The KVAH billing Effect?
1% to 50% increase in Electricity bill
from April 2020.
What is KVAH Billing
• Electrical Energy has two components viz. Active Energy (kWh) and
Reactive Energy (kVArh). Vector sum of these two components is called as
Apparent Energy & is measured in terms of kVAh.
• In kVAh based billing, fixed/ demand charges are levied on apparent power
(kVA) and energy charges are levied on apparent energy (kVAh). In future,
energy charges will be levied based on this apparent energy (kVAh)
consumption which eliminates requirement of charging active and reactive
The Existing Billing Method
• At present, Consumers are billed on Active Energy Consumption measured
in kWh along with the fixed charges and other charges. kWh consumption
when multiplied by the applicable tariff for the consumer will give energy
charges payable by the consumer. The effect of reactive energy is
considered through Power Factor penalty / incentive mechanism. Penalty is
levied to consumers for Power Factor (PF) below 0.90 (for Lead as well as
Lag PF) and incentive is provided for P.F. above 0.95 (for Lead as well as
When will kVAh billing be implemented?
• As per MERC Order in Case no. 195 of 2017 dated September
12, 2018, The Commission intends to implement kVAh billing
to all HT consumer and LT consumers having load above 20
kW from 1st April, 2020.
Is kVAh billing implemented anywhere in India?
• State Electricity Regulatory Commissions in various States viz. Himachal
Pradesh, Delhi, Uttar Pradesh, Jammu & Kashmir, Andhra Pradesh,
Chhattisgarh, Bihar, Haryana, Punjab etc. have already introduced kVAh
based tariff for various categories.
How to control the KVAH surge?
• You have to keep the Apparent Energy (KVAH) equals to Actual Energy
(KWH). Any increase in KVAH value means increase in electricity bill.
• KWH=KVAH when PF=1.0
• So, we need to maintain Power Factor at unity, every day & every month
Any change in PF value means paying more money to the electricity
• We need to keep harmonics level under the IEEE standards. A high harmonics can create many disturbances including a bad Power Factor.
• We need to keep monitoring the Energy consumption (KWH) of
equipments/loads so as to not allow any unnecessary surge in KVAH values.
The Solution- KVAH Billing Audit
• Testing of various power parameters; KVAH, KWH,
KVARh, PF, Harmonics.
• Designing a suitable KVAH compensation system.
• Installation & commissioning of the system.
• Analyzing & Monitoring for 3 months.
• Submitting closure report.