Maximum Demand Penalty Calculator
What exceeding contract demand costs — penal billing on the excess at 2× rates.
Crossed your contract demand? Most SERCs bill the excess at double the normal demand rate — and some re-set the billing demand for months. Enter sanctioned and recorded demand; the tool shows the exposure and the right-sized CD that prevents the rerun.
For a HT consumer, 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.
Use the free Maximum Demand Penalty Calculator online — What exceeding contract demand costs — penal billing on the excess at 2× rates. Runs instantly in your browser: no signup, no upload, mobile-friendly.
About Maximum Demand Penalty Calculator
Crossed your contract demand? Most SERCs bill the excess at double the normal demand rate — and some re-set the billing demand for months. Enter sanctioned and recorded demand; the tool shows the exposure and the right-sized CD that prevents the rerun.
How to use Maximum Demand Penalty Calculator
- 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 Maximum Demand Penalty Calculator?
- ✓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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