Contract Demand Right-Sizer — IT Park / Campus
Is the it park / campus's sanctioned demand right-sized? Floor billing waste vs penal exposure.
Campus demand grew with every fit-out; CD usually lags or overshoots in steps. Annual right-sizing against the 12-month recorded maximum is free money either way.
For a it park / campus, the minimum-billing floor means an oversized CD bills you for capacity you never draw — while undersizing triggers 2× penal rates the month you exceed it. Right-size to recorded peak + ~15% and revisit after any expansion.
Indicative estimates only, not financial or investment advice. Tariffs, subsidies and net-metering rules change — verify with your DISCOM, utility or installer before committing.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Use the free Contract Demand Right-Sizer — IT Park / Campus online — Is the it park / campus's sanctioned demand right-sized? Floor billing waste vs penal exposure. Runs instantly in your browser: no signup, no upload, mobile-friendly.
About Contract Demand Right-Sizer — IT Park / Campus
Campus demand grew with every fit-out; CD usually lags or overshoots in steps. Annual right-sizing against the 12-month recorded maximum is free money either way.
How to use Contract Demand Right-Sizer — IT Park / Campus
- 1Enter sanctioned demand and the highest recorded MD of the last year.
- 2Set the demand rate and the minimum-billing floor from your tariff.
- 3Read the verdict and the recommended contract demand.
Why use Contract Demand Right-Sizer — IT Park / Campus?
- ✓Reads twelve months of recorded MD against the floor billing trap
- ✓Both failure modes priced: paying for air vs 2× penal rates
- ✓Recommended CD with a sane 15% headroom
- ✓Annual saving quantified for the revision application
Frequently asked questions
What is contract demand and how is it billed?+
The kVA capacity you reserve from the DISCOM. You pay demand charges on recorded maximum demand OR a floor (typically 75–80% of CD), whichever is higher — so unused CD bills anyway. Exceeding CD bills the excess at penal rates (commonly 2×). Both directions cost; right-sizing is free.
How do I right-size my contract demand?+
Twelve months of bills, take the highest recorded MD, add ~15% headroom, round up: that's the application. The calculator shows the annual saving from shedding floor-billed air — frequently ₹1–5 lakh/yr for mid-size HT consumers, recoverable with one form.
What happens if I exceed my contract demand?+
The excess kVA bills at penal rates (often 2×) for that month, and repeated exceedance can trigger compulsory CD revision or disconnection notices. One careless month costs more than a year of right-sized headroom — which is why the recommendation includes the 15% buffer.
When should contract demand be reviewed?+
Annually on schedule, and immediately after load changes: solar installation (daytime MD falls), EV chargers (night MD rises), expansion or shutdown of plant. CD set once at connection and never revisited is the single most common silent overpayment in HT billing.
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