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Difference Between kWh (Active Energy) and kVAh (Reactive Energy) Billing

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Lets discuss about what is the difference between active, reactive and apparent power? Also, do you know the difference between kWh and kVAh billing? and how it affects your wallet? Components of Electrical Power: Electrical Power has two component active and reactive power. kVA is vector sum of reactive power (kVAR) and active power (kW).    How presently electricity bill charged? Energy meter read based on active power (kWh). Customer bill includes energy consumption charges, fixed charges and other charges.  Click Here for how electricity bills calculated in per unit. Active power is used for heat, light and motion.  Reactive power (kVAR) drawn from grid to customers if customer use inductive equipment. Also, reactive power drawn by grid if customer use excessive capacitive load.  Also, reactive power are used for electromagnetic field generation.  Effect of reactive power considered by Power Factor. Power factor is the ratio of active to apparent power.  Penalty levied on consumer