Energy
Dictionary

 


inverted block rate

A fee structure for energy in which each additional block or unit of energy above a given level is charged at a higher rate than preceding blocks. Inverted block rates are most commonly applied to energy delivered to clients who require large portions of their energy during peak demand periods when energy costs are typically higher, or when additional system capacity has to be brought online to meet that client's needs.

See also:

block rate, declining block rate, peak demand, load, load management rate