Weegy: In general Electricity supply companies charge consumers for the amount of power that they consume in addition to the amount of energy they consume.
By power it is meant the rate at which they consume the energy.
If for example you have two [ consumers who both use the same amount of electricity in a month but one uses it over two days and one over the whole month, the one that uses it over the two days will be penalised in their billing because the supply company will need to install more expensive, higher capacity equipment to supply them.
The financial benefit of peak lopping is reflected in the billing by the supply company. there is a charge per unit energy in cents/kWh and a demand charge which is based on the maximum demand that is recorded for the billing period, this is in $/kVA (power) the much more expensive one is the demand charge so it is better to draw energy for longer periods of time at cents/kWh than to draw it quickly and pay a premium rate for the demand in $/kVA.
Peak-lopping refers to a situation whereby the consumer choses to cut the peak demand that they require in order to avoid paying the penalties associated.
There are various means of implementing peak-lopping measures. in some buildings the Building Management System will simply switch off items such as Geysers and certain Air Conditioning units when the building starts drawing too much power.
Other means of peak-lopping generally involve storing the energy in some way during times of low demand for use later when it is needed during times of higher demand. An example of such a solution would be to use electricity during the night to make ice in an insulated ice storage tank and use the ice during the day to cool the Air conditioning units. This would reduce the amount of power they require during the day when there is a high demand for electricity.
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