we are small scale industry in production of rice & rice
bran. Pls let me know how to take contract demand for our
industry.. (for information we have total 600.hp)
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Answer Posted / k.prakashchandra
Contract demand is based on demand factor which to be
assessed or obtained from a similar industry.Once you enter
into agreement with the supplier ,you will have to pay the
demand charges during the entire period of agreement.If you
take the demand factor as 0.8 ,your CD will be 425 KVA at
0.85 pf..You can start with a lower value and ask for
sanction of additional CD if the MD exceeds the CD.Normally
you are unlikely to be penalized for exceeding CD during one
month ,depending on prevailing supply rules .
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