Usually understanding electricity is made very simpler by power distribution companies. Whenever new electricity bill received then everyone reads through it to come to know what is the unit consumption this month and whether this consumption is increasing or decreasing everyone uses some trend analysis.
There are some certain terms which should everyone know before understanding electricity bill.
Before going in details please look at the bill mentioned above.Sanctioned Load
When you look at the bill at the top most there is Name and address is printed on the bill. Then there is Sanctioned load which indicates what is the load sanctioned for Industrial or domestic customers. This is usually sanctioned depending upon load connected at the system .
Maximum Demand Indicator
Then there is MDI means Maximum demand indicator which indicates the Maximum demand for the current month billing period this Maximum demand should not exceed Sanctioned load. For Industrial customers if this maximum demand exceeds the sanctioned load certain amount of penalty will be charged to the customers if that MDI kept on exceeding sanctioned load for three billing cycles then load will be enhanced by power distribution companies depending upon maximum MDI of last three bills and security deposit amount will be charged by power discoms in that new bill. Same will be true for domestic customers but no penalty will be charged for exceeding maximum demand.Power Factor:-