How to Reduce Fixed Charges by Right-Sizing Your Sanctioned Load

1. Check what you're sanctioned vs what you actually draw

Your bill prints both numbers: sanctioned load (contracted kW) and, on most modern bills, recorded / maximum demand (the highest kW you actually drew). If recorded demand sits well below sanctioned load month after month — say 2 kW recorded against 5 kW sanctioned — you are a candidate for a reduction.

2. What a reduction is worth

Fixed-charge schedules are either flat ₹/kW/month or tiered by load band, so the saving is simply (kW reduced) × (rate) — or a drop to a cheaper band. Some examples of how the structures differ (find your DISCOM's exact schedule on its tariff page):

• Per-kW schedules (e.g. UPPCL domestic): every kW removed saves the full per-kW rate, every month.
• Banded schedules (e.g. Delhi LT-I, MSEDCL LT-1): the saving comes from crossing into a lower band — moving from the "2–5 kW" band to "up to 2 kW" can halve the fixed charge in one step.

Estimate it precisely: run the calculator twice with your current and proposed loads and compare the fixed-charge line.

3. Don't go too low — the excess-demand penalty

This is the trade-off that makes "sanction the minimum" a bad idea. If your recorded demand exceeds the sanctioned load, most DISCOMs bill the excess at a penal rate — commonly 1.5× to 2× the normal fixed charge on the excess kW, and repeated breaches can trigger a forced load regularisation. Size for your realistic peak: add up the appliances that genuinely run together on a summer evening (AC + fridge + water heater + lights), not the sum of everything you own.

4. How to apply

1. Apply for "load reduction" on your DISCOM's portal or at the sub-division office — the same channel as a new-connection application in most states (see our new connection hub for portal links).
2. Expect a small processing fee and, in some states, a fresh test report or inspection.
3. The change takes effect from the next billing cycle; agreements/security deposits are adjusted to the new load.

Also worth checking while you're at it: households that added ACs or an EV charger since sanction may need to go the other way — a small load increase costs less than recurring excess-demand penalties.

Frequently asked questions

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