Contract Demand
Contract Demand: right-sizing to cut fixed cost
5 min read · Updated 2026
Why contract demand review can cut fixed costs by 10–25% for many industries.
What is contract demand?
The maximum load the DISCOM commits to supply. Your fixed charge is ₹/kVA of contract demand or recorded MD, whichever is higher.
Right-size it
If your MD stays below 75% of contract for six months, apply for reduction. Increase later if operations expand.
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