At present, Consumers are billed on Active Energy Consumption measured in kWh along with the fixed charges and other charges. kWh consumption when multiplied by the applicable tariff for the consumer will give energy charges payable by the consumer. The effect of reactive energy is considered through Power Factor penalty / incentive mechanism. Penalty is levied to consumers for Power Factor (PF) below 0.90 (for Lead as well as Lag PF) and incentive is provided for P.F. above 0.95 (for Lead as well asLag PF).
Both Active (kWh) and Reactive (kVArh) energies are consumed simultaneously. Reactive Energy (kVArh) occupies the capacity of electricity network and reduces the useful capacity of system for generation and distribution & hence its consumption also needs to be billed. kWh based billing is associated with PF incentive /penalty mechanism. Considering that the kVAh based billing has an inbuilt incentive /penalty mechanism and separate mechanism for the same is no more required; instead of billing two energies separately, billing of kVAh energy is preferred as a commercial inducement.
KVAh billing has an inherent mechanism to incentivize or penalize consumers according to their power factor. The Prime Objective of the kVAh based billing is to encourage the consumers to maintain near unity Power factor to achieve loss reduction, improve system stability, power quality and improve voltage profile. At the national level, emphasis is being given to Energy Conservation, Energy Efficiency and Demand Side Management (DSM) to optimize the energy usage. Through kVAh billing, the consumers will be encouraged to adopt energy efficiency programs and will be benefited by reduced electricity bills.
KVAh billing has an inherent mechanism to incentivize or penalize consumers according to their power factor. The Prime Objective of the kVAh based billing is to encourage the consumers to maintain near unity Power factor to achieve loss reduction, improve system stability, power quality and improve voltage profile. At the national level, emphasis is being given to Energy Conservation, Energy Efficiency and Demand Side Management (DSM) to optimize the energy usage. Through kVAh billing, the consumers will be encouraged to adopt energy efficiency programs and will be benefited by reduced electricity bills.