What is Notified Maximum Demand?

 
The impact of a sudden spike in demand on the electricity network, and Eskom’s ability to effectively deal with the increase in demand, can put the electricity supply at risk and result in supply interruptions. This comes with the risk of power outages, which are not only inconvenient, but could have a negative impact on customers connected to that specific line of supply.
To minimise this risk, the Notified Maximum Demand (NMD) of your supply is set in place and is stipulated in your Eskom electricity supply agreement contract.

 Your NMD is the reserved capacity for your operations to provide for the maximum power demand requirements during all time periods.  Your NMD should not be exceeded unless agreed upon with Eskom. We use this to ensure that the network is capable of delivering a stable supply quality to all customers.

Unfortunately, you may exceed your NMD when your production equipment is not scheduled to operate at the scheduled times, or if productivity increases due to growth. It is important to note that, should your business have multiple points of supply connected to a point of delivery, your NMD will be the sum of the maximum demands for all of the points of supply connected to the point of delivery. Your energy advisor will be able to help you, at no additional cost, to reduce possible NMD charges. View pdf brochure (242 kB)>

Solutions to avoid NMD fees

When you exceed your NMD, an excess network access fee is charged depending on your tariff type. This is calculated by multiplying the amount exceeded (kVA) above your NMD by the number of months you have exceeded it over a rolling 12-month period. You can, however, avoid or minimise the excess network access charges by employing any of the following solutions:

Power factor correction:

In some cases, the exceeded NMD can be sorted out by installing power factor correction equipment. The power factor is the ratio of kW to kVA.  Power factor correction therefore reduces the kVA demand profile, bringing it closer to the kW demand profile.  This frees up capacity as well as demand costs savings on your bill, where you pay for demand.

 

Load management:

There are some occasions where the NMD is exceeded over a very short period. Excess network access charges can be avoided if your load profile is changed by load shifting or staggering the start-up of equipment. Notified Maximum Demand rules tool 2019-20.xlsmNotified Maximum Demand rules tool 2019-20.xlsm.

 

Application for increased NMD

You can also apply via Eskom’s customer contact centre for a supply increase (Notified Maximum Demand increase) based on your current usage profile.  This is, however, subject to the availability of capacity on the local power grid. We will generate a new quote based on your increased requirement. The quote is valid for 30 days in which you will have time to review and approve it. The process could take up to 6 months, has a cost associated with it, and you will be requested to increase your deposit and/or security should your current deposit be inadequate. 

Should you settle for an increase in Notified Maximum Demand, then a new supply agreement will have to be entered into which also means negotiating new terms and conditions to modify the connection and existing electricity supply agreement. Eskom will evaluate the modification before agreeing to increase the requested capacity (NMD increase).

 

Tailor-made services to assist you in optimising your energy use

Load profile optimisation

Are you looking to improve your productivity and expand your operations? Our complimentary service will assist you to free up existing electrical capacity without having to invest in new supply points or upgrades in supply.

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Power quality service

Are you experiencing damage or a disturbance in your electrical equipment? Your energy advisor can assess your power quality, free of charge, and recommend the best solution to create a disturbance free enviroment.
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