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

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).   
Reactive-Apparent-Active Power

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 based on power factor, if below 0.90 (lead or lag) and power factor above 0.95(lead or lag). As power factor determines efficiency of energy conversion. If power factor is 0.80 lag it determines 20% of the electrical energy not used efficiently. Therefore, customer's need to pay penalty. 
                                                                      

Why kVAh Billing Introduced?

kVAh billing ensuring energy efficiently used and provide billing simplicity. It simplify penalizing and providing incentive to customer based on power factor. 

- Presently on national level more importance is given for energy conservation, energy management and stable grid system. Reactive power occupies more useful space while generation and distribution and reduce the active power transmission. Also, occupancy of reactive power are billed by the consumer. 

Now, the question is:
Why should I pay for the energy I didn’t used??? 
Beer comparision of active and reactive power
- As per the image above, presently customer need to pay even for reactive power. It means the equipment use electrical energy inefficiently. 

- Rather than satisfying reactive power requirement from local it is drawn from grid. No power factor improvement parameter taken care by customer. These negligence cause system instability.  

- The primary objective of the kVAh billing is to make customer maintain near unity power factor loads, improve power quality, improve system stability and reduce losses. 

- kVAh billing impose less charges to the customer using electricity efficiently compare to the other inefficiently using customers. 

- kVAh billing is implemented on all HT and LT customer with load above 20kW from 1st April 2020 by MERC (Maharashtra Electricity Regulatory Board). 

- In some of the states kVAh billing are already introduced like Uttarpradesh, Bihar, Chattisgarh, Haryana, Punjab, etc. 

 
Refer Why save electricity?  for reason to save electricity. 





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