Sanctioned Load: The Power a Building Is Allowed to Draw

Sanctioned load is the maximum electrical load the distribution company has approved a premises to draw, in kW or kVA. It is applied for based on the building's connected load with diversity applied, and it sets the supply type, the fixed charges and whether the connection is LT or HT.

By Dhruv Agarwal · · 1 min read

Why it matters

Sanctioned load is set once and then shapes years of bills. Too low, and the building pays penalties and faces an upgrade application. Too high, and it pays fixed charges for capacity it never uses — and may have bought a larger transformer than it needed.

How it works in practice

TermMeaning
Connected loadSum of all installed equipment ratings
DiversityAllowance for equipment not running together
Maximum demandHighest load actually drawn
Sanctioned load / contract demandWhat the DISCOM approves

Common mistakes

  • Applying for connected load without diversity. Leads to paying for capacity that is never used.
  • Ignoring future growth. Load enhancement later is slower and costlier.
  • Leaving it to the end. The application sits outside the site programme and can hold up energisation.

Standards referenced

Installation safety under the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023. Sanction procedures are set by each state's electricity distribution company.

Standards referenced

Frequently asked

Connected load is the total rating of everything installed. Sanctioned load is what the DISCOM approves the premises to draw, which is normally lower because not everything runs at full load at the same time — that reduction is diversity.

DISCOMs typically levy penalties for exceeding sanctioned load or contract demand, and repeated excess can require a load enhancement application. Undersizing at the start also means cables and panels may need upgrading later.

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