Why are large commercial energy charges price per kilowatt hour (kWh) less than residential energy charges?

Due to metering limitations, residential customers do not have a meter that can separate out, or read, demand. Therefore, residential customers demand charges are captured through the energy charge resulting in a higher price per kilowatt hour (kWh) rate. In comparison, most commercial customers have a meter that can read demand, which means they are assessed a basic charge, energy charge and a demand charge. Since we are able to separate the energy charge and demand charge, this gives the appearance of the energy rate being lower.