What is contract demand?
Contract demand is the maximum demand in kVA or kW written in your supply agreement with the discom. Also called CD, contracted demand.
- Plain English
- Official sources
- Bill terms A–Z
Contract demand on your bill
Larger consumers sign an agreement with the discom. It states the contract demand, usually in kVA.
The demand charge is often worked out on the contract demand, or on a share of it, whichever is higher.
If the recorded maximum demand goes above the contract demand, the tariff order may charge the excess at a higher rate.
Most homes have a sanctioned load, not a contract demand.
Check the contract demand on the bill. Ask the discom to change it if your use has changed for good.
Official sources
- TNERC Tamil Nadu Electricity Supply Code (consolidated text), reg. 2(f)
“the demand specified in the agreement between the consumer and the Licensee” - Electricity (Rights of Consumers) Rules, 2020, G.S.R. 818(E), 31-12-2020 (Gazette copy hosted by MERC), rule 2(1)(b)
“increase or decrease in sanctioned load or contract demand”
Read on 17 October 2026. Your State regulator’s rules and your discom’s bill have the final word.