Electricity
Load Factor
A ratio showing how steadily you use electricity relative to your peak demand.
Definition
Load factor is the ratio of your average demand to your peak demand over a period, expressed as a percentage.
Detailed explanation
A high load factor means steady, predictable usage; a low load factor means spiky usage with high peaks relative to average consumption. Suppliers price steady, high-load-factor accounts more favorably because they are cheaper and less risky to serve.
Why it matters
Improving load factor — by flattening peaks or shifting load — can improve the pricing you're offered and reduce demand-related charges.
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