# Should I reduce the contract demand on my HT electricity connection?

Canonical: https://senseible.earth/answers/should-i-reduce-contract-demand-on-ht-bill

If your recorded maximum demand stays well below contract demand, yes. Most tariffs bill demand charges on the higher of recorded demand or a set share of contract demand, so the gap is money paid for nothing. It saves cost, not emissions; emissions follow kWh.

## How to decide

1. Take 12 months of recorded maximum demand from your bills.
2. Find the billing floor, the share of contract demand billed when usage is low, in your state tariff order.
3. If peak demand plus a safety margin sits under that floor, apply to the discom to reduce.

## Risk

Exceeding contract demand often attracts penalty rates. Leave headroom for seasonal peaks and new machines.

## What Senseible does here

Senseible reads electricity bills, including kVAh, demand and solar export lines, into dated records with the units, factor and year behind every Scope 2 figure.

- [Maximum demand charges](https://senseible.earth/answers/maximum-demand-charges-peak-shaving)
- [Time of day tariff](https://senseible.earth/answers/time-of-day-electricity-tariff-for-factories)
- [Power factor rebate and penalty](https://senseible.earth/answers/power-factor-rebate-and-penalty)

Sources: [Bureau of Energy Efficiency, energy efficiency guides](https://beeindia.gov.in), [GHG Protocol Scope 2 Guidance](https://ghgprotocol.org/scope-2-guidance)

Last reviewed 2026-10-22.