Avoid Penalty on Electricity Bill with kVAh Billing System
Avoid Penalty on Electricity Bill with kVAh Billing System
Electrical energy consists of two components, that are Reactive energy and Active energy. Both are in units kVArh and kWh, respectively. The vector sum of both of these components is known to be as Apparent energy. And, this energy is measured and represented with unit kVAh. Under the kVAh based billing structure, the demand or fixed charges are imposed upon the apparent power, represented as kVA. Along with that, the energy charges that are imposed upon the apparent energy are known to be as kVAh. In the future, all of the energy changes will be on the apparent energy consumption. Hence, it eliminates the necessity of charging reactive and active energy separately.
The kVAh billing system is destined for all HT & LT consumers of Maharashtra, whose units have a load of over 20 kW. This implementation commenced on April 1, 2020, as per the MERC Order of Case No. 195 of 2017, dated September 12, 2018. Powermatrix responds to this upgrade and believes that there will be a huge impact on how power quality is about to be maintained after this new tariff is out.
The organizations in India have huge power consumption concerns, and to maintain the quality of it, people have to pay a high price as per the new tariff. As per the implantation of the kVAh, billing will ensure power factor near unity. Along with that, kVah will also ensure a collaborative check on electrical grid pollution and harmonic generation, and Powermatrix intends to help you with ideal kVAh billing. The PF incentive is already within the tariff structure; So organizations will not have to pay separate PF incentives.
Types of Billing Systems
Both reactive and active energies go through simultaneous consumptions. The reactive energy is measured by kVArh. It occupies the entire electricity network capacity, and results in the reduction of the system capacity for distribution and generation. Hence, the consumption of it is also eligible for billing.
The kWh billing system comes with a PF incentive or penalty mechanism, forcing you to pay the penalty separately. Under it, the consumers were billed upon Active Energy Consumption; and have fixed and additional charges for the same. The PF incentive or penalty considers the reactive energy, and it is imposed upon the consumers when the PF goes below 0.90 for both lead and lag. You get an Incentive if you have a PF above 0.95 for both leading and lagging.
The kVAh billing system doesn’t put up the necessity of charging the reactive and active charges separately. It entitled them all into one! Today, commercial inducement demands the use of a kVAh billing system that seems more profitable and efficient.
What is the Difference Between kWh and kVAh Billing Systems?
Some of the probable difference factors between kVAh and kWh billing systems are:
- The reactive power is monitored through the power factor in kWh billing, whereas in kVAh billing, the reactive power is measured based upon the use of more reactive power than the specified pay.
- The billing formula for the kWh billing system is Demand charge + Energy Charge for kWh + ED + FCA, whereas the kVAh billing system formula is Demand Charge + Energy Charge for kVAh + ED + FCA.
- Power factor monitoring is required for penalty or incentives in kWh billing, whereas it is not essential in kVAh billing, as it is built-in before integration.
Why is kVAh Billing Important?
Here are some of the aspects that enlighten the importance of the kVAh billing system:
- Better utilization of the power by consumers.
- Low energy charges for the organizations.
- The new billing methodology is simple to understand with few parameters.
- Better system stability is obtained, with high power quality,
- Enhanced voltage profile and suppressed expenditure of capital.
- Minimum or no use of reactive power by the consumers.
Hence, if you wish to migrate from your existing billing system to kVAh, then we at Powermatrix can help you out with changing your billing system. Reach out to us today to know more about our services associated with kVAh billing.
FAQs
With the installation of capacitors that possess appropriate ratings, the power factor will improve. And you can compensate for the requirement of reactive power with it. Hence, the consumers will reduce the reactive power.
You need to install trivector meters, TOD, and others to get an instantaneous power factor on the meter display.
Install capacitors if the power factor is lagging and remove excess capacitors if the power factor is leading.
