest average power demand over a 15-minute interval in a month
Simply put:
❗ Managing energy usage during a short period of time can save more money than you think
🏭 Case Study
Our customer is a large industrial factory that wanted to reduce electricity costs but did not know where to start.
After analyzing the load profile, we found that:
⚠️ Demand peaked at 288 kW during midday, caused by unnecessary simultaneous operation of multiple loads.
By working closely with the customer’s team and analyzing equipment usage behavior, a control strategy was developed:
👉 Target demand reduced to 180 kW
💸 Results
The customer is under Tariff Type 3 – TOUat 22–33 kV voltage level, with a demand charge rate of 132.93 THB/kW
After implementation:
Demand reduced by 108 kW
Cost savings achieved:
💸 14,355 THB per month
💸 172,260 THB per year
⚙️ Approach
The solution was not complex.
It involved a real-time alert system:
🚨 When demand approaches a predefined threshold, the system alerts operators.
👉 Allowing them to manage the load in time
Previously, the customer did not closely monitor demand. But after implementing monitoring:
👉 Operators could clearly see the data
👉 And actively cooperate in controlling usage
📌 Most importantly, this project:
Did not require automation
Did not require large investment
Instead, it relied on:
👉 Data + Management
And achieved a payback period of:
👉 Less than 1 year
🧠 Conclusion
Many factories already have energy monitoring systems, but are not fully utilizing the data.
Reducing electricity costs does not always require large investments.
Sometimes,
👉 understanding how your bill works
👉 and using the data you already have
can deliver clear results.
If additional investment is needed, it should be appropriate and aligned with actual operational needs.
📌 Get in Touch
📧 Email Info@truewatts.co.th
📞 Phone +66-4409-6362
▶️YouTube:TrueWatts Team - YouTube
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