Does not affect MD unless start duration > demand interval. For large motors, use staggered starting or soft starters.

For many industrial and commercial users, utility companies charge based on the highest recorded peak (Maximum Demand Charge). The Secret Ingredient: Diversity Factors

Standard methods (like AS/NZS 3000 Table C1) underestimate modern homes. A house with two ovens, an induction cooktop, a heated towel rail, a pool pump, and an EV charger often trips the main switch despite "compliant" calculations. The diversity tables haven't kept pace with 2020s electrification.

In practice, modern digital meters use methods. They sample current and voltage continuously, calculate instantaneous power, and then apply a thermal or averaging algorithm that mimics the heating effect of current in a conductor—since the true concern of maximum demand is thermal loading of transformers, cables, and switchgear. The most common algorithm is the block interval demand (sliding window), though thermal demand (exponential averaging) is also used for certain applications.

The general formula is: Key Components