ENMAX & EPCOR: When Demand Charges Do Not Apply

If you are a small business served by either municipal distributor, you may not have a demand charge at all. We would rather tell you that up front than sell you a solution to a problem you do not have.

In plain language

The short version

  • If you are a small business with ENMAX or EPCOR, you probably do not pay a demand charge at all.
  • That means there is nothing here for a battery to fix, and nobody should sell you one for this reason.
  • There is one exception. Big industrial sites with interval meters can still pay demand fees.
  • Check your bill. Look for a line measured in kW or kVA, separate from the kWh line.
  • No such line means peak shaving will save you nothing.
  • Switching power companies will never remove a demand charge. It is set by who owns the wires, not who sells you power.

Full detail below.

The short version

The Utilities Consumer Advocate states it plainly: ENMAX Power Corporation and EPCOR Distribution & Transmission do not have demand charges for small business customers. That is a meaningful difference from the two large investor-owned distributors serving most of the rest of the province.

Source: Utilities Consumer Advocate, Understanding demand charges. Billing determinants and rate minimums are set in each distributor's approved tariff and change over time. Confirm the figures on your current rate schedule before relying on them.

The exception that catches larger sites

The exemption is scoped to small business. Larger commercial and industrial accounts on interval metering can still face demand-based charges regardless of which distributor serves them. If your facility runs at industrial scale in the capital region or the Calgary area, the municipal exemption is not a reason to assume you have no exposure. Check the bill.

Account typeLikely demand exposureWhat to do
Small business, municipal distributorNoneFocus on the energy charge. Solar and efficiency are the levers, not storage for peak shaving.
Interval-metered commercial or industrialPossibleConfirm whether a kW or kVA line appears on the invoice, then pull interval data.
Any account in ATCO or Fortis territoryLikelySee the ATCO and FortisAlberta pages.

Why we publish this

Demand charges are a genuinely large cost for the businesses that carry them, and a nonexistent one for a substantial number of businesses being marketed to as though they carry them. Establishing which group you are in takes one look at an invoice and costs nothing. If there is no demand line on your bill, peak shaving has nothing to act on, and any proposal built around it is solving a problem your utility never gave you.

There may still be a strong case for solar or storage at your site on other grounds, including the energy charge, resilience or emissions. That is a different conversation with different numbers.

Frequently Asked Questions

Not for small business customers. According to the Utilities Consumer Advocate, ENMAX Power Corporation does not apply demand charges to small business accounts. Larger commercial and industrial accounts on interval metering can still be exposed to demand-based charges regardless of distributor.

The same answer applies. EPCOR Distribution and Transmission does not apply demand charges to small business customers, while larger interval-metered accounts may still face demand-based billing.

Possibly not, and that is worth establishing before anyone quotes you a system. If your account is small and served by the municipal distributor, there may be no demand charge on your bill to reduce. If you are an interval-metered industrial account, the small business exemption does not protect you and the exposure is real.

Look at your bill. A demand charge appears as a separate line billed in kilowatts or kilovolt-amperes, distinct from the per-kilowatt-hour energy charge. If no such line exists, peak shaving has nothing to act on at your site.

No. Demand charges come from your distribution company, which is fixed by your location. Changing retailers changes the energy rate you pay, not the demand line.