What Steps Should Customers Take for New kVAh Billing Norms?

Synopsis
Key Takeaways
- Assess your electrical system to comply with kVAh billing.
- Maintain a high Power Factor to avoid extra charges.
- Install Power Factor Correction equipment.
- Consult certified electrical experts for guidance.
- Stay informed through utility communications.
Mumbai, April 29 (NationPress) Adani Electricity Mumbai Limited has urged its customers to assess their electrical systems and implement necessary adjustments following the introduction of kVAh billing, effective as per the tariff order from the Maharashtra Electricity Regulatory Commission (MERC).
Customers throughout Maharashtra, particularly those in commercial and industrial sectors with a sanctioned load exceeding 20 kW, are encouraged to evaluate their electrical frameworks and make corrective changes in light of the new kVAh billing, which commenced in accordance with the MERC Tariff Order dated March 29, 2025 (Case No. 227 of 2023).
"We have proactively identified customers who may not have implemented corrective actions and are reaching out to them individually. While many have reacted positively, sectors such as banks and schools, which necessitate internal approvals, may require more time," stated a spokesperson for Adani Electricity Mumbai Limited.
Although the number of affected customers is relatively small, timely action is essential, he added.
With the updated billing method, customers will now be billed based on apparent energy (kVAh) rather than solely on active energy (kWh). kVAh billing accounts for both active (real) and reactive (non-productive) energy consumption. Ensuring a high Power Factor (near 1.0) is vital to avoid increased electricity costs.
This change applies to all relevant low-tension (LT) consumers across the state.
The advisory from Adani Electricity indicates that consumers with a low Power Factor might see a substantial rise in their electricity bills, with evaluations based on March 2025 consumption patterns suggesting potential increases if corrective measures aren't taken.
Customers are advised to consistently monitor and maintain their Power Factor and to install or upgrade Power Factor Correction (PFC) devices like capacitor banks or Automatic Power Factor Correction (APFC) panels.
In cases where a customer’s sanctioned load is below 20 kW, they should consult their utility to explore the possibility of switching to an appropriate tariff category, such as LT II-A, as per the advisory.
Not all electricity consumed from the grid is utilized for productive purposes. Active Power (kWh) powers devices like lighting, motors, and appliances, while Reactive Power (kVArh) ensures voltage stability for inductive loads such as motors and transformers but does not perform useful work.
Excessive reactive power leads to energy wastage and inefficiencies in the electricity network, now reflected under kVAh billing.
The Power Factor represents the ratio of active power to total apparent power (kVAh). A Power Factor of 1 (unity) indicates that all energy drawn is used efficiently. A lower Power Factor results in increased wasted energy and higher billed units under kVAh billing.
Maintaining a high Power Factor guarantees reduced losses, enhanced energy efficiency, and lower electricity costs.
Capacitor banks or APFC systems assist in countering reactive power demand locally within a consumer’s facility.
Upgrading or installing these systems enhances the Power Factor, leading to reduced overall kVAh consumption and effective management of electricity bills.
According to the advisory, the transition to kVAh billing encourages responsible energy consumption by discouraging unnecessary reactive power draw, ultimately benefiting both consumers and the grid through improved energy efficiency, lowered network losses, and enhanced reliability and service quality. It also contributes to a more sustainable and cost-effective energy ecosystem.
Utilities throughout Maharashtra have been actively notifying affected customers via letters, emails, SMS alerts, advisory meetings, and consultations. This public advisory aims to further raise awareness and prompt consumers to take immediate action to minimize potential billing impacts, as stated by Adani Electricity.