Question { 49012 }

What is maximum demand and contract demand?

Answer

Contract demand is the demand(load in terms of KVA/MVA)
based on the customer requirement with power supplier as
per the supply agreement. Maximum demand is the maximum
load recorded during the billing cycle (usually a month)as
per the power supplier. Billing demand is the demand
charges billed by the supplier based on maximum demand
recorded and contract demand. It varies depending on the
power supplier. For example in Karnataka state all
Electricity Supply Company under Karnataka Power
Transmission Corporation, bills based on 75% of the
contract demand or maximum demand recorded whichever is
higher in a month.