Discussion
A consumer drawing a maximum demand of 500 kW and consuming 200 000 kWh over a 720 hour month has a load factor of
Answer: C
Correct answer: 55.6 per cent
Load factor is the energy actually taken as a fraction of what would have been taken at the maximum demand throughout: \[ \frac{200\,000}{500 \times 720} = \frac{200\,000}{360\,000} = 0.556. \] A high load factor means the capacity provided is well used, which is why tariffs reward it - the demand charge falls per unit as the load factor rises.
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