1. What is Contract Demand?

Contract Demand is the maximum demand that a consumer agrees not to exceed during the contract period. It's a key parameter in electricity supply agreements and helps utilities plan their infrastructure.

2. How Does the Calculator Work?

The calculator uses the Contract Demand formula:

Where:

• \( \text{Max Load} \) — Maximum power demand of the facility (kW)
• \( \text{Diversity Factor} \) — Ratio of sum of individual maximum demands to the maximum demand of the whole system (0-1)

Explanation: The diversity factor accounts for the fact that not all loads operate at their maximum simultaneously.

3. Importance of Contract Demand Calculation

Details: Accurate contract demand calculation helps in proper tariff selection, avoids penalty charges for exceeding demand, and ensures optimal infrastructure planning.

4. Using the Calculator

Tips: Enter maximum load in kW and diversity factor (between 0 and 1). The diversity factor is typically 0.5-0.9 for most commercial installations.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical diversity factor?
A: Residential areas: 0.4-0.6, Commercial buildings: 0.7-0.9, Industrial plants: 0.5-0.8 depending on process synchronization.

Q2: How is max load determined?
A: Through load surveys, historical data, or by summing up all connected loads with their demand factors.

Q3: Can contract demand be changed?
A: Yes, but usually with advance notice to the utility company and possible contract revisions.

Q4: What happens if I exceed contract demand?
A: Most utilities impose penalty charges or may even disconnect supply for repeated violations.

Q5: How does this differ from billing demand?
A: Billing demand is the actual measured maximum demand during the billing period, while contract demand is the agreed limit.