What Is Sanc Load In Electricity Bill?

13. Copy and save. Sanctioned Load refers to the consumer’s load, expressed in kW/kVA, that the licensee has agreed to supply from time to time under the terms of the agreement; Sample 1.

What does it mean to have a sanctioned load?

The load in KW/ KVA that the Licensee has agreed to furnish from time to time subject to the governing terms and conditions is referred to as sanctioned load.

What does it mean to have a contractual load?

The maximum demand in kW, kVA, or BHP agreed to be supplied by the licensee and mentioned in the agreement made between the licensee and the consumer is referred to as contracted load or “contract demand.”

What is the maximum contracted demand?

Maximum demand is the maximum kW and or kVA requirement over a billing cycle, whereas contract demand is the quantity of electric power that a customer requires from a utility at a predetermined interval (units used are kVA or kW).

What is the difference between contract demand and connected load?

When only one item can be on at a time, such as heating and cooling, demand load allows for demand-factor reductions and excludes the lesser of two items. The term “connected load” means exactly that.

The entire load you’ve linked to the panel is called Connected Load. As you surely know, the weight does not come on all at once. The maximum demand load is the maximum load that is active at any one time. If you reside in a hot summertime region, the peak load may be between 9 a.m. and 8 p.m., when the air conditioner is on all the time.

What happens if I use more than the allowed load?

When a consumer draws more power than the sanction load on a home or commercial connection, they are charged a power factor penalty and/or demand costs.

What is the formula for calculating sanction load?

  • Tariff and Category establish the rate structure that will be applied to the bill. Typical tariff codes begin with LT (Low Tension 230V single phase or 400 V three phases) or HT (High Tension 230V single phase or 400 V three phases) (High Tension 11kV and above). LT codes are commonly used for residential, business, and small office connections. Larger companies and complexes generally utilize HT codes. The bill’s category defines whether the connection is for residential, commercial, or industrial use. Different tariff codes apply to different rates/slabs, so it’s crucial to double-check that the correct tariff code is used on the electricity bill. As seen below, this information is available on the bill header:
  • Type of Supply & Connected Load (Fixed State/DISCOM Charges): The total pool of supply that is delivered to a meter is known as the Connected (or Sanctioned) Load. This is measured in kW. (or Killo-Watts). This is the maximum cumulative peak kW that can be assigned to a meter based on the appliances that are connected to it. This isn’t your actual energy usage; it simply affects your electricity bill’s set charges. The connected load also influences whether the connection is three-phase or single-phase. If the real load is higher than the sanctioned load, the fixed charges for that month will be affected, and some DISCOMs levy a penalty of higher fixed costs for the incremental increase in the actual load drawn. Every DISCOM has a method of determining the load to be sanctioned to the application, which should be checked on the company’s website because it differs widely, for example:
  • Based on the load of the linked appliances and the redundancy factor, an assessment is made.
  • depending on the kWh unit consumed
  • A screenshot of a Reliance Energy bill in Mumbai is shown below:
  • Consumed Units (Unit Rates per State/Discom): The number of kWh (Kilowatt-Hour) consumed in a month is measured in units consumed. 1 kWh is the same as leaving a 100 Watt light bulb on for 10 hours. The difference between two consecutive month’s meter readings is used to calculate this data. The total monthly usage of all appliances linked to the meter is calculated here. This is the figure that must be reduced in order to lower the electricity cost. An analysis of consumption patterns can reveal which appliances use more electricity (typically Air Conditioners increase consumption in summers). You can use this link to estimate your likely energy use in units (kWh) based on the information from connected appliances in your home and average daily consumption.
  • Tariff Structure: It’s critical to pay attention to the tariff structure on your statement because it’s the best predictor of how much you can save. The construction is often slab-based for residential and SMB commercial connections (unlike industrial connections where units are charged at a high flat-rate). The goal of the slab structure is to encourage low-energy users while penalizing those who consume a lot of energy. The slabs are based on the previously discussed “Units Consumed.” The energy charge fluctuates as the number of units consumed increases, as do the fixed costs associated (single-phase) with the slab. Here’s an example of a Mumbai bill’s rate structure:
  • Fuel Adjustment Charge (FAC): As seen in the tariff structure above, each slab has a different FAC rate. This is the extra power cost incurred owing to gasoline price increases over the course of a year. Coal is used as a source of energy in the majority of cases. According to a study, coal output rates would begin to drop after 2011, reaching 1990 levels by 2037 and reaching 50% of peak value in 2047. As a result, FAC will continue to rise until other sources of electricity are created to the point where they can generate electricity at that low a cost. As a result, electricity prices will almost certainly rise in the future.
  • Electricity Duty/Taxes (Relevant State Taxes): Each state has an Electricity (Duty) Act that defines the applicable taxes for various tariff structures, which can be found on one’s electricity bill. It should be noted that this tax is not covered by the GST as of one date. The following are the taxes that apply in Rajasthan (for example) for each category:

