Discussion
A consumer with a maximum demand of 500 kVA at 350 per kVA and 200 000 kWh at 8 per kWh pays a total of
Answer: B
Correct answer: 17.75 lakh
Compute the two parts and add: \[ 500 \times 350 = 1\,75\,000, \qquad 200\,000 \times 8 = 16\,00\,000, \] \[ \text{total} = 17\,75\,000 = 17.75\ \text{lakh}. \] The demand charge is about a tenth of the bill here; for a consumer with the same demand but a lower load factor it would be a far larger share, which is what the demand charge exists to capture.
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