---
title: "Define consumption growth factor"
subject: "Transmission and Distribution System Design"
chapter: 6
key: "semester_8/transmission_and_distribution_system_design:define-consumption-growth-factor"
source: https://www.bctengineer.com/q/semester_8/transmission_and_distribution_system_design/define-consumption-growth-factor
site: BCT Engineering
---

# Define consumption growth factor

Transmission and Distribution System Design · Chapter 6: Electrical Load Characteristics and Load Forecast

- Asked in: 2067 Chaitra (old course), 2 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/transmission_and_distribution_system_design/define-consumption-growth-factor
- Whole chapter: https://www.bctengineer.com/md/semester_8/transmission_and_distribution_system_design/chapter-6

## Question

Define consumption growth factor with respect to distribution consumer characteristics.

## Short answer

The annual rate at which a consumer's average electricity consumption (kWh/month) increases due to appliance acquisition and rising living standards. For n years, consumption grows as Eₙ = E₀(1 + g)ⁿ. It is distinct for each consumer class and separate from population growth.

## Answer

**Consumption growth factor** is the annual rate at which the average electricity consumption (kWh per month or per year) of a consumer of a given class increases, as consumers buy more appliances and use more energy with rising income and living standard.

If $E_0$ is the present average consumption per consumer and $g$ is the consumption growth factor (per year), the consumption after $n$ years is

$$
E_n = E_0 (1 + g)^n
$$

Example: 30 kWh/month with $g = 5\%$ becomes $30 \times 1.05^5 = 38.3$ kWh/month in the 5th year.

It is different for each consumer class (domestic, commercial, industrial) and is separate from the population (consumer number) growth factor. It is used in load forecasting to find the design-year peak demand of a load centre for sizing transformers and feeders.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Consumption growth factor is:
   A. Annual increase in number of consumers
   B. Annual rate at which a consumer class's average energy consumption increases
   C. Ratio of connected to potential consumers
   D. Ratio of average to peak load
   Answer: B. It reflects rising appliance use and living standards for each class, separate from population growth. (Key point: Definition)

2. Consumption after n years is:
   A. E0 (1 + g)^n
   B. E0 + g n
   C. E0 / (1 + g)^n
   D. E0 g^n
   Answer: A. Compound growth: E_n = E0 (1+g)^n. (Key point: Formula)

3. 30 kWh/month with g = 5% becomes what in the 5th year?
   A. 37.5 kWh
   B. 35.0 kWh
   C. 38.3 kWh
   D. 150 kWh
   Answer: C. 30 x 1.05^5 = 38.3 kWh/month. (Key point: Example value)

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