Load factor
Definition. Load factor is average demand divided by peak demand over the same period, expressed as a percentage, and it measures how evenly a consumer's electricity use is spread rather than how much they use.
Also called: Utilisation factor · LF
Where you see it: Not printed on the bill — it is calculated from units consumed and the recorded maximum demand.
The calculation
Load factor = units consumed ÷ (maximum demand × hours in the period). A site that used 30,000 units in a 720-hour month with a recorded demand of 100 kW has a load factor of 30,000 ÷ 72,000, or about 42 per cent.
Both inputs are available to any demand-metered consumer: the units and the MDI are both on the bill.
What the number tells you
A high load factor means steady, predictable use — a continuous-process plant might reach 70 or 80 per cent. A low one means short, sharp peaks against long idle periods, which is expensive because demand charges price the peak.
Two sites consuming identical units can pay very different amounts if their load factors differ, and the difference is entirely schedulable.
Improving it
Move flexible processes off the peak, stagger motor starts, and run batch equipment during otherwise idle hours. None of this reduces units; all of it reduces the peak the demand charge is levied on.
For a single-shift operation, the biggest gain is usually in the first hour of the day, when everything is switched on at once.
Frequently asked questions
Is load factor useful for a household?
Analytically yes, financially not much — domestic energy-only tariffs do not levy demand charges, so a peaky household pays the same as a smooth one for the same units.
What is a good load factor?
It depends entirely on the operation. Continuous processes run high; single-shift workshops run low by nature. The useful comparison is your own site against itself over time, not against an industry number.
Related terms
- 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.
- Peak hours — When the peak window actually falls in Pakistan, why it moves with the season, and which household loads are worth moving out of it.
- Connected load — How a DISCO arrives at the connected load written on your bill, why it is always larger than what you actually draw, and when an out-of-date figure costs you money.
- Time-of-use tariff — How TOU billing works in Pakistan, who is required to have it, and whether shifting your load to off-peak hours is actually worth it.
Go further
Back to the full 44-term glossary, or open your own bill with the reference number lookup.