Power factor tariff in power plant engineering sector

Power factor tariff in power plant engineering sector

Power factor tariff:

  • The tariff in which the power factor of the consumer’s load is taken into consideration is known as power factor
    tariff.
  • In an A.C. system power factor plays an important role.
  • A low power factor increases the rating of station equipment and line losses.

The following are the important types of power factor tariff:

  • kVA maximum demand tariff:
    • It is modified form of two-part tariff.
    • In this type the fixed charges are made on the basis of maximum demand in kVA and not in kW.
    • As kVA is inversely proportional to power factor, therefore, a consumer having low power factor has to contribute more towards fixed charges.
    • It encourages the consumers to operate their appliances and machinery at improved power factor.
  • Sliding scale tariff:
    • This is known as average power factor tariff.
    • In this case an average power factor (say 0.8 lagging) is taken as the reference
    • If the power factor of the consumer falls below this factor, suitable additional charges are made
    • If the power factor is above the reference, a discount is allowed to the consumer
  • kW and kVAR tariff:
    • In this type both active (kW) and reactive (kVAR) power supplied are charged separately.
    • A consumer having low power factor will draw more reactive power and hence shall have to pay more charges.
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