What are load factor blocks and how do they work?
A “load factor block” refers to the part of the price structure where the per kilowatt-hour (kWh) price is dependent on the amount of energy (kWh) used relative to a customer’s demand kilowatts (kW). A load factor block encourages customers to keep their energy usage as stable as possible – avoiding demands that are extremely high relative to total energy usage. This promotes efficiency of consumption, which decreases average system costs. Higher load factor customers enjoy an overall lower price per kWh compared to a lower load factor customer.
