Most FMCG plants pay for electricity twice: once for every kilowatt-hour consumed, and again for the single highest fifteen-minute spike of the month. That second charge, the demand charge, can equal or exceed the energy charge on some utility bills, yet it is set by a few minutes of overlap between machines that rarely need to run together. This guide covers how plants read their demand charge, sequence loads to avoid stacking, and where battery storage fits in. Teams ready to see their own peak profile can book a demo with the iFactory AI team.
Peak Demand Management for FMCG Manufacturing
Utility peak charge economics, load-shedding sequencing and battery-storage tactics that trim 15 to 25 percent off demand charges.
A single peak, illustrative above, sets the demand charge for the whole month, sometimes longer.
How a Demand Charge Actually Works
Unlike an energy charge, a demand charge is not about how much you used over the month. It is about the single highest rate you drew power at, for one short window.
Total kWh over the month
Scales directly with production volume and running hours, easy to predict from output.
One peak kW moment
Set by whichever fifteen-minute window had the highest simultaneous draw, often from equipment starting together.
Where Peaks Usually Come From
A handful of recurring patterns explain most demand spikes on an FMCG floor.
| Pattern | What Happens | Sequencing Fix |
|---|---|---|
| Shift-start stacking | Multiple large motors start within the same minute | Stagger start times by a few minutes |
| Compressor and chiller overlap | Both cycle on together by coincidence | Offset cycling schedules |
| Post-outage restart | Everything restarts at once after a power dip | Programme a staged restart sequence |
| Changeover equipment surge | Line reset draws a short, sharp spike | Spread changeovers across lines where possible |
Three Tactics, in Order of Cost
Plants typically work through these in sequence, since each one builds on data the previous step already collected.
Stop Letting One Spike Set Your Bill
Book a 30-minute walkthrough and see your plant's peak demand pattern and sequencing opportunities from live data.
Savings From Sequencing, Illustrative
The figures below are invented to show the pattern, not a benchmark for your plant.
Common Peak Demand Mistakes
The same errors recur across plants managing demand charges for the first time.
Reading Your Own Demand Profile
Before sequencing anything, a plant needs to see its own interval data clearly enough to spot the pattern behind the peak.
Most utilities already provide fifteen-minute interval data on request, and plotting a single bad day next to a typical day usually makes the spike's cause obvious without any special analysis.
A smooth ramp
Load builds gradually as shifts start and equipment comes online in a staggered pattern.
A sharp spike
Several large loads start within the same window, usually traceable to a specific restart or shift-change moment.
Frequently Asked Questions
How much of a typical bill is demand charges?
On many industrial tariffs, demand charges make up twenty to forty percent of the total electricity bill, which is often larger than plant managers expect until they see the breakdown. Book a demo to see your own bill broken down.
What is a ratchet clause?
Some utilities bill a percentage of your highest peak from the past several months even if the current month was lower, so one bad spike can echo on bills for up to a year. Checking your tariff for this clause changes how urgently a single peak should be addressed.
Is battery storage worth it for a mid-sized plant?
It depends on how much of the peak remains after sequencing and on local battery and demand-charge economics, which vary significantly by region and tariff. Most plants only reach this question after sequencing has been tried.
Can this data also help with carbon reporting?
Yes, the same interval demand data that drives peak management also supports time-of-use carbon accounting where electricity factors vary by hour. Ask support how the two reports connect.
Who Should Own Peak Demand on the Floor
Peak demand sits in an odd spot organisationally. It is caused by production scheduling but billed as a facilities cost, so ownership often falls through the cracks.
The plants that manage it well usually assign a single owner who can see both sides: production scheduling and the utility bill, with enough authority to request a shift-start change if the data supports it.
| Role | What They Contribute |
|---|---|
| Energy or facilities manager | Owns the demand profile and the utility relationship |
| Production scheduler | Controls start times and changeover sequencing |
| Maintenance | Flags equipment whose restart behavior spikes demand |
Turn One Spike Into a Managed Peak
iFactory AI reads your demand profile and flags sequencing opportunities before the next bill lands. Book a walkthrough built around your plant.
