# 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.

## 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

| Term | Meaning |
| --- | --- |
| Connected load | Sum of all installed equipment ratings |
| Diversity | Allowance for equipment not running together |
| Maximum demand | Highest load actually drawn |
| Sanctioned load / contract demand | What 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.

## Frequently asked questions

### What is the difference between connected load and sanctioned load?

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.

### What happens if a building exceeds its sanctioned load?

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.

## Sources

- [CEA (Measures relating to Safety and Electric Supply) Regulations, 2023](https://cea.nic.in/regulations/notified-regulations?lang=en) — Safety of electrical installations

---

Source: https://hagerstone.com/glossary/sanctioned-load