A Capacity Charge (or Demand Charge) is a price based on reserved capacity or measured demand and irrespective of energy delivered that is the highest amount of energy estimated to be used or consumed, or assessed on the capacity of the amount of gas or electricity being purchased during a specific time period. In gas industry, the Capacity Charge is the payment made for reserving capacity in a pipeline, a gas store or other piece of infrastructure that is assessed on the gas capacity being purchased.
Related Definitions in the Project: The Commercial Definitions