Where the meter is not installed-

The contracted load is determined by the sum of the load(kw) of the connected electrical equipment on the premises and the category (such as domestic, commercial, industrial, or agricultural). For example, the contracted load in a domestic connection shall be 50% of the connected load; similarly, the contracted load in a commercial connection shall be 75% of the connected load; similarly, the contracted load in an industrial or heavy connection shall be 75% of the connected load; similarly, the contracted load in an agricultural connection shall be 75% of the connected load

Where the meter is installed-

(or, in the case of LT Consumers, when MDI is accessible and all HT and EHT connections are supported)

The meter’s installation location and MDI data are both accessible through the meter. In those locations, the contractual load is determined by an agreement between the department’s officer and the department’s consumer based on the electrical equipment installation. However, the maximum demand MD reported on the meter shall not exceed the stipulated load limit. As a result, the meter displays MD/MDI maximum demand in this scenario. Maximum or contracted demand cannot be hidden by the consumer. The contracted demand must equal or exceed the meter MDI/MD/maximum demand.


The department’s Engineer visits the consumer’s premises and adds all the loads connected on the premises to the consumer’s application to determine the contractual load / sanctioned load; in this case, the contracted load is regarded to be 50% of the connected load. Because the domestic factor has a variety factor of 50%, the consumer does not turn on all electrical appliances at the same time. As a result, it is estimated that more than half of the electrical equipment in a household connection is not turned on at the same time. As a result, the domestic connection’s contractual load is deemed to be 50% of the connected load.

The engineer visits the consumer’s location to determine the contractual load in the commercial connection and records the connected load on the consumer’s application. In this scenario, the contracted load is 75 percent of the connected load. This is due to the fact that in the case of commercial connections, the diversity factor is 75 percent. This is because it is believed that the consumer will not utilize more than 75% of the electrical equipment at any given time.

If a consumer applies for a connection, the KW rating of all electrical equipment installed within the industry is added, and the total is known as Contracted Load / sanctioned load. In the case of industry and agriculture, all load is connected on the premises, and the total is known as contract load.

How is contract demand determined in an electricity bill?

Maximum Demand = Connected Load x Load Factor / Power Factor = Maximum Demand The Maharashtra state MSEB has a 30-minute block, which indicates that the continuous peak demand will be determined every 30 minutes.

How can we limit the amount of electricity we use?

  • To beat the summer heat, use ceiling or table fans. Ceiling fans, for example, cost only 30 paise per hour to run, which is far less than air conditioners (Rs 10 per hour).
  • To save money on power, set the room air conditioner to 25 degrees Celsius.
  • By shading your home’s windows and walls, you can save as much as 40% on air conditioning energy.
  • The room can be cooled by using fans.
  • Plant trees and plants to shield your home from the sun’s heat.
  • Close the doors to the air-conditioned rooms.
  • Once a month, change the air conditioner filter. A clogged air filter restricts airflow and may cause the equipment to malfunction.
  • Replace your outdated air conditioner with a more energy-efficient model.

What’s the difference between connected load and maximum demand?

The demand factor is the ratio of the power station’s greatest demand to its connected load.

The demand factor’s value is frequently less than one. Because the highest demand is always less than the connected load, this is the case. The demand factor must be understood in order to determine the plant equipment’s capacity.

The ratio of the power station’s maximum demand to its rated capacity is known as the utilization factor.

A variety factor is defined as the ratio of the sum of individual maximum demands to the maximum demand on the power plant.

The ratio of actual energy produced to the greatest feasible energy that could have been produced during a certain period is known as the plant capacity factor.