The Most Effective Ways to Avoid the Electricity Penalty
Learning the Most Effective Ways to Avoid the Electricity Penalty is a need of an hour! Not only to avoid the current electricity penalties but to avoid the overall unseen future risks and expenses.
Effective Ways to Avoid Electricity Penalty
We can easily avoid the electricity penalties by using energy-efficient equipment that consumes less energy. Electricity penalties often arrive with low power factor values. The primary electricity bill you receive is based on four components, i.e., tax, electricity penalty, demand charges (in kW), and energy charges (in kWh).
Working towards saving yourself from unnecessary penalties is not an arduous task to do. Once you learn to rectify your low power factor by making the power factor correction, then many things will fall into their place. It saves a tremendous amount of energy and current supply that, in turn, reduces the overall energy cost and operational charges for the company.
The CVR – conservation voltage reduction and harmonic solutions are the most significant energy savers. Not only it saves energy but improves the overall capacity and durability of the system. It leads to financial progress and saves you from the extra electricity penalty.
Why utilities charge Power factor Penalties when Effective Ways to Avoid Electricity penalties are not adopted by the customers?
Power factor is the ratio of kW to the kVA. Mainly talking about the electricity penalty, some utilities impose it only on the customers having low power factors. In contrast, other utilities make the electricity penalty familiar for all the customers to compensate for their loss. In the second medium, they increase the kW demand rates and the kWh for every consumer.
They do reimburse for the extra installation charges of the power factor correction banks that occur at substations. Now, the question comes to why customers are charged extra for having the low power factor? To answer this, we must have deep knowledge about what happens when we have the typical low power factor. Any loads or motors having a low power factor indicates their need for extra reactive power.
The capacitors themselves usually compensate for this extra power. In such cases, the utilities are overburdened with providing the additional current & kVA rather than what they provide, I.e., PF having the optimum strength of unity (1) or near it. The rating of such devices is measured in terms of either amps or kVA.
Therefore, to compensate for the devices having low power factors, utilities oversupply the current through these conductors and other devices. For this extra supply of current, these utilities charge the Electricity Penalty.
It is the core reason that customers having the low power factor devices get heavy Electricity Penalty. In contrast to this, these utilities give rewards to the customers that have the high power factor.
How does adopting the Effective Ways to Avoid Electricity penalty provide the solution?
One of the most Effective Ways to Avoid the Electricity penalty is to check the total amount of energy consumed by the devices. It would help if you minimized the energy procured in the installation of the machine and during the working of the building control systems.
These intelligent building control devices force the current technology or the latest tools into consuming the least energy. It is possible to do so with the help of lighting control, load management tools, and advanced thermostats. You can also use tools that are energy efficient.
Such devices include LEDs lighting, energy-efficient transformers & motors, and VFDs – variable frequency drives. Inculcating all these tools in your current technology will enhance the system productivity by correcting the low Power Factor. It will save a lot of the company’s expenditures, leading to a lessened unwanted electricity penalty.
Conclusion
Electricity Penalty and low Power Factors are the two things that bring the extra cost to the company. Money-saving is the priority of every firm. Once you’ll get to know the Effective Ways to Avoid Electricity penalty, then you can secure a lot of your money. With the help of industry-implemented techniques, you can save a considerable amount from your electrical energy bill.
We are India’s leading power Quality solutions provider. Dealing with the low power factor increases your voltage drop leading to high consumption of current. It, in return, increases your expenses. We at Powermatrix bring you industry-proven solutions to cut down on your electricity bills. Our skilled team uses the Effective Ways to Avoid Electricity penalty. You can connect with us via the contact details mentioned on our official website page. Contact Power Matrix Solutions Today.
