Contract Right Sizing
Every business is required to pay the amount allocated for their GMBD or Guaranteed Minimum Billing Demand by Meralco. This is a fixed cost in the bill, determined by the facilities installed, whether they use power or not. The GMBD ensures an accurate contracted capacity and voltage for your business, providing you with cost-efficient and safe business operations.
- Submit a complete list of energy consuming machinery and equipment.
- From here, we compute for only 80% of the load as your contracted capacity. This ensures that your energy supply will be sufficient based on your load and that you are optimizing the monthly guaranteed minimum billing demand that you are paying for.
- Let’s say you have an applied electrical load of 100KW
- Your contracted capacity is 80% of 100KW = 80KW
- Thus, your GMBD = 70% of 80KW; which is 56KW
- So, if your GMBD = 56KW
- Your Demand Charge per KW = Php 282
- 56 KW x Php 282 = Php 15,792.00
- Add 10% VAT = Php 1,579.20
- Total Cost of GMBD per month = Php 17,371.20
(This is the base amount you will pay even if you shut down)
If I close my shop for one (1) month, and I didn’t use any electrical machines or lights, is there still a corresponding amount that I will have to pay?
Yes, you will have to pay the cost of your GMBD.
If one of my machines break down, does the cost of my GMBD also go down?
Even if you reduced your load, the cost will still be based on the monthly GMBD.
If I increase my load this month due to overtime or seasonal requirements, how will that affect my GMBD?
If your demand is higher than your GMBD, you will pay for the additional load used. The formula will remain the same, simply change the amount of the GMBD into the actual KW you consume and add the other components, such as generation charge, system loss, etc.
Let’s talk about how we can optimize your GMBD, so you can cut on costs and accelerate the growth of your business.