A ratchet clause is a provision under which the demand charge for each month is based on the highest measured demand over the previous year. These clauses are used because electricity suppliers do not only charge commercial customers for usage but also for demand. The ratchet clause is such that the highest usage is used to calculate the bill for a customer. This is made possible by the inclusion of a demand counter that remains at the highest sustained demand for the customer for that period.
Detail what you understand by a ratchet clause.
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Academic.Tips. (2022, May 18). Detail what you understand by a ratchet clause. https://academic.tips/question/detail-what-you-understand-by-a-ratchet-clause/
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Academic.Tips. 2022. "Detail what you understand by a ratchet clause." May 18, 2022. https://academic.tips/question/detail-what-you-understand-by-a-ratchet-clause/.
1. Academic.Tips. "Detail what you understand by a ratchet clause." May 18, 2022. https://academic.tips/question/detail-what-you-understand-by-a-ratchet-clause/.
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