Fixed charges
Definition. Fixed charges are the part of an electricity bill that does not vary with consumption, levied per connection or per kilowatt of sanctioned load to recover the cost of keeping capacity available to you.
Also called: Minimum charges · Demand charges · Fixed monthly charges
Where you see it: In the charges block for commercial, industrial and some three-phase domestic connections; frequently absent from small single-phase domestic bills.
Per connection versus per kilowatt
Domestic and small commercial categories that carry fixed charges usually pay a flat monthly figure. Industrial and larger commercial categories pay per kilowatt of sanctioned load, or on maximum demand recorded in the month.
For those consumers, sanctioned load is not a formality — every extra kilowatt sanctioned costs money every month whether it is drawn or not.
Minimum charges
Some schedules set a floor: if the energy charge for the month falls below a stated minimum, the minimum is billed instead. A seasonal business that shuts for two months still pays it.
This is the reason a closed shop's bill is rarely zero, and it is a genuine argument for surrendering a connection you no longer need rather than letting it idle.
Frequently asked questions
Can I reduce my fixed charges?
Where they are load-based, yes — by applying to reduce sanctioned load to what you actually draw. It is a formal application through the sub-divisional office and it takes an inspection, but the saving is permanent.
Do fixed charges apply during load shedding?
Yes. They pay for the capacity to be available, not for units delivered, so they are unaffected by outage hours.
Related terms
- Sanctioned load — The difference between connected and sanctioned load, what happens when you exceed the sanctioned figure, and how to apply to change it in either direction.
- Maximum demand indicator — Why commercial and industrial bills charge for a single half hour of the month, how MDI is measured, and the practical ways to bring the recorded peak down.
- Meter rent — What the meter rent line covers, why it differs between single-phase and three-phase connections, and whether buying your own meter removes it.
- Tariff code — Decoding A-1, A-1a, A-2, B-1, C-1 and D-1 on a Pakistani electricity bill, and what happens when your connection sits in the wrong category.
Go further
Back to the full 44-term glossary, or open your own bill with the reference number lookup.