Product(s):	WaterGEMS, WaterCAD
Version(s):	CONNECT Edition, V8i
Area:	Modeling

Problem

What is a Block Rate, and how is it used in WaterGEMS Energy Management?

Problem ID#: 89685

Background

This article explains Block rate, how it is calculated using Energy management tool, and why it is not available with the Scenario Energy Cost tool.

Solution

Block Rate Energy Pricing will calculate energy cost based on a Block Rate Cost Structure. A Block Rate is a certain price charged for the first definite number of units used and a successively lower or higher price for each additional block used.

Increasing Block Rate - Energy supply rate structure in which per-unit price of energy increases as energy consumption increases.

Declining Block Rate - Energy supply rate structure in which per-unit price of energy decreases as the energy consumption increases. Declining block rate is typically offered only to very large energy consumers.

Block rate charges must be determined based on energy use over a complete billing cycle which may contain low, average and high water use periods which should be modeled as separate scenarios.

Block Rate cannot be used with the Scenario Energy Cost analysis because it must be determined based on Energy use for a complete billing cycle. The complete billing cycle info can be placed in the Energy Management tool, so the Block Rate Energy Prices can only be calculated using the Energy Management tool.

See Also

Using the Scenario Energy Cost and Energy Management tools in WaterGEMS and WaterCAD