What is maximum demand (MD) and MD penalty?
Maximum demand is the highest average load the meter records in a short interval during the billing period. Also called MD, recorded maximum demand, MDI reading, billing demand, excess demand charge.
- Plain English
- Official sources
- Bill terms A–Z
Maximum demand (MD) and MD penalty on your bill
The meter records the average load over short intervals. The highest value in the billing period is the maximum demand (MD).
The bill may show it as 'MD' or 'MDI reading', in kW or kVA.
If the MD is more than the sanctioned load or contract demand, the tariff order can add a charge on the excess.
Example rule (Chhattisgarh LV): excess load is charged at one and a half times the sanctioned-load tariff. If the rate is Rs 20 per kW, 2 kW extra costs 2 x 20 x 1.5 = Rs 60.
Spread heavy loads over the day. If the MD is often above the limit, ask to raise the sanctioned load.
Related terms
Official sources
- Electricity (Rights of Consumers) Rules, 2020, G.S.R. 818(E), 31-12-2020 (Gazette copy hosted by MERC), rule 2(1)(j)
“the highest load measured in average kVA or kW at the point of supply of a consumer” - UPERC Electricity Supply Code, 2005, Notification UPERC/Secy.-Supply Code/05-4528, 18-02-2005 (copy hosted by PVVNL), cl. 2.2(ll)
“the average amount of KW or KVA, as the case may be, delivered at the point of supply of the consumer” - CSERC Tariff Schedule for FY 2026-27 (CSPDCL tariff order, 24-06-2026), s.1.1.12 item 1
“charged at the rate of one and half times of the Sanctioned load based tariff”
Read on 17 October 2026. Your State regulator’s rules and your discom’s bill have the final word.